The Electric Company Case

1294 Words 6 Pages
Given the current outlook of the lithium-ion battery market, it is time for The Electric Company (TEC) to make its next great leap: an international venture. The coming growth of the electric vehicle industry and the feasible landscape for TEC’s rise to market dominance makes now the time to move. Then, since the decision for expansion seems to be nothing more than an afterthought at this point, the question becomes where? Based on a number of exogenous factors, as well as intrinsic qualities, the two most viable and fruitful possibilities are Chile and Shenzhen (Southeast China). Before jumping into the two candidates, it is important to address the main strategic considerations that drive TEC’s production decisions in order to provide a …show more content…
Chile also offers a large educated and skilled workforce. Because Chile has a literacy rate of 97.5%, according to the CIA, a high life-expectancy rage of 78.9 years, and a major proportion of its population being citizens of working age, TEC could benefit from locating the factory in a place with an already booming economy, robust workforce, and wages much smaller than other OECD countries. Furthermore, Chile’s already proven to make huge strides in adopting electric vehicle technology. In 2011 Chile introduced its first electric vehicle, the Mitsubishi i-MIEV, and ushered in its first charging station in urban city Santiago. And in 2013, Chile began testing for its first EV …show more content…
For years now, China has been known as “The World’s Factory,” and rightly so. A large part of why China has succeeded is because of its proper macroeconomic management and strategic economic and political development. The transition between political leaders had been incredibly polished and peaceful. It started with Deng Xiaoping, who had adapted the market economy in 1978 and paved the way for a capitalist future. After him, Premier Zhu Rongji was responsible for introducing China into the World Trade Center. Following Rongji, President Jiang Zemin, helped expand China’s economy and made its presence known throughout the world because of his policies that encouraged entrepreneurship and promoted businesses. And the current president of China, Xi Jinping, has made an effort to decrease the prevalence of corruption in the government and in the military as well as start a program to develop rural areas to eliminate existing development gaps, attempting to promote social equality. All of these leaders combined eventually led to an abundance of innovation and made China into a country that thrived on globalization, attracted foreign investors, and had a stable monetary and fiscal policy

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