Market Expansion at cms electronics

Description

Market Expansion at cms electronics: Abstract

This real case about cms electronics, a European electronic manufacturing services (EMS) provider, presents a decision situation in which the company’s CEO must determine the best way to expand activities in the Asian market. A « follow the customer » strategy seems to be called for, as the company’s customers, mainly in the automotive sector, are shifting their focus from Europe to Asia. Setting up a local factory, however, would involve a high level of risk and investment for this relatively small company.

The case can be used to discuss how geographic shifts in the centre of gravity of a global industry can affect the global supply chain management and internationalization strategies of a relatively small industry player.

Teaching objectives

• Explore how smaller players in a global industry can benefit from the advantages of internationalization despite their relative resource disadvantages compared to global market leaders
• Understand the importance of location-based advantages in a global business environment
• Investigate how companies can profit from cross-border cooperation along the value chain (with outsourcing partners) and at the same level of the value chain (in international joint ventures)
• Understand that companies can be set up as efficient, integrated value creation systems across national borders

Main themes covered

• Internationalization of resource-constrained medium-sized companies
• International joint venture
• Optimizing global supply chains
• Building integrated cross-border value creation systems

Concepts and theories related to the case

• Capabilities-based theory of the multinational enterprise
• Risks and benefits of international joint ventures
• Strategic alliances
• Key success factors

Additional information

Teaching notes are available for professors. Contact the HEC Montreal Case Centre.