Essay About La Casa De Las Botas And Market Demands

La Casa De Las Botas
Q1: Should La Casa de las Botas embrace expansion or should it maintain status quo?In the next 10 yrs. Jorge should embrace expansion and build the value of the company to such a level that when retires he can sell of the company to an able, competent investor committed to carry his legacy and on personal front use the proceeds to lead a fulfilled and financially secured retirement. Maintaining status quo will devalue the company either because of competitive forces or due to change in market demands which will be difficult for Jorge to crank up when the event occurs. If so, which geography and which customer segments?Emerging Market- Russia, India, China, South Africa and Middle East are the fertile geographies for La Casa De Las Botas’ international expansion. New emancipated elite classes with high purchasing power, disposable income looking forward to westernize their life style by tending to consume branded and fashionable and luxury products like equestrian boots. Or should it penetrate existing market or develop new markets? While penetrating existing markets will help sustain the current growth, servicing new markets will put La Casa De La Botas on path of extra ordinary growth destined to build the value of the company in the next decade.  Should company develop its fashion segment or stick to its core business of equestrian boots?Jorge should increase sales in the fashion market. The fashion market makes up 30% of overall sales. While the culturally bound equestrian segment is Jorge’s cash cow, the fashion market is its emerging Star, simply because, the potential buyers of luxury items are many time higher than pre sport lover, more so on such sports/passion like equestrian. Some of the key factors making luxury segment the Star segment are:        • The number of potential buyers is much larger than the Equestrian segment.        • Lack of direct competition may lead to high margins.        • Moves away from La Casas core business.        • Customers demand customization.        • Production was almost at max capacity.        • International orders take about a month to be received.Building upon your recommendations, establish an international marketing plan for the company International marketing consists of finding and satisfying global customer needs better than the competition, both domestic and international and of coordinating marketing activities within the constraints of the global environment.