Andres Galino Harvard Case Solution & Analysis

Introduction:

Now days, it becomes extremely difficult for the companies to deal and sustain a new business in a competitive global market. New entrants have to face a lot of obstacles in the forms of competition and other business factors. Similarly, Andres Galindo faced severe situations and obstacles while creating his business for the Electra Sportswear brand. He launched this brand in the South American country known as Colombia. Colombia is famous for having conflicts with its regulatory bodies for more than forty years from now. Even so, the Colombian company Andres Galindo fights so much to attain success in financial terms. The owner of the company was known to be a lover of the business world and thus believed that the business market is full of potential. The Columbian market was so much involved in illegal and counterfeited products, but Andres refused to follow the illegal path and created a legal business that was legit, legal and worth the effort.

Problem Statement:

The case is based on a person named Andres Galindo, who belongs to upper middle class in the city of Bogota in Colombia. Andres with his brother Carlos was engaged in serving as the only importer of one of the most elite and top famous sportswear brand Electra. With the passage of time, the company was able to set many retail shops in the city of Bogota specifically in high-end malls and markets. Soon, they realized that the company is at a disadvantage in terms of cost because they import goods legally and thus have to pay tariffs of 120%. In order to counter this issue, both the brothers have decided to  take this problem as a marketing and retailing challenge and engaged the company in adding value by the help of the retail sales process. He decided to import the products directly and thus cut out the middle man. He has taken a big step and that might result in lower margins on a short term basis and now needs to build a growth strategy to deal with unfair rivalry and by targeting the small population.

  1. 1.      State the decision you are recommending and summarize the reasons for it.

Most of the companies who enter in a business arena aims to grow. Companies take every step that can increase their profits and that in turn will satisfy their shareholders. In addition to this, companies seek for profits to enhance the overall volume to make reductions in terms of cost as well. The main purpose behind growth and cost reductions is to achieve economies of scale. For instance, taking an example of Asos.com, the company is in continuous growth and thus needs a larger distribution and warehouse operation. As the companies grow bigger, they need to get better opportunities and deals from its vendors by making ordering in larger quantities. For companies to grow, there are several options available. One of the simplest ways for the growth is by selling more products. This type of growth is known as organic growth. Companies can also go for external growth by merging with other companies. Companies can grow to a much larger scale through external growth.

Decision:

The table below has shown that the most desirable alternative to choose is alternative number two that is based on forming and delivering a marketing and advertising campaign through which the company can inspire brand positions and communicate in a different way about the company’s products. In this way, the company can reach towards customers that might not come to the retail outlets of the company, but a company can reach towards them with the help of media and other sources. While choosing this alternative, the company can also go for social media marketing as well. By choosing social media marketing for its advertising, the company would be able to cater a mass audience at a time. In addition to this, the company can find ways of building brand loyalty with the customers because they would find original products better in terms of quality than the counterfeited products.

Other than this, the company can also find ways to improve the service level by encouraging open communication that can be possible through public comments. In addition to this, marketing campaigns that involve customers in it will lead to an increase in satisfaction level from the customer’s side and that in turn lead to high retention level..................

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