Case 239 - Tomen Assesses Chemical Export Opportunities in Latin America

Ryan, Michael P.

This case study describes the approach of Tomen, one of Japan’s nine “sogo shosha”—large, integrated trading companies—to assessing opportunities for chemical exports to Latin America. It also surveys the chemical business; offers salient economic, political, and social characteristics of the key Latin American countries; and provides a political economy context for understanding the emerging markets phenomenon of the 1990s. This case is best used as an introduction to export design after discussing the relationship between corporate strategy and global competition. It could be followed with readings and studies regarding foreign market development (which includes detailed analysis of social patterns and consumer behavior, as well as distribution channel issues), import barrier analysis, export logistics, and export financing.