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External Environment and Internal Strategies of Quimica Del Atlntico - Case Study Example

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The paper "External Environment and Internal Strategies of Quimica Del Atlántico" discusses that the alliance had its own advantages which include allowing the companies to venture easily into foreign grounds with foreign cultures. There were also fears relating to the future of the alliance…
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External Environment and Internal Strategies of Quimica Del Atlntico
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Download file to see previous pages The company opened a plant in Baracaldo in 1955. External environment and internal strategic capabilities The strengths of this company can be analysed through a study of its steady growth. Quimica del Atlantico grew steadily over the years and opened two more factories one which was located at Santurce and the other at Portugalete. The company was over the years consistent in the allocation of significant resources and efforts to research and development and was thus able to produce a number of products and processes. These include- baked enamel used for refrigerators, pollster fishes used for the wood product, use of electrodeposition for paint application systems, water-soluble baths through immersion used especially in automobiles factories, the powdered paint and lastly the Kolormatik system. The company adopted a number of strategies to maintain its position. Its basic tool was technology and the desire to be on the lead in technology caused the company to sign an agreement for the transfer of technology with other companies in various states. With advanced technology, the sales of the company increased immensely. In 1985 the company estimated the products that were sold to approximately 12,000 retail outlets in Spain which were a whopping 75 percent increase. In addition to the huge sales turnover the company had varied and numerous buyers for their products. These included home decorating paints and automobile body repair paints both of which represented 50 percent of the company’s sales. The other 50 percent was accounted for by the sale of paints which were manufactured for industrial customers. The most important industrial customer was automobile OEMs meaning original equipment. These accounted for 30 percent of QA’s total sales. The remaining 20 percent went to another industrial sector which includes automobile components and spare parts, domestic appliance manufacturers, metallographic industry, toys, furniture, railroad stocking etc. The company also grew to be a leading employer in the industry. Its total workforce in the year 1986 amounted to about 575 employees. This huge number of employee’s meant that the company was indeed doing very well. Quimica Del Atlantico was leading in Spain in the refinishing segment since the Spanish civil war ended in three products. These are white paint and two black paints. This means that in addition to making a huge volume of sales the company was also leading in the quality product thus widening its markets even more. Towards the end of 1950s QA was able to position itself well when SEAT at that time started manufacturing cars in Spain. The automobile industry was so far the most important customer of QA. Subsequently, other paint manufacturers and automobile OEMs established industries in Spain. This was the onset of competition but also the onset of a wider market for its product as more automobile industries came to birth as well as competing paint manufacturers. However, until 1985, the customers were limited to within the country. There were no exports until 1986. Spain became a member of European communities on 12th June 1986, a political and economical factor which created a new opportunity for the company. This meant new dawn to the company as Spain had become a part of the regional trade agreement. The company contemplated venturing into the new markets within the European community and also hunting for raw material at a lower cost within the European community. ...Download file to see next pagesRead More
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