Maquiladoras in the 21st century: Six strategies for success Case Solution & Answer

The maquiladora industry has been designed as a win-win economic strategic platform for foreign companies and Mexican workers. The main beneficiary was U.S. companies became more profitable by employing highly productive workers a Mexican lower cost. However, the direct relationship between the U.S. economy and corresponding employment Mexican workers has resulted in unpredictable cycles decreased growth. While the globalization of trade has increased dramatically, the maquiladoras have been slow to adapt to new market realities, including the emergence of China as a world power manufacturing. Increased global competition and the recent financial crisis challenged the structural weaknesses of Mexico and the maquiladora model that focuses on the labor cost. Maquiladoras can remain viable in this seemingly unpredictable economic environment? This article presents a brief history of the maquiladoras, discuss the new realities of the external trade environment, and offer six strategies that can transform maquiladoras on a sustainable business model in the future.
by
John Hardjimarcou,
Lance E. Brouthers,
Jason P. McNicol,
E. Donald Michie
Source: Business Horizons
11 pages.
Date Posted: March 15, 2013. Prod #: BH522-PDF-ENG
Maquiladoras in the 21st Century: Six Strategies for successful resolution of the case

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