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Metalfrio: Achieving Global Leadership in the Plug-in Commercial Refrigeration Industry Case Solution

Solution Id Length Case Author Case Publisher
1355 447 Words (2 Pages) Alvaro Cuervo-Cazurra, Flavia De Magalhaes Alvim Ivey Publishing : 9B13M012
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One of the major issues faced by the company is the selection of a country in Asia to target for its expansion plan and developing joint ventures in the same. Metalfrio has several options in Asia including China, India, Pakistan, and Vietnam. The initial operation in Turkey had resulted in a failure that shows that the strategic selection of a market is crucial. Furthermore, the Asian market is diverse and selection of a partner for a joint-venture agreement needs to take into consideration the industry environment. In some countries like India and Pakistan, there are sophisticated players in the market that have well-established positions. In China, the competition is tough; the opportunity that the company is presented with is highly risky. Metalfrio is not experienced in the Asian market whereas; it had an employee who was experienced in the Russian market leading to its success.

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Case Analysis for Metalfrio: Achieving Global Leadership in the Plug-in Commercial Refrigeration Industry

Highly developed markets require substantial investment to market the products as well as develop a market share in the country. These external factors impact the decision of expanding to the Asian market and capitalizing on the opportunities that it presents. China has a high export value of commercial refrigeration. This means that the market presents a substantial opportunity for refrigerator companies to capitalize on the opportunities and develop a market share. However, its increase in the years from 2005-2009 show that the other companies have capitalized on opportunities that refrigerated export items present. In Pakistan, the market for regenerator equipment has substantially decreased over the years, with the imports as well as exports decreasing. Therefore, expanding to China or Pakistan is not a feasible option for the company.

For choosing the right market that has a combination of opportunity as well as ease for the company to develop a market position is important. It should be done on the basis of the competition in the country in the refrigerator industry, and on the basis of exports that require refrigeration equipment. The Indian market does not have fierce competition, and the GDP is relatively high that presents a favorable economic condition for the country. There are sophisticated players in the industry that are likely to form partnerships with a well-established brand such as Metalfrio.

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