Case Study Of ADG Internationalization

The case study presents an interesting insight into the growth of ADG from a domestic growth of ADG from being an importer to domestic production and to become an international firm. Having the knowledge and experience of the domestic market, the firm’s domestic growth is dominantly based on the expansion strategy of the business transiting from import business to domestic manufacturing. Though the BIP industrial policies have played a major role in this expansion but the firm’s ability to develop a strategy to respond to emerging opportunities could be regarded as a major contributor to this growth process. However , ADG exploitation of its extensive market knowledge, given that the market position of the firm prior to domestic production. …show more content…
In the case of ADG its ownership advantage include market knowledge, sectoral experience, resources and capabilities, physical and financial assets, managerial know-how, brand name, competitive advantage and home market advantage. Also, firms’ with high ownership advantages at home will be motivated to internationalise and compete more strongly in a foreign market in conjuction with location advantage. The location advantage that enable ADG to internationalisation include the attractiveness and investment opportunities in the region of ECOWAS and SSA, that enable ADF to exploit their ownership advantages in those locations. The location advantage and ADG ownership advantage beame the primary motives for internationalisatio. ADG internationalisation motives was to have a strong regional presence in markets with growing opportunities and potentials, this is to take advantage of the regional common market. Other motivations include the strong GDP growth, large regional population, rapid urbanisation and housing deficit in the region, infrastructure development and lack cement production in most countries in the region. This firm investment in the region was also driven by the fact that SSA is seen as the growth region