Portico Case Study

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Gordon T


Date added:

May 27, 2014







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6 / 1412


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Furthermore the financial condition of the company was very bad, so they had to make profits in short period of time, which explains the low price strategy and the big chain distribution, that makes it easy to get economies of scale in a short time. Also the company just pays a small price for its raw materials in Costa Rica, which makes it easy to maintain a low price strategy in the US market...
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To utilize the new built plant the company had to produce and sell at a high volume to the US by exporting. By this strategy they try to target the mainstream US market with their product. Results: The company had problems with financing the new plant in the beginning. But with the established building supply retailer contracts in the US and their high volume of exports they got back on track and reached a break even on a cash basis recently...
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