Greater integration between the State and the business sector is essential to exploit the opportunities offered by the region's investment projects.
During the World Business Forum Latin America 2014, held in Guatemala, entrepreneurs from different sectors pointed to the need for increased connectivity and commercial traffic between South America and Central America, in order to take better advantage of investment opportunities in each of the countries, through the use of public-private partnerships.
The plant is owned by the company Mayor Servicios SA (Masesa) and assembles the Indian Bajaj brand using 55 operators. 70% of its production targets the Guatemalan market, while the remainder is sent to Masesa distributors across the isthmus .
Overcome weaknesses, build strengths; partnerships between companies to achieve vertical or horizontal integration is a good bet for growth.
Some of the forms of horizontal integration that business partnerships assume are to reduce costs by purchasing a pool of supplies, market exports as a whole and consolidate to lower freight charges. Vertical integration is usually more complex, requiring each of the partners to specialize in specific business sectors to achieve productive linkage. The common denominator is the desire to overcome weaknesses and generate strengths through a partnership perhaps with the company that up until yesterday was your competition.
The recovery in tailoring and textile exports is due to cost savings generated by specialization in niche markets and from the integration of the production line.
Data from the Central Reserve Bank indicate that, in 2008, assembly exports increased 12.5% compared to 2007. This growth was encouraged by the specialization of different businesses, which has favored the vertical integration of the sector.
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