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Looking Beyond the Horizon : A case study of PVH’s commitment to Ethiopia’s Hawassa industrial park (Inglês)

Textile and Apparel production is seen as an important catalyst for developing countries’ industrialization. It has played an important role as a springboard for economic development and, due to its low fixed costs and labor-intensive manufacturing, is often a starter industry for countries seeking to industrialize. The story of how the PVH Corp.(PVH) came to lead a group of its top suppliers to build factories and a fabric mill in Ethiopia’s Hawassa Industrial Park (HIP) is the study of a strong collaboration between a private company looking to optimize its business model and a government aiming to transform its economy through global strategic repositioning. This case study explains a private investor’s site selection process. It assesses the elements PVH prioritized when deciding to commit to Ethiopia, and specifically to HIP. The case study further assesses the government of Ethiopia’s strategy, level of readiness, interest, and commitment, and sets out some key challenges that lie ahead for this partnership. The case study is structured in eight sections. Section II offers a brief background on the textile and apparel industry, including an explanation of its value chain. Section III describes the site selection process: PVH´s initial explorations in Africa, its consideration of several African countries, and its initial conversations and negotiations with Ethiopian authorities. Section IV discusses the Ethiopian government’s strategy to attract and expand export-oriented investments, including efforts to bolster the country’s competitiveness. Section VI covers the challenges that lie ahead for this project, potential setbacks that will affect not only the consolidation and growth of the textiles and apparel industry in Ethiopia, but also the government’s vision of becoming the Manufacturing powerhouse of Africa. Section VIII concludes with some key lessons from PVH’s decision to invest in Ethiopia.


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    Mihretu,Mamo Esmelealem, Llobet,Gabriela

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  • Nome do documento

    A case study of PVH’s commitment to Ethiopia’s Hawassa industrial park

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