Elec case study
ELEC CASE STUDY
The strategies applied by ELEC up to the current moment.
ELEC is a company specialized in the manufacturing of medical equipment. Their main electronic equipments are electrocardiographs and spirometers, and they focused their production on Turbine spirometers over Fleisch, as the main goal of the company is to provide the highest quality possible. ELEC has decided to go international and start to export, as they the last 2 years won 90% of all public competition on the domestic market and almost the same regarding the private competition, which has made it difficult to grow even more on this market. So their fundamental market strategy is to grow by expansion to other international markets, instead of for example develop their product.
They have very little experience with exporting their goods and have until now only sold directly to other companies or doctors, who already knew their products or the high prestige of their company in Spain. The goal is to reach a turnover of 3.005.000€ over the next 5 years, which is approximately 67% higher than the current turnover of 1.800.000. Because of their lack of experience in the international market, they have decided to focus on only 3 potential markets in South America, Chile, Argentina and Brazil, which will make it easier for them to analyze the best business opportunity and find a distributor there. The countries may be far away, but they are all similar in some way to Spain, mostly regarding the language, as both Chile and Argentina speaks Spanish, which will make the communication easier and Brazil speaks Portuguese, which is similar to the Spanish language. Argentina and Brazil are also a part of Mercosur, which for the company is an attractive platform to go in to.
The human resource within the company dedicated to the export is a new export manager that ELEC has decided to create and consolidate to help them achieve their goal and determine which export market to choose and find
The strategies applied by ELEC up to the current moment.
ELEC is a company specialized in the manufacturing of medical equipment. Their main electronic equipments are electrocardiographs and spirometers, and they focused their production on Turbine spirometers over Fleisch, as the main goal of the company is to provide the highest quality possible. ELEC has decided to go international and start to export, as they the last 2 years won 90% of all public competition on the domestic market and almost the same regarding the private competition, which has made it difficult to grow even more on this market. So their fundamental market strategy is to grow by expansion to other international markets, instead of for example develop their product.
They have very little experience with exporting their goods and have until now only sold directly to other companies or doctors, who already knew their products or the high prestige of their company in Spain. The goal is to reach a turnover of 3.005.000€ over the next 5 years, which is approximately 67% higher than the current turnover of 1.800.000. Because of their lack of experience in the international market, they have decided to focus on only 3 potential markets in South America, Chile, Argentina and Brazil, which will make it easier for them to analyze the best business opportunity and find a distributor there. The countries may be far away, but they are all similar in some way to Spain, mostly regarding the language, as both Chile and Argentina speaks Spanish, which will make the communication easier and Brazil speaks Portuguese, which is similar to the Spanish language. Argentina and Brazil are also a part of Mercosur, which for the company is an attractive platform to go in to.
The human resource within the company dedicated to the export is a new export manager that ELEC has decided to create and consolidate to help them achieve their goal and determine which export market to choose and find