Market Expansion at cms electronics
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.