Strategic and Sustainable Internationalization in the Manufacturing Industry: The Case of Mega USA LLC and the Competitive Advantage of Paraguayan Nearshoring

Abstract

We analyze the internationalization strategy of Mega Plásticos SA, a company that leads the Brazilian magazine Exame ranks as the leader in the hospital disposable packaging products market for the Mercosur countries, by analyzing its recent expansion into the North American market through the creation of Mega USA LLC. To tackle its competitors, the company is employing a disintermediation strategy through Direct-to-Consumer and Business-to-Business models, its marketplaces, and the outsourced infrastructure it has set up in the US. The article also analyzes the competitive advantage that Mega is gaining in production, which takes place in Paraguay under the Maquila Law and with 100% green, renewable energy, as opposed to the traditional Asian import model commonly associated with social and environmental dumping. The sustainable nearshoring, high-quality products (sold without intermediaries), and the socio-environmental responsibility that Mega USA LLC is bringing to the operation are driving superior margins and sustainable competitive advantages in the high-demand markets in which it operates.