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Market Expansion at cms electronics
Case 9 00 2015 002
Case published in the International Journal of Case Studies in Management, Vol. 13, No. 2
Author : 
Languages : 
  • English
Keywords: 
  • Electronics industry,
  • Cross-border cooperation,
  • China,
  • SME internationalization,
  • International joint venure
Year of production : 
2014
Registration date : 
2015-03-27
Teaching notes included : 
Yes
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.

Primary domain : 
International business
Secondary domain : 
Management  - Entrepreneurship
Sectors : 
  • Professional, scientific and technical services,
  • Manufacturing
Source : 
Elsewhere
Type : 
Traditional case (Decision-making case)
Type of data used in the production of the case : 
Factual data that is not public wherein the identity of the company/person is disclosed
Event location : 
Austria (Europe)
Year of start of the event : 
2014
Year the event ended : 
2014
Business size : 
Medium-sized enterprise
Main themes covered
  • Internationalization of resource-constrained medium-sized companies;
  • International joint venture;
  • Optimizing global supply chains;
  • Building integrated cross-border value creation systems
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.
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