PORCELANOSA
Organizational Plan
In this document we will analyze the strategy of one of the most important
Spanish compani...
!
2!
INDEX
ELEVATOR PITCH!
4!
BUSINESS CANVAS MODEL!
5!
ENVIROMENT ANALISYS!
11!
MCKINSEY 7S!
PESTEL ANALYSIS!
PORTER’S 5...
ELEVATOR PITCH
Porcelanosa Group is a family company that has expanded its business
worldwide in recent years. It has 8 di...
BUSINESS CANVAS MODEL
The Business Canvas Model is a strategic management template, which
will allow us to develop the Por...
2.
Value proposition. As the company distinguishes two types of customers,
we also have to distinguish the value
proposit...
companies of Porcelanosa Group. This kind of event maintain, even
strengthen, the relationship between both prospect and f...
5.
Key activities. According to the value proposition offered by Porcelanosa,
the company has to have a basic pillar on m...
7.
Key partners. Porcelanosa works with many different types of suppliers and
partners. First of all raw material supplie...
Cost Structure
Research and Development (R&D)
Factories
Procurement
Advertising and publicity
Logistic
9.
Revenue st...
Key Partners
Designed for:
Benedetti, Francesca
Cano, Jorge
Catalá, Erica
Designed by:
Porcelanosa
Key Activities
Val...
ENVIROMENT ANALISYS
McKinsey 7S
This analysis develops both hard (strategy, structure and system) and soft
elements (skill...
Pestel analysis
In this section you will find a list of factors related to the environment that
surrounds Porcelanosa in a...
Porter’s 5 Forces
With the Porter’s five forces we will identify and analyze the five
competitive forces that shape every ...
ANSOFF MATRIX
PRODUCTS
Current
New
Krion
Current
Ceramic
and tile
industry
Ecologic
product
Natural
product
MARKET
...
Since Porcelanosa was founded in 1973, the company has been featured
by its large diversification within the ceramic and t...
walls and even furniture, in order to have One source for all your needs, knowing
to create a innovative, international an...
SWOT MATRIX
The term SWOT is an acronym that indicates the first letters of the words
strength, weaknesses, opportunities ...
BIBLIOGRAPHY
Documents:
•
Audit of Porcelanosa’s financial statements. [Castellón]: Colegio de
Registradores de Castelló/...
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Porcelanosa - Organizational plan

In this project we analyzed the strategy of one of the most important Spanish companies with a presence throughout the world, dedicated to designing, manufacturing and selling a wide range of household products, Porcelanosa. Our team analyzed its business model canvas based on several methods and tools, from classic strategic methods to modern ones such as ANSOFF matrix, five porter's forces, Mc Kinsey 7S, SWOT and PESTEL.
Published on: Mar 4, 2016
Published in: Business      Technology      
Source: www.slideshare.net


Transcripts - Porcelanosa - Organizational plan

  • 1. PORCELANOSA Organizational Plan In this document we will analyze the strategy of one of the most important Spanish companies with a presence throughout the world, dedicated to designing, manufacturing and selling a wide range of household products, Porcelanosa. For the analysis of the strategy our team will use several methods and tools, from classic strategic methods to modern. “One source for all your needs” iMBA 2013-14 Benedetti, Francesca Cano, Jorge Catalá, Erica
  • 2. ! 2!
  • 3. INDEX ELEVATOR PITCH! 4! BUSINESS CANVAS MODEL! 5! ENVIROMENT ANALISYS! 11! MCKINSEY 7S! PESTEL ANALYSIS! PORTER’S 5 FORCES! 12! 13! 14! ANSOFF MATRIX! 15! SWOT MATRIX! 18! BIBLIOGRAPHY! 19! ! 3!
  • 4. ELEVATOR PITCH Porcelanosa Group is a family company that has expanded its business worldwide in recent years. It has 8 different companies and each one is specialized in a concrete area; floor and wall tiles, kitchens, dressing rooms, bathrooms and building systems. For this purpose, the group relies on its key partners, suppliers and prescribers, who collaborate in its key areas, R&D activity, procurement and marketing. The company is targeting both profitable businesses and affluent final customers, both looking for quality and design products, which want to differentiate themselves acquiring exclusive goods that are not consumed by the mass market. These consumers meet the company from the most traditional way, through their stores, magazines or publicity, but also from showrooms and social events, where the company makes a great effort to surround itself with media and public personalities such as Isabel Presley or George Clooney among others. Finally, Porcelanosa differs from its direct competitors by the quality of its products, its diversification, its global presence and its strong commitment to innovation and technology, like Noken with Krion. This has allowed the company to be a world famous company, leader in the areas where operates and sustainable over the time. ! 4!
  • 5. BUSINESS CANVAS MODEL The Business Canvas Model is a strategic management template, which will allow us to develop the Porcelanosa’s business model through nine elements, which our team will study in depth below. 1. Customer segments. Customers can be divided into two very distinct segments, final customers (B2C), and business customers (B2B). Within the first classification customers are looking for products both traditional and avant-garde design, but always looking for quality, high technology, careful design and exclusivity for the first or second home. Is also Customer Segments B2C: important to mention the segment of the population with purchasing power that the Middle-upper and upper class company focuses, we could classify this Quality and design oriented customer segment as upper-middle class and upper class. Within the second classification B2B: Final customer-oriented business Hotels Restaurants Car industry Real State Airports Fashion retailers and many others Prescribers Architects Designers Decorators Porcelanosa aims to reach businesses where the company can provide its quality products and exclusiveness brand. In general these businesses are also identified with the quality and exclusiveness such as Bentley, BMW or MGM Mirage among others. Sometimes there are global and profitable companies who can afford the cost of Porcelanosa’s exclusiveness, such as McDonald’s, Subway or Holiday Inn among others. Other businesses that are clients of Porcelanosa are those who belong to the building industry, such as decorators, architects or designers. This prescribers link Porcelanosa’s product to other customers. We can see this issue as an opportunity in the SWOT matrix, which is explained later on.!! ! 5!
  • 6. 2. Value proposition. As the company distinguishes two types of customers, we also have to distinguish the value proposition to each customer. On one side Value Proposition B2C: are the B2C customers, to whom the High quality product company offers high quality products, Traditional and avant-garde design manufactured with the latest technology in High technology design the market and both traditional and avant- Efficient distribution system High social status garde design. But the perception of value is not limited to this; when the customer purchases a product socially acquire a higher-level status, further than this, exclusivity. There are much evidence you can see in customer relationship and key activities. On the other side are the B2B customers, who also receive added value in Exclusive customer relation B2B: High quality product Design High technology design Added value to the business's product or service Efficient distribution system Quick respons to a mass demand their businesses and a quick response to a mass demand from de market.! 3. Customer relationship. Porcelanosa creates five types of relationships with its customers. The first would be a relationship of personal assistance, where the customer is informed about the world of possibilities offered by the company. It is personal and advised according to the prospect customer’s needs. The second type of relationship would be once the prospect customer becomes a final customer, the relationship is stronger, would be a dedicated relationship. At this point a Porcelanosa’s specialist personally ensures that the customers receives the full experience of Customer Relationship Personal assistance Dedicated personal assistance Trade fairs quality, professionalism, detail-oriented and luxury. This dedicated personal assistance supports the customer through the entire process until the final product is installed at After-sales service home. The third type of relationship is Customization through trade fairs held annually each February in Villa-Real. In this event, customers around the world are focused for four days to discover the latest developments made by the eight ! 6!
  • 7. companies of Porcelanosa Group. This kind of event maintain, even strengthen, the relationship between both prospect and final customers with the brand. The fourth type of relationship is within the after-sales service, and finally, the fifth type is customization. The company offers to its clients, through its manufacturing processes, the ability to adapt the product to a wide range of individual customer needs, which lead us to the first type of customer relationship, personal assistance.! 4. Channels. Channels must divided into two blocks, direct and indirect channel, in order to reach the customer segments. Talking about the direct channel, which is directly related with the company, Porcelanosa tries to obtain new clients and build loyalty through its stores, department stores and showrooms where are displayed many examples or interior design. The company has its own magazine Lifestyle & Porcelanosa, a free magazine addressed to the customers whom are interested on design, interior design, Channels DIRECT cutting-edge architecture and new trends. Stores Department stores Porcelanosa, through the public relation group, plans and holds events in order to get the word out about the company in the Showrooms Events by public relations Catalogue and magazine Media advertising country area they are establishing, using recognized people as brand image. Also, Porcelanosa is promoted by the media publicity on TV and press with the aim to Social network INDIRECT Prescribers Architects Designers Decorators show its events and new openings. Aware of the role of social media and its current relevance in communication of any organization, Porcelanosa has launched its own blog and its corporate profile on major social platforms that are currently in the network such as Facebook or Twitter, and website partners whit whom has an alliance or partnership.! On the other hand, through indirect channels, Porcelanosa approaches its target market through prescribers, such as architects, designers or decorators whom have home’s projects for its customers.! ! 7!
  • 8. 5. Key activities. According to the value proposition offered by Porcelanosa, the company has to have a basic pillar on many departments. The company’s strategy is focused on the internationalization, looking for a sales and growth increasing as the Key Activities Research and Development and Innovation (R&D) Procurement Logistic Marketing Spanish industrial sector is stagnated, then this strategy is based in a huge investment on marketing and researchdevelopment-innovation (R&D&I) in order to pay attention to the new technologies. Thus, the quick adaptation to any innovation is the Porcelanosa’s concept and rules. As a considerable part of the budget has been allocated to investment on R&D&I, the procurement and logistics department has became a relevant feature of Porcelanosa, purchasing quality raw materials, being efficient on its lead times -using high technology-, on its warehouses and giving a quick response to mass demands.! 6. Key resources. Many of the key resources of Porcelanosa are directly related with the key activities of the company. On the first hand, we can find some aspects of logistics attending to the high quality raw material that Porcelanosa procurement and purchasing acquire for the wide range of factories has in each part of the world, and the warehouses distribution system. In this case Porcelanosa has many partnerships, which will be explain later Key Resources on, with information technologies (IT) High quality raw material companies in order to continuously adapt Factories the machines to the latest technologies Warehouses distribution system and ease the information among the IT employees related with the production Brand process. Taking into account all the key resources and activities, Porcelanosa has created a well known brand image of high quality giving a high value proposition to the target market, being at the same time a key resource for the company.! ! 8!
  • 9. 7. Key partners. Porcelanosa works with many different types of suppliers and partners. First of all raw material suppliers located all over the world. The main products delivered to Porcelanosa are marble, ceramic, clay and other stone material. Other products of the wide range of raw material are wood, chemical stuffs, and stainless steel Key Partners Raw material suppliers Suppliers spread around the world Marketing companies Mapfre Global Risk Service & equipments: Italy, Germany, Japan Prescribers Architects Designers Decorators IT companies for taps and other accessories. Other suppliers of the company are marketing companies, in order to carry out the promotion of portfolio, Porcelanosa product insurance international companies such as Mapfre Global Risk and IT companies who provide tools that allow accurate, on time and multiplatform information. In the last decades Porcelanosa developed an intense collaboration with countries like Italy, German and Japan in service and equipment issues, in order to cover the lack of possibilities in the national area. It should be named prescribe companies, architects, designers and decorators whereby Porcelanosa closely works to realize furniture installation.! 8. Cost structure. Porcelanosa is a company with a value-driven philosophy. Less concerned with cost, Porcelanosa business model focuses on creating value for their product. “Even if we wanted, Porcelanosa doesn’t know how to manufacture cheap” Silvestre Segarra, Vice-president. In fact the main areas where the company invests a big part of cost structure are the logistic one, in order to realize an excellent distribution system. The procurement department, looking for the best-quality materials and services from suppliers and partners. High investments also in R&D&I to improve technologically products quality and the production process in general. And finally advertising and publicity with the latest modern marketing techniques to promote Porcelanosa products.! ! 9!
  • 10. Cost Structure Research and Development (R&D) Factories Procurement Advertising and publicity Logistic 9. Revenue streams. Talking about Porcelanosa, the main cash flow revolves around four different items. Innovation and Quality, which are key factors in Porcelanosa values system; exclusivity, another value created by the company thanks to the uniqueness involved buying Porcelanosa products. Other groups, fundamental in Porcelanosa revenue streams, are the Prescribers whereby the company cooperates in order to offer an excellent service of planning and installation to its customers. Lastly the Stores themselves, whence Porcelanosa get out the majority of its income.! Revenues Streams Innovation and quality Exclusivity ! Prescribers Stores 10!
  • 11. Key Partners Designed for: Benedetti, Francesca Cano, Jorge Catalá, Erica Designed by: Porcelanosa Key Activities Value Proposition Customer Relationship B2C: Raw material suppliers Suppliers spread around the world Marketing companies Mapfre Global Risk Service & equipments: Italy, Germany, Japan Prescribers Architects Designers Decorators IT companies On: 27/01/14 11! The Business Canvas Model Customer Segments B2C: High quality product Personal assistance Procurement Traditional and avant-garde design Dedicated personal assistance Logistic High technology design After-sales service Marketing Efficient distribution system Customization Research and Development and Innovation (R&D) Middle-upper and upper class Quality and design oriented Trade fairs High social status Key Resources Exclusive customer relation High quality raw material B2B: Channels B2B: DIRECT High quality product Design Warehouses distribution system IT Department stores High technology design Factories Stores Showrooms Events by public relations Added value to the business's product or service Brand Catalogue and magazine Efficient distribution system Media advertising Quick respons to a mass demand Social network INDIRECT Final customer-oriented business Hotels Restaurants Car industry Real State Airports Fashion retailers and many others Prescribers Architects Designers Decorators Prescribers Architects Designers Decorators Revenues Streams Research and Development (R&D) Factories Procurement Advertising and publicity Logistic Innovation and quality Prescribers Exclusivity Stores ! Cost Structure
  • 12. ENVIROMENT ANALISYS McKinsey 7S This analysis develops both hard (strategy, structure and system) and soft elements (skills, staff, style and shared values), of Porcelanosa’s business model. Strategy Style As a family business, all decision are taken centralized. It is a global company, so the information channels need to be really effective and efficient Staff Oriented to achieve quality and designed products focusing the corporate image in excellence, luxury and exclusiveness “Porcelanosa has its strategy both quality and design of its products, focusing the corporate image in excellence, luxury and exclusiveness” Jose Pascual Pesudo, Marketing Manager Structure Shared Values It is a global company, market structured, but familiar. Its expansion is formulated by its own stores and alliances The whole Porcelanosa, from bottom to top, is commited to learning, harmony, collaboration, communication, cooperation, creativity, growth, development, flexibility, passion and precision values. But quality, innovation and efficiency are pilars. Skills Customer oriended, retailer and exquisite, communicative, creative, effectiveness and efficiency, analytics, motivated or analytics among others ! System “Porcelanosa bet heavily on IT to automate the most production processes, distribution and aperture of new stores” D. Manuel Gil Cantavella IT Manager 12!
  • 13. Pestel analysis In this section you will find a list of factors related to the environment that surrounds Porcelanosa in aspects such as politics, economic, social situation, technological, environmental development and legal system. They can affect positively or negatively to the general activity of the company. Political Government policy Political instability in overseas markets Foreign trade policy Tax policy Labour law Legal Taxation International legislation Trade restrictionTrade restriction Economic Labour economic situation Interests and inflation Market cycles Credit funding/facilities Commercial policy Regulative entities Country development level Exchange rates inflation Norms Commercial policy GPD per capita Porcelanosa Social Environmental Demography Consumer attitude Limited natural resources Waste disposal and recycling procedures Consumer profile Ethnic and religious factors Technological Competitors technological development Technological maturity Financing research Innovation potentiality ! 13!
  • 14. Porter’s 5 Forces With the Porter’s five forces we will identify and analyze the five competitive forces that shape every industry, in Porcelanosa’s case the tile and ceramic sector, in order to determine the weaknesses and strengths of it. 2. Potential of new entrants In order to approach Porcelanosa, companies can find barriers to entry in the industry. First, the company has a depth knowledge about all its products, then the companies who would reach its position would need so many time on learning and carrying high costs of entry. And secondly, they also may need to adapt the machinery to the latest techonology systems as Porcelanosa has a high level on innovation technology. 5. Threat of substitute products Porcelanosa has clearly distanced itself from the first competitors when the company began its diversification transforming them into substitutes. Those ones can be substitutes of the Porcelanosa’s ones, but not replacing them at all. Companies like Leroy Merlin, the german The Singular Kitchen, Roca, the wide range of tile companies from Castellón or even IKEA. 1. Competition within Porcelanosa industry Porcelanosa Group being leader in each sector in which has presence has been approached by many companies giving similar value proposition at similar price as Fiandre Architectural Surfaces, Grupo Concorde, New Pearl Ceramics Groupp, Alfagres and Daltile. 3. Bargaining power of suppliers The company has a wide range of suppliers all of them spread worldwide focused on reducing lead times to accomplish with the quick response feature of the company and its effectively distribution system. Then, looking backward on the supply chain we can consider that there is a neutral supplier power on its environment. 4. Bargaining power of customers Paying attention to the other side we find the target market segmented into B2C and B2B. On the first hand, the final customers (B2C) are who are looking for something exclusive. This exclusity brings a top quality and edge fashion and innovative products or services, which satisfy their need for their home. On the other hand, Porcelanosa has a wide range of business customers (B2B) as hotels, car industry, real state and many others, or prescribers like architects or designers focused on professional drafts or customers’ homes. Both segments have no bargaining power obtaining in this way a neutral buyer power. ! 14!
  • 15. ANSOFF MATRIX PRODUCTS Current New Krion Current Ceramic and tile industry Ecologic product Natural product MARKET MARKET PENETRATION Kitchen and bathrooms Health & wellness New Europe PRODUCT DEVELOPMENT USA Spa home MARKET DEVELOPMENT ! Building systems DIVERSIFICATION 15!
  • 16. Since Porcelanosa was founded in 1973, the company has been featured by its large diversification within the ceramic and tile world, establishing this factor as its growth strategy as you can see in this chronology. 1973 1986 1987 1993 1999 2001 2001 2004 •  Porcelanosa: passion for detail and quality •  Venis: exclusive and surprising design •  Gamadecor: state-of-the-art kitchen and bathrooms •  Systempool: the benefits of water •  L'antic Colonial: the very essence of nature's own materials •  Butech: high-tech building solutions •  Noken: efficiency and sophistication in bathroom equipment •  Urbatek: products for large-scale projects Taking the entire chronology and ANSOFF matrix into account, we can see that in the Porcelanosa’s business model predominates the diversification as growth strategy focused always on the customer. Although despite this strategy, the group has also commercialized new products within the market where it is present laying on its own supply chain, carrying out a product development strategy. At the same time, since its beginning Porcelanosa the company has gradually build a market development strategy going overseas based on a sales analysis following the best sales rate in order to know how worthy is doing business in the country selected. With the last enterprise, Urbatek, the group has wanted to consolidate its position in the main market from where it was born commercializing more in depth the porcelanato among the traditional products. All of this represents a market penetration in the ceramic and tile industry sector, which plus its internationalization the group has been establishing in different parts of its supply chain but not depending on them, in other words, if one company of the group falls, it doesn’t drag the entire group. Following all those strategies, especially the diversification, Porcelanosa has positioned itself as leader in many services about bathroom, kitchen, floor, ! 16!
  • 17. walls and even furniture, in order to have One source for all your needs, knowing to create a innovative, international and branched group and converting an industrial product into a consumer product. ! 17!
  • 18. SWOT MATRIX The term SWOT is an acronym that indicates the first letters of the words strength, weaknesses, opportunities and threats. Two of them, strengths and weaknesses are related to internal and controllable variables of the company, object of this study. On the other side, opportunities and threats are external and non-controllable factors connected to the general environment of the market to which belongs Porcelanosa.! STRENGHTS! WEAKNESSES! ! Limited scale of operations portfolio Internal and controllable ! Diversified product ! Difference in pricing ! Strong brand portfolio according to the companies (quality and design) (of the same sector) ! Efficient distribution service ! Deeply dependent on Italian (logistic) and German technology (lack ! Productivity independence of in the national area) OPPORTUNITIES External and non-controllable ! Growth in demand for global wood products ! Positive outlook for global construction industry ! Strategic growth initiatives ! ! THREATS ! Stringent legislative and social regulations ! Decreasing of the national products demand ! Increasing of substitutes products. 18!
  • 19. BIBLIOGRAPHY Documents: • Audit of Porcelanosa’s financial statements. [Castellón]: Colegio de Registradores de Castelló/Castellón, 2012. 83p. • AZNAR, Álvaro. Advanced strategic management systems. [Valencia]: Estema Business School, 2013. 37p. • AZNAR, Álvaro. Strategic planning applied to international companies. [Valencia]: Estema Business School, 2014. 71p. • CARRILERO CASTILLO, Agustín. Strategic decisions on Operation Management. [Valencia]: Estema Business School, 2014. 31p. • PERALT RILLO, Agustín. H3S. [Valencia]: Estema Business School, 2013. 29p. Tools: • SABI [Consultation: Sunday, 26 January 2014] Web pages: • http://www.businessmodelgeneration.com [Consultation: Tuesday, 14 January 2014] • • http://www.expansion.com [Consultation: Thursday, 23 January 2014] • http://www.iti.es [Consultation: Monday, 27 January 2014] • http://www.porcelanosa.com [Consultation: Monday, 13 January 2014] • http://www.prezi.com [Consultation: Monday, 20 January 2014] • ! http://www.cincodias.com [Consultation: Thursday, 23 January 2014] http://www.registradores.org [Consultation: Monday, 27 January 2014] 19!

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