INTERNATIONAL STRATEGY - CASE STUDIES
DELFINGEN
Background
Delfingen wished to examine opportunities to enter the South East Asian market as a supplier to the automotive industry in the ASEAN region.
Frenger's role
Frenger was asked to evaluate the market potential and the local competition by identifying and analysing wire harnesses manufacturers in the region. These competitors were also assessed as possible candidates for either a JV or to be acquired by Delfingen.
Conclusion
The conclusion at the time was that the regional market was not sufficiently developed for a new Western competitor. The Philippines was the only country where wiring harnesses manufacturers such as Lear had set up substantial plants in particular in the Cebu area. As a result it was decided that it would make more sense to acquire a supplier with existing sales in the region. Discussions were held with a Japanese automotive supplier considering selling its extrusion/injection plant in the Philippines. This transaction was not progressed and Delfingen eventually set up a greenfield plant in the Philippines after winning a significant global contract with Lear on the back of the acquisitions completed in the USA.
TOP
BACK
