Competing

with Goliath
CASE STUDY SOLVING
GROUP 8
 TELA SAIRA

Similarity: Two businesses are in the same industry, their purpose is to produce fashionable ponchos.
Differences:
- 5 yeas old company - >5 years old company
- Based in Lima, Peru - Based in the US
- Use local workers, sustainable and quality - Labeled its ponchos as "Peruvian design"
materials (although they are made in Bangladesh), use
- Domestic company cheap materials
- Reasonable price ( 40-60$) - A large U.S. firm with a globally recognized
- Haven’t get a ‘real’ message yet ( It’s captured a 60% share of the category
across markets in western Europe and North
and South America)
- Higher price than Tela (70-100$)
- “ BUY ONE GIVE ONE”
 TELA’S SITUATION ANALYSIS
Social Mission
- Supports local entrepreneurs and local workers
- Spreads the message: “Tela isn’t just about
style; it’s about livelihood”
Challenges: Saira have done that positioning
excelent before
Affordability
- “Fashion at the right price”
Challenges: How can Tela provide the same quality
as Saira at a lower price? Are the weavers even
making any money?”
Risks of a fast-follower strategy, it may lead to
misunderstanding of consumers
Authenticity
- Positioning Tela as the maker of “authentic
Peruvian ponchos”
Challenges: Someone may not care about the
product origin as long as its good and reasonable
Combination
- A taglines combine all the information
Challenges: A lot of information conducted into a
tagline, which can make consumer confuse
What
positioning Affordability
should TELA use -
Reasonable price can attract
many customers
- Generate revenue
- Earn and build customer
loyalty with high-quality and
affordable product
- Reduce surplus inventory