Essay about Onda de Mar

Satisfactory Essays
Onda de Mar: Catching the next wave
QUESTION 1. Pros and Cons

PROS OF THE EXISTING BRAND AND BUSINESS MODEL | CONS OF THE EXISTING BRAND AND BUISNESS MODEL (WITH POTENTIAL FOR IMPROVEMENT) | One of the two founders (Arango), wants to cash out the company. | The second founder (Queipo) does not want to sell. However this founder is the soul and designer of the company. | Onda de Mar is an internationally (30 countries) high quality and proven brand with high revenues ($4 million in 2006).Potential to increase revenues in Europe. | Onda de mar is in urgent need of cash to exploit the potential of the market. The big investment will be in improving the performance of the company, not in buying the share itself. | The growth of
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* Tribeca will have to invest a significant amount of money in changing the cons with potential for improvement mentioned above. |

How to create value in Onda de Mar? * Buy the share from Arango, and Keep the designer (Queipo) Persuade her to come back to Medellin, where the production facilities are. * Investing in improvements of the productions facilities, acquisitions of software programmed cutting machines, which can be standardized and easily updated with new designs. (Similar to those used in Zara’s facilities). * Increase productivity to meet the demand of the market: production of standardized parts that are adaptable to new trends. Implement a homogeneous set of pieces and play with materials, accessories, mixture of pieces and designs of the fabrics. * Keep the production facilities in only one location –Colombia-, to take advantage of the low cost and also to maintain the high responsiveness required in the fashion industry. * Build local sales office in each region to maintain contact with the Colombian based manufacturing facility. At the same time try to reduce the distributors and increase direct sales, a franchising model could be evaluated. * Review the pricing strategy; the brand is targeting high quality, premium priced products; in all countries the prices should target consumers of luxury products. * Onda de Mar is already selling at a premium in Colombia, an increase in prices will have
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