Shanghai Toex Trading Co.: The Going Global Challenge
(7 pages of text)
Shanghai Toex Trading Co., Ltd. (TOEX) was a Chinese pet grooming equipment maker. In 2014, after years of operating internationally solely through third-party distribution channels, TOEX opened a new sales and logistics centre in Dallas, Texas to boost TOEX’s business in the United States. The new centre was also meant to be a model for future expansions to other countries. With more than a decade of industry experience, TOEX's founder believed that succeeding in the United States was critically important for the company’s future. However, he was not sure how to execute a successful international growth strategy and how to best leverage the new U.S. logistics centre.
This case may be used in undergraduate or graduate courses related to transnational management. Instructors will find the case useful for illustrating challenges confronted by small and medium enterprises (SMEs) when internationalizing from an emerging market. The case can be taught with an international business focus, as part of a business strategy class, or to illustrate entrepreneurship versus corporate mindsets in business. Students can assess TOEX’s advantages and weaknesses as a typical SME attempting global expansion from an emerging market. Students can also identify the opportunities and threats TOEX is facing after setting up its U.S. subsidiary in 2014. Students may then discuss the strategy TOEX might use early in its growth to build its competitive advantages as a transnational company.
United States; China, Medium, 2014
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