Abstract
THEIA provides technical solutions for the construction industry, specializing in materials for thermal insulation. It is positioned in the middle of the distribution channel, between manufacturers and construction companies, and the profound changes that occurred in the sector had repercussions on the company's activity, forcing it to rethink its business strategy. THEIA repositioning was studied according to a specific methodology, combining analysis techniques to assess organizations' internal capacity and the exploration of external conditioning factors. The strategic plan used financial and commercial information from THEIA and from the sector where it operates, according to the following steps: analysis of THEIA's internal situation, external positioning of THEIA in the national market, definition of strategic objectives, elaboration of scenarios and recommendations.
TopCase Description
THEIA’s activity is merely commercial, and operational efficiency is only achieved using the company’s commercial resources, and the contraction in turnover is reflected in the sharp decrease in sales (between 2009 and 2015, it went from 6.2 million euros to 2.5 million euros).
Figure 1.
Turnover between 2009 and 2015 for THEIA
THEIA’s sales have been on a downward trend since 2011, with an average annual drop of 17.2% calculated over the past five years.
Figure 2.
Sales variation between 2010 and 2015 for THEIA
It should be emphasized that in the last two years the sales decrease rate was lower, unlike the years from 2011 to 2013, the variation surpassing -20%, with very punishing consequences for THEIA. 2014 showed a tendency contrary to the previous one, which was not maintained throughout 2015. The decrease in sales was not reversed and it has been maintained since 2011.
Key Terms in this Chapter
Strategy: Strategy is a plan, a direction, or a guide to action for the future, a path to follow from where you are to where you want to go.
Marketing Mix: The marketing mix is a set of controllable variables that determine how consumers respond to the supply and consists of what the company can do to influence the demand for its supply.
Market Positioning: It is the relative position that brands, products, and services occupy in the minds of consumers.
Loyalty: Consumer behavior characterized by buying from the same company, the same brand, or the same product; repeated buying from a firm due to the benefits received from those products.
Market Segmentation: It is the process of splitting a wide consumer or business market, usually encompassing existing and potential customers, into sub-groups of consumers (identified as segments) based on some type of common characteristics.
Satisfaction: Emotional state arising from the purchase or use of a company's product or service; how delighted customers are with a company’s products, services, and capabilities. AU127: Reference appears to be out of alphabetical order. Please check