CASE: Aspiring to Go Global: Unitech Engineers
European Case Clearing House (ECCH) - UK and USA, Case Study Ref. No. 812-016-1, Teaching Note Ref. No. 812-016-8, July 2012
Posted: 17 Apr 2012 Last revised: 13 Jun 2014
Date Written: July 7, 2012
Unitech Engineers, a manufacturer of high tensile fasteners, was established by the Modi brothers – one a commerce graduate and the other a technocrat with engineering and managerial degrees. From a small workshop, the company gradually crossed many hurdles, and by investing in technological upgradation and quality assurance systems, it grew to become one of the leading manufacturers of fasteners. With a fairly secured position in the domestic market and infusion of new blood in the management team, the company was now inspired from its success and was aspiring to expand its horizons beyond India. Ms Kruti Modi, the younger generation of the family, after doing a careful international market research decided that Unitech Engineers should now start exporting. Based on the primary research for international market selection Ms Modi had zeroed in on South Africa to begin overseas operations. The question, however, now aroused as how to approach the South African market and select a suitable and effective market entry strategy for a sustainable and scalable overseas business?
The primary objective of the case is to make management graduates understand the natural progression of a first generation entrepreneurial venture. They can also understand various hurdles a company passes through and the kind of decisions one has to make. Students will appreciate that investments in technology and quality systems are a must if a company has to progress over a certain level and then aspire to go global.
The issues involved in this case are about the vision of an entrepreneur, various stages through which a new business moves, investment options available to an entrepreneur and his ability to foresee the change in the market dynamics, his investment decisions (capacity expansion, technological upgradation, takeovers, etc.), and strategies to sustain and expand the business. With the inspirations from the success in the domestic market, the firm was now determined to go global over a period of time. Further, case highlights the need for international market research one has to do in order to select a country for export and underscores the market selection procedure for overseas marketing. The factors one needs to consider and how they are different from doing business domestically are discussed for determining suitable marketing strategies.
TEACHING NOTE also available: ECCH Ref No. 812-016-8.
Keywords: high tensile fasteners, family business and entrepreneurship, technological upgradation, global initiatives, South Africa, international market research and market selection, cultural barriers, global market entry strategies
JEL Classification: D21, F14, F23, L2, L62, M13, O32, O55
Suggested Citation: Suggested Citation