The challenge: from a saturated market to new horizons
Coastal protection, erosion control, soil desealing: all of these critical measures in the fight against climate change are virtually unthinkable without geosynthetic materials. For nearly 50 years, BontexGeo has been at the forefront of this field, developing, producing, and selling high-quality woven and nonwoven geotextiles. The company has thus grown into a leading player across Europe. But the European market is gradually becoming saturated. To keep growing, further international expansion is a must. Management is therefore looking toward Latin America, a market with strong prospects: increasing infrastructure investments, growing environmental awareness, and rising demand for specialized solutions.
While the potential is clear, the approach is far less so: Which country in Latin America offers the greatest opportunities? What delivers the most value over time: pushing standard products or developing project-driven solutions? And how do you organize your supply chain in a competitive way?
A three-step approach: where, what, and most importantly, how
BontexGeo’s first tentative steps into the Latin American market quickly made clear that a straightforward export strategy would not be sufficient. The company needed a well-thought-out growth strategy in which market, product, and supply chain are fully aligned.
The perfect challenge for a group of Master’s students in Global Supply Chain Management at AMS. They set to work and, step by step, developed a feasible and effective supply chain strategy as a lever for BontexGeo’s growth:
1. Where? To narrow down the vast and diverse Latin American market, the students conducted an objective analysis of economic, regulatory, and geographic factors. This analysis identified Chile, Colombia, and Mexico as the most attractive countries for BontexGeo.
Digging deeper, the students carried out qualitative research into the geosynthetics market. Colombia in particular–with its overflowing landfills and aging road infrastructure–showed strong demand for geosynthetic solutions in the short and medium term.
2. What? Not only where, but also what you bring to market is critical for an effective growth strategy. Should BontexGeo enter the Latin American market with standard products, typically characterized by low margins and high volumes? Or should it focus on project-driven solutions that offer higher margins but also require more support and organization? While both approaches are viable, a focus on project-driven solutions better aligns with BontexGeo’s ambition for sustainable growth.
3. How? This approach, however, requires a different kind of supply chain. A traditional strategy focused solely on exports puts the company too far from the customer to offer tailored solutions. Local sales and production offer much greater flexibility but come with significantly higher risks and investments. The students carefully weighed all options to design a supply chain model that is both feasible and effective, tailored to BontexGeo’s needs.
The solution: the best of both worlds
We knew the potential in Latin America was significant, but finding the right approach proved complex. The AMS students brought market, product, and supply chain together into one cohesive strategy. The hybrid model they proposed gives us the flexibility to grow without taking on unnecessary risks.” – Thomas De Staercke, Commercial Excellence Manager at BontexGeo.
Rather than choosing a single approach, the students proposed a hybrid model: partnering with an external party in Colombia to build local inventory, complemented by third-party logistics providers for transportation in Chile and Mexico. This combination allows BontexGeo to respond quickly and flexibly to local market demand without taking on major risks or heavy upfront investments. The model is also scalable, growing alongside both the market and BontexGeo’s ambitions. To support this, the students developed a detailed five-year plan.
In this way, the extensive list of questions at the outset was transformed into a clear, well-founded, and actionable strategy.
