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China Railway: A Localization Strategy in Nigeria

Xiaoqian Jiang, Su Liu, Paul W. Beamish

Product #:W44150
Supplier:Ivey
Discipline:General Management, Strategy
Setting:Nigeria, 2023
Details:Case (PDF) • 12 pages • 2025-05-01

Subjects:

Leadership and managing peopleManagementStrategy

Industries:

Transportation and distribution

Geography:

NigeriaAfrica
Your Price:$10.54

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On May 22, 2023, the first railway freight train assembly plant in West Africa went into operation. The Kajola wagon assembly plant was built in Nigeria to meet needs specified by Nigeria’s Ministry of Transportation. China Railway Rolling Stock Corporation (CRRC) provided the technical support and supplied the freight trains.

The project was not easy to achieve as a localized project, but it was an important milestone in the development of modern railways in Nigeria. It not only provided Nigeria with locally made railway wagons but could also provide technical support for railways across sub-Saharan Africa. How could CRRC move this project forward, avoid risks, meet customer needs, and achieve better international development?

Learning Objectives

This case examines the localization strategy of a multinational enterprise and is appropriate for undergraduate and graduate students in international business and marketing. The focus is to determine the motivation of the enterprise to enter an international market, the reasons for adopting a localization strategy, and the resource advantages, disadvantages, opportunities, risks, coping strategies, and successful experience of implementing a localization strategy. Working through the case and assignment questions will allow students to undertake the following:
  • Apply the ownership, location, and internationalization (OLI) paradigm to comprehensively evaluate the overseas investment decision-making process of multinational companies.
  • Analyze the reasons why local governments often prefer to find import substitution and why CRRC adopted a localization strategy.
  • Use the strengths, weaknesses, opportunities, and threats (SWOT) model to analyze CRRC when implementing its localization strategy.
  • Summarize the antecedents and consequences of successful localization.
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Case Study: China Railway: A Localization Strategy in Nigeria (English version) | Ivey Publishing