Relats Case Study

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1.) Considering RELATS features, such as its size (and limited financial resources) and family ownership: a.) Recommend Joan Torres the appropriate entry strategy in order to foster the company’s international expansion and achieve the following objectives: access to North-American market, access to Middle East market, and access to Southeast Asian Market. Since 1980 Relats has experienced remarkable international expansion considering the small size of the company, with only 14M € turnover and 100 employees. Its use of advanced technologies has successfully increased its growth opportunities in recent years and has enabled Relats to produce high added-value products. Another feature that has been key to the company’s development is family ownership, with the Torres family controlling 100% of Relat’s equity. With the company’s impressive technological innovation and quick development, and the high investment associated with these structural transformations, Relats has relied heavily on international expansion in order to increase efficiency and production capacity. Currently 90% of Relat’s total turnover is related to business abroad; the company exports to over 40 countries, with Europe comprising approximately 80% of these exports. In Europe, Relats has traditionally relied on an entry strategy based on several distributors of electric appliances, who purchased and resold the products in the target country. For car industry clients, Relats opted to use sales agents which represented several brands besides Relats. Thus Relats has already established a strong presence in Europe through distributors and sales agents, and has contact with transportation companies in these markets. However, Torres is now looking to expand into new markets, namely North America, the Middle East, and Southeast Asia. • North America: After a strong investment Relats

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