International Marketing

1) What are the competitive strengths of Davila Bond as a company? The company’s competitive strengths include exploiting the principles of the four P’s, which lead the company to their four possible directions. Davila Bond plans on expanding international. When measuring the competitive performance of the company’s efforts and profits, brand loyalty impacts the product or service success. Exploring multiple options during the expansion process provides an opportunity to utilize the current laws and regulation involve with the international expansion.

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As a company, David Bond has a wide range of competitive strengths that contribute to the success of major sweater exporting. One of the competitive strengths would have to be the ability to operate his specialized weaving machinery 24 hours a day, 7 days a week, and 365 days a year. This ability is very unique and is due to Davila-Bond’s well use of the available technology. This technology gave him the ability to invest in this well designed weaving machinery, which in return to increases its production by 20 percent. The increase of its total of units sold because they can produce more for the market and supply its demand for the company’s product.

Technology remained a very important competitive strength within the company, using “supersoft” technology, which is a cheaper costing procedure that gives the sweater the same quality soft feel as any of the leading technologies and its also lower maintenance. This technology is very beneficial to the customers because it saves them money and gives them option to wash the sweater in their home washing machine versus paying for dry cleaning. This use of technology would give any company a competitive strength in any foreign country and is not just limited to the Latin American market.

2) What are the advantages and disadvantages of each of these options? The advantage of expanding further into the home country provides brand recognition among the consumers of their product. Brand recognition among the community improves the efforts toward promotion techniques. Expanding in other Latin American countries preserves the culture of the product or services. The consumer of the goods attitude is comfortable based on the knowledge about the product. Understanding the factors such as technology and communication skills, improves the overall transaction in business deals.

Expanding in Mexico would allow the Ecuador Company to exploit the free trade negotiations that Mexico and Ecuador started in 1996. Expanding in United States would be a major disadvantage for the Davila Bond management team due to the competition of the same product being offered in the United States. Brand loyalty is low in America unless your company is in the mature stage of the company’s life cycle. Expanding in Europe will create major increase in their transportation budget relating to the shipment from the product from country to country. The travel time to Europe will create delays and culture boundaries that will impact the success of the company overall goals.

3) What marketing tools and marketing data would you need to accurately make this decision? Using demographics such as age, gender, ethnicity, cultures and values improves the guidelines that you design to utilize the marketing tools toward the decision. Grouping segments of consumers targets the most profitable opportunities. Attitudes and believes of the individuals impacts the performance of the companies operations. Utilizing the information from the Research and Development department accurately determines the decisions involved with conducting marketing data research.

Also, Using cost-benefit analysis to quantitatively analyze your decision options. Cost-benefit analysis is appropriate when deciding whether to spend money on equipment, additional inventory, additional employees and other financial planning decisions. It involves first figuring the cost of each option and then projecting the value of the benefit it will provide. When running a business, you may be more or you may less conscious of your limitations, you’re worried about what you’re completely unaware of but you need to know the answers to what you are unaware of. You can use business research as a tool to aid in making decisions to confidently conduct a feasible trade. Business research, also called market research, is a tool or process of pulling together information to run your operations intelligently.

4) What do you recommend that they do and why? I recommend that the Davila Bond management team choose the option to expand in Mexico and other Latin American countries to maintain the availability of success. Quality is achieved from analyzing results and implementing the strategies at the right time. Optimizing the performance of the business includes standards and guidelines to improve the expansion from Ecuador to surrounding countries. Research will provide the amount of supply demanded through different channels of consumers.

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