Subject category:
Production and Operations Management
Published by:
Kühne Logistics University
Version: 8-Apr-2021
Length: 8 pages
Data source: Field research
Topics:
Clothing industry; Textile and apparel industry; Logistics and supply chain management; Developing countries in Africa; Fashion and retail; Governmental regulations; International logistics; Logistics network design and management; Economic growth strategy; Foreign market entry; Bangladesh; India; International transportation cost; Industry parks; Cost calculation
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Abstract
The Ethiopian economy is on the rise and is currently one of the fastest growing economies in the world. By 2025, Ethiopia wants to become the manufacturing hub of Africa. To maintain growth, the Ethiopian government heavily supports industrial development in different core industry clusters - of which the textile industry is without a doubt one of the most promising. To boost the local textile industry, Ethiopia supports the development of dedicated industrial parks in multiple regions of the country. It currently attracts global textile manufacturers from all over the world. To support those manufacturers in locating their production sites in Ethiopian industrial parks, they are offered a convenient one-stop-shop service concept along with tax exemptions. This case analyses two sides of the same coin. On one side, the Ethiopian strategy to attract foreign manufacturers is outlined; on the other, the case presents the example of an Indian textile manufacturer that has utilized the opportunities provided and located a production site in Ethiopia. The case outlines the supply chain and production process of this manufacturer and discusses the challenges of ramping up its production. Based on the analysis of both sides of the coin, we discuss pathways for merging the two sides.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Africa
Countries:
Ethiopia; India; United States; Djibouti
Location:
Mekelle
About
Abstract
The Ethiopian economy is on the rise and is currently one of the fastest growing economies in the world. By 2025, Ethiopia wants to become the manufacturing hub of Africa. To maintain growth, the Ethiopian government heavily supports industrial development in different core industry clusters - of which the textile industry is without a doubt one of the most promising. To boost the local textile industry, Ethiopia supports the development of dedicated industrial parks in multiple regions of the country. It currently attracts global textile manufacturers from all over the world. To support those manufacturers in locating their production sites in Ethiopian industrial parks, they are offered a convenient one-stop-shop service concept along with tax exemptions. This case analyses two sides of the same coin. On one side, the Ethiopian strategy to attract foreign manufacturers is outlined; on the other, the case presents the example of an Indian textile manufacturer that has utilized the opportunities provided and located a production site in Ethiopia. The case outlines the supply chain and production process of this manufacturer and discusses the challenges of ramping up its production. Based on the analysis of both sides of the coin, we discuss pathways for merging the two sides.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Africa
Countries:
Ethiopia; India; United States; Djibouti
Location:
Mekelle