The case examines the “location and control decision” of Almax a world-known leading trade-mark in the production of mannequins and display forms. All Almax mannequins were made with polystyrene, that was longlasting and highly shatter-proof. Almax operated B2B (business to business) and could boast clients with renowned international brands, such as Hugo Boss, Prada, H&M, Guess, Ermenegildo Zegna, Versace, Benetton, Dolce&Gabbana, Diesel and MaxMara. In 2009, the CEO, Max Catanese, was deciding where to set up aproduction facility abroad: Vietnam or China? Anpai Shanghai Co., Ltd was the result of Almax’s strategy of internationalization in China. Established in the spring of 2010, Anpai Shanghai was a wholly-foreign-owned-enterprise (WFOE) with offices in the center of Shanghai and a 12,000 sqm factory in Fengxian, a suburb of the city. The company was a separate entity from Almax but it was nonetheless part of the Almax Group, leveraging on its forty years of experience in the design and production ofmannequins and display forms. The case describes why and how Mr. Catanese, decided to do an FDI in China instead Vietnam. The case reviews Almax’s China investment decision, providing recent information about the company and the market. To enhance the discussion experience and to stimulate students to prepare this case better, instructor may assign the task to gather extra data on China and Vietnam (in particular, industry level).
China vs Vietnam: Almax's Market Selection (A)
LOJACONO, GABRIELLA
2012
Abstract
The case examines the “location and control decision” of Almax a world-known leading trade-mark in the production of mannequins and display forms. All Almax mannequins were made with polystyrene, that was longlasting and highly shatter-proof. Almax operated B2B (business to business) and could boast clients with renowned international brands, such as Hugo Boss, Prada, H&M, Guess, Ermenegildo Zegna, Versace, Benetton, Dolce&Gabbana, Diesel and MaxMara. In 2009, the CEO, Max Catanese, was deciding where to set up aproduction facility abroad: Vietnam or China? Anpai Shanghai Co., Ltd was the result of Almax’s strategy of internationalization in China. Established in the spring of 2010, Anpai Shanghai was a wholly-foreign-owned-enterprise (WFOE) with offices in the center of Shanghai and a 12,000 sqm factory in Fengxian, a suburb of the city. The company was a separate entity from Almax but it was nonetheless part of the Almax Group, leveraging on its forty years of experience in the design and production ofmannequins and display forms. The case describes why and how Mr. Catanese, decided to do an FDI in China instead Vietnam. The case reviews Almax’s China investment decision, providing recent information about the company and the market. To enhance the discussion experience and to stimulate students to prepare this case better, instructor may assign the task to gather extra data on China and Vietnam (in particular, industry level).
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