EXECUTIVE SUMARRY

TEXMO is an exclusive submersible pump manufacturing industry, which has been earning solid
returns and profits during the 15 years of its operations. However, in the last couple of decade it is
facing stiff competition in its region of operations, so for the last couple of years it has, decided to
expand the geographical area of operation. But this expansion strategy, backfired and for the first, in
over a decade company has incurred a lost and negative returns

MAIN CONCERNS/REASONS

1 Outdated technology- involved in manufacturing the pumps, i.e. poor capacity to lift huge volume
of water, poor power efficiency, poor heating control mechanism

2 Poor strategy for expansion- one major reason could be that the company has not undertaken
proper research required for marking out the geographical region where there is highest potential
for growth e.g.- Asia pacific region could be best region for expansion due to large scale construction
works, targeting agriculture intensive countries could have fetched more profit as pumps will be
required for irrigation purpose

3 High cost of product – In an order to expand its operation in agriculture intensive country it is
important to reduce cost of product to compete with local producers, so robust new technology
should be employed, robust assembly line to reduce cost of production and more energy efficient

4 Poor advertisement strategy- In an order to increase the sales of product and compete with
established manufacture, in new region it is important to advertise their product effectively
highlighting the benefits there company offers

5 Government regulations- Some countries have come up with strict regulations in drawing
underground water as submersible pumps adversely effects the environment, so it is important for
the company to abide by the regulations and to not invest it resources in expansion in that region

STRATEGY TO FOLLOW

1 Using brand value and good marketing policy- Being a well-established company for few decades
it is evident that, the company can earn good revenue if it, effectively use its brand value to
advertise and sell its product

2 Targeted expansion area- A proper research is required to figure out the targeted geographical
area which can give better returns for e.g.- area with extensive agriculture-based economy will be
interested in purchasing their product, geographical areas with large scale ongoing large-scale
construction will be interested in their products

3 Improving efficiency and technology- In an order to compete with already saturated market it is
important to make the product more robust and efficient using new technology to fix the main
problem faced by product like , carrying large amount of water , heat control mechanism and
increasing fuel efficiency

4 Sustainable products- Several countries have come up with environmental regulations on pumps
which consume too much fuel and adversely effect the environment, so company should try to make
the product more eco friendly

5 Adding value and sustainability to product- when ever the company establishes a new
manufacturing center in other country it should try to employee local people and give them good
wages and benefits, this will help improve companies image in new country
6 Cost effective products- In an order to compete with already existing company it is important to
reduce cost of product and improve the quality of product offered following a lean manufacturing
approach company can achieve it

SWOT ANALYSIS

STRENGTH WEAKNESS OPPRTUNITY THREATS

Brand value Poor research Existing unsaturated Existing competitors
methodology markets
Well-developed Poor technology of Aggressive expansion Govt. regulations
infrastructure product policy
Assets/Large scale Targeting wrong Adopting sustainable Environmental
manufacturing areas for growth product regulations
centers
Lower labor cost in Inefficient use of
developing country brand value and poor
marketing
Opportunity of
collaborating with
local traders