Ivey Publishing
Electrosteel Castings Limited
Product Number:
9B02D016
Publication Date:
10/29/2002
Revised Date:
08/21/2018
Length:
16 pages (9 pages of text)
Product Type:
Case (Field)
Source:
Ivey
Electrosteel Castings Limited, based in India, had been the largest domestic manufacturer of iron pipes for over four decades. Although it had achieved solid growth in recent years, the market was under increasing pressure as overall growth slowed and new competitors entered the market. The chief executive officer believed that international expansion was critical to future growth and would also provide additional currency for further investment in new process technologies. After extensive study, management had narrowed the options to Europe (France) or Southeast Asia (Vietnam). Given limited resources, Electrosteel could only enter one market, either with a new marketing office or a new manufacturing plant. Building an overseas plant was particularly attractive, as it would effectively translate into Electrosteel being considered a local competitor in that market, reducing costs and improving customer service. In recent weeks, the need for a decision had increased significantly, as management had become aware of foreign competitors investigating similar international expansion options. (A video highlighting the manufacturing process of the iron pipes is available, product 7B02D016.)
Issues:
Disciplines:
International,  Operations Management
Industries:
Manufacturing
Setting:
India/France/Vietnam, Large, 2001
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Use With: 7B02D016 (9 min)
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