Foreign Direct Investment in Mexico - A Case Study by Starfish*Global
Client: A quarry in the heart of Pennsylvania
Goals: Expand client base in USA by offering products not found locally.
Background: Client is a local provider of blue stone, located in Pennsylvania. The unique and beautiful blue stone captures les tan 5% of the US Market. Client needed to tap into the other 95% market share. During a trip to Mexico, blue stone quarry owner visited other suppliers and found beautiful ornamental stone such as marble, granite, and onyx in colors and patterns not found in the USA. The idea to tap into the 95% market was quickly explored.
Strategy: To help this client with expansion of its market share, Starfish*Global concentrated on the following:
- Reach out to government entities (i.e. ProMexico, US DOC)
- Conduct research and risks analysis
- Prepare a start up plan and budget
- Serve as the lead consultant in the Foreign Direct Investment
- Open communication channels between client and local providers in Mexico
- Design a step-by-step process flow of imports from Mexico to USA
- Develop partnerships to facilitate the import process
Tactics: Starfish*Global monitored the process of setting up a subsidiary in Mexico that would facilitate imports/exports to USA. Starfish*Global engaged professionals such as lawyers, accountants, interpreters, and agents to develop a solid network of service providers. Starfish*Global began to identify team members to support the new business endeavor.
Results: A new entity was born in Mexico. Starfish*Global helped client achieve a presence in a new geographic region and strengthen presence in the US market with unique products. The Mexican start up helped the local Mexican economy by buying raw materials and finished products, as well as hiring the services of vendors, craftsmen and professionals. Ultimately the company was able to offer unique and high-quality products at competitive prices. Client has in fact tapped into the 95% market share that was previously untouchable.
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