Portico
1. Current strategy & results
Promotion: not mentioned
Product: wooden doors from Costa Rica
Price:
The current strategy focuses mainly on the low price of the product. The market for wooden doors, especially for high quality doors, is little to small in Costa Rica, so that is why the company is exporting to the US. Furthermore the financial condition of the company was very bad, so they had to make profits in short period of time, which explains the low price strategy and the big chain distribution, that makes it easy to get economies of scale in a short time.
Also the company just pays a small price for its raw materials in Costa Rica, which makes it easy to maintain a low price strategy in the US market.
The doors of the company are in the lower price category for wooden doors, but they seem to be superior of those doors from the competition concerning quality.
Place:
The company is involved in an intensive distribution through big chains of building supply retail outlets. To utilize the new built plant the company had to produce and sell at a high volume to the US by exporting. By this strategy they try to target the mainstream US market with their product.
Results:
The company had problems with financing the new plant in the beginning. But with the established building supply retailer contracts in the US and their high volume of exports they got back on track and reached a break even on a cash basis recently.
2. plans for the future
The future strategy is to serve a special niche in the US market by selling higher priced doors through regional distributors, who then sell the doors to the customers. This new strategy focuses on a higher quality product that is sold with a higher price. It also emphasizes on the service factor of the specialized retailers, who target a different type of customer. Instead of a one-stage distribution channel this would be an example of a two-stage distribution channel strategy, which implies a different pricing strategy. The selective distribution of the new strategy would possibly give their product a new, higher quality image and get the customer more service.
3. Why change market positioning?
The company has the opinion that their product is of a higher quality and could be sold with a higher price than current. They want to change their positioning because they want to target a different customer group that is more concerned with quality wooden doors.
Internally the strategy moving forward was unclear. The chance to address 25,000 dealers demanded the new leadership had a clear picture of their mission moving forward. With a very narrow scope of product offerings and the slowing sales of their high-end speakers, the decision to expand into additional products, or stay focused on their main revenue source would determine the future of the company. Offering their product in the large retailer market and pulling away from the independent installers had already damaged their brand equity. Furthermore, engaging with the production home builders, while generating the necessary revenues for survival, alienated the custom installer and their referral clients. (Kerin & Peterson, 2013). Considering the relatively small size of the company combined with the dangers associated with brand extension could overstress the resources necessary to launch and maintain a new line. One of the keys to a successful concentric diversification is close coordination with existing customers and distributors. Unfortunately, the dealers that had made them successful were not pleased with their recent brand dilution. (Gordon,
Masco Cabinetry’s mission has always been to “Be the market leader in providing kitchen and bath solutions with meaningful innovation for customers, designers and consumers” (Employee Handbook, 2012). The company has been achieving success in one or more of those areas for the past 68 years. Each year Masco Cabinetry has developed new door styles, finishes, and products to meet the demands of homeowners and home builders.
For exemple they had issue to open in Mexico creating multiple problems for the agrofood sector but as well by reducing the foreign investment in the country. This has created a huge scandal all over the news, encountering the human rights of the population living in the area but as well the environmental problems linked to this partnerships with notorious mexicans real estate agent making this opening not really
Among the multitude of American corporations, few stand out like the United Fruit Company. Reviled the world over, United Fruit was one of America’s most notable early multinational corporations. Operating all over Latin America and peddling their produce across the globe, United Fruit would get its start in Costa Rica, a small Central American country nestled between Nicaragua and Panama. The decision to attempt to modernize Costa Rica by General Tomás Guardia would prove to be a fateful one that forever altered the course of Central America.
Weyerhaeuser is a company that is based solely on trees. Literally every aspect of the company is based around producing, cutting, studying benefits, or has something to do with trees. The local brand here is magnolia is focused exclusively on the process of seeds, planting of seeds, and relocation of saplings. They have orders placed with them and in turn place orders to get what seed they do not already grow and produce. They turn the seed they get or already have and start a baby tree and resale or plant those trees.
Overall, Target is financially stable and it has the capacity to invest in an international expansion project. Also as we examined, Panama its currently in a position of economic growth, and embraces foreign investment. Even though the American culture is different from the Panamanian culture, we are confident that with the recommendations, Target will be able to succeed in Panama. Specially, if they hire the local legal and marketing team, which will help them infiltrate the market and use their business model as a competitive advantage.
strong global presence tha t dates back to 1882 when it opened a plant in
... This could become the third solid country of operation that Costco needs to offset its increasing costs. Strengthening the Costco name in its burgeoning market of Mexico will help offset merchandising costs by increasing store loyalty and sales. By increasing its market share in Mexico, Costco will be able to have more income to offset the merchandising costs and it can then have the necessary capital to continue its growth; thus solving key issues 2 & 3.
Being the leader in its industry, the company has capitalized on the large market capital and is opening up to foreign countries where organic food is appreciated.
The overall goals are to create business opportunities in direct relationships with American investors. This will also create many jobs and business opportunities for our company, Paraguayan manufacturers of hand-made products, and also for the American people.
Plant/R&D locations: To keep costs low, the company operated in different geographical locations like China (manufacturing) and India (R&D).
High price in imports. Because our main ingredient is imported from the U.S., the exportation and freight costs are higher than those compared to a local company.
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
withstanding a large recession, and commanding high market share. In the last five years, the company’s
The market is not ready yet for more product lines even though the economy is growing because the purchasing power is not that strong compared with the ones in South America. Therefore there is not yet profit to gain by di...