Microbloc starts fuel filter/water separator in the China market in 2005. China market has provided limitless growth potential for Microbloc . Microbloc is establishing a new growth basis through active foreign expansion. Through expanding into foreign markets, Microbloc is competing with the global fuel filter/water separator companies and increasing the production capacity and distribution network in line with the increasing demand of fuel filter/water separators. By utilizing the geographical advantage or the first mover advantage into China, Microbloc is rewriting the history of the China fuel filter/water separator industry. Microbloc plans to have the best in the industry. As the Chinese market is expected to grow continuously, Microbloc has established on the R&D center on site to appropriately respond to the product development requirement of the Chinese market. The production base in the Asian market where Microbloc is continuously expanding has the advantage of the foreign frontier base and the easiness of approaching the domestic market. The Asian market has a key role in export frontier base with the abundant labor and scarcity in natural resource and has strong domestic market potential, and considered the perfect location to realize the global strategy of Microbloc . To explain about the foreign outsourcing effect, first it improves the cost competitiveness not just for the labor cost but for the raw material acquisition cost, that has a big effect in cutting the distribution cost. Second, in the marketing/sales investment aspect, the foreign movement into the newly developing market enables Microbloc to have the first mover advantage in the applicable countries and improve the brand image to expect high growth, which are considered as very positive elements. As mentioned, through the active foreign expansion into China, Microbloc is building a new growth base. Through foreign market development, Microbloc is completing against the global fuel filter/water separator makers and is expanding the production capacity and distribution network to cope with the increasing fuel filter/water separator demand. |