In Maseru, the capital of the Kingdom of Lesotho, the stirrings of industrialization and modernization were promising, and more than 50,000 workers, mostly women, were used in the textile industry, the figure reflects more than tripled in just a few years to increase. Just outside Maseru, but life was pastoral. 1.9 million citizens of Lesotho, 86% engaged in subsistence farming. The country hopes to progress rested with the work of the Taiwanese and Chinese companies created. In e … Read more »

In Maseru, the capital of the Kingdom of Lesotho, the stirrings of industrialization and modernization were promising, and more than 50,000 workers, mostly women, were used in the textile industry, the figure reflects more than tripled in just a few years to increase. Just outside Maseru, but life was pastoral. 1.9 million citizens of Lesotho, 86% engaged in subsistence farming. The country hopes to progress rested with the work of the Taiwanese and Chinese companies created. In early 2006, however, depended the survival of the emerging industry in limbo. The appreciation of Lesotho, the loti, made life difficult for the clothing company, which exports almost all its production to the United States. Although the company enjoyed duty-free access to an otherwise protected by the U.S. clothing market African Growth and Opportunity Act, the provisions that most Lesotho benefits would expire in 2007. Make a few large buyers would sourcing decisions could make or break Lesotho industry. Local union leaders were upset with the government’s handling of the textile boom and its supposedly imminent failure. Surely the government would play an important role in the formulation of a strategy and the adaptation of the institutional context, but the choices of unions, foreign investors, foreign buyers and the American government would also be critical. How would the posterity judge Lesotho’s first encounter with the world markets – as a triumph or a disaster
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from
Rawi Abdelal,
Regina Abrami,
Noel Maurer,
Aldo Musacchio
Source: Harvard Business School
26 pages.
Release Date: 9 March 2006. Prod #: 706043-PDF-ENG
Market and the Mountain Kingdom: Change in Lesotho textile industry HBR case solution