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.

• 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.

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