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Case
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Reference no. HEC104
Published by: HEC Montreal Centre for Case Studies
Originally published in: 2015
Version: 27 March 2015
Length: 24 pages
Data source: Published sources

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.

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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.

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