Gino SA

Case Analysis
Group 4
Ekta Gulechha
Akriti Rai
Saurabh Malhan
Siddharth Jain
Vishal Balani
Satvinder
Shresth
 Gino’s Competitive Advantages &
Disadvantages in China
Competitive
Advantages
• Global Presence & Good
Brand Image
• In-house production
facility thus lower margins
• Cost advantage in
domestic & commercial
burners
• Industrial burner segment
becoming price conscious
• Strong Channel Network
• Strong employee base
Competitive
Disadvantages
• Excessive reliance on few
distributors & lack of
replacements
• Distributors reluctance to
stock industrial burners
leading to poor market
presence in this segment
 Barriers to Gino’s aggressive penetrating into the
industrial burner market in China

• Loss of opportunity due to distributors’ reluctance to stock

industrial burners

• Weishaupt – market leader in industrial burners

• Lack of a direct/specialized sales force which could provide better

after sales service as distributors focused more on price
differentiation rather than service
Q2 How serious is the control issue that Gino perceives it has with its distributors? Why
does it have this problem? At this stage of its development in China, should Gino be
trying to take more control of its distributors, or should the relationship be a more co-
operative one?

• 95% sales in China through distributors

• Functions of distributor: Excessive dependency
– Credit Function
– Stock Function
– Sales & service function
• High coercive power
– Especially in domestic segments with increasing volume
• Influencing power
– Difficult to build sales force quickly and effectively
They should have a cooperative relationship with them

– One of their significant strategic goals

– Necessary to increase sales across segments
• Domestic(14%),commercial(8%)
– Scarcity of Efficient distributors
– Maintain the Brand value
– Cost management