Onda de Mar

Topics: Marketing, Want, Better Pages: 2 (718 words) Published: August 2, 2012
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 the swimwear market is growing, in North America and Europe.| The capacity of Onda de Mar does not meet the demand.Weak supply chain| The brand targets high quality, premium priced products, produces in a low cost country, which yields higher margins.The company is only serving 30% of its orders. This means high potential for increasing revenues.| Barriers to produce at a large scale, due to the fast changing nature of the industry. Need to restructure the distribution channels; distributors and retailers are getting a significant percentage of the margins.| Potential to give a twist in the positioning and increase revenues in the Colombian Market. | Existing pricing strategy seems to be ambiguous, in different countries.| CONS FOR THE BUYER (Tribeca)|

* One of the funders (Queipo) does not want to sell, however she must be kept for the future business because she is the soul of the brand, but she is difficult to manage and has refused to make her designs more global. She will be a challenge for the buyer. * If both founders want to stay in the business the team will be impossible to handle, given the current relationship between the founders. * Tribeca does not have experience in managing business with a nature...
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