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LONDON SCHOOL OF BUSINESS AND FINANCE Post-Graduate Certificate in Management International Business

Pompe Garbarino International Expansion Strategy Final Assignment Report

Daniel Talasman Diana Jangozina Katarzyna Strzala Leandro Silva

2012

1 -INTRODUCTION

Shipyards, ship owners, navies, engineering companies, chemical and petrochemical plants, desalination plants, powerstations, steelworks, etc., in Italy and all over the world: these are the customers of Pompe Garbarino SpA, worldwide leading company which specializes in the production of centrifugal and positive displacement pumps for marine, naval and industrial fields. Founded in 1932 by Paolo Garbarino, Pompe Garbarino has two factories in Acqui Terme (AL), Piedmont, Italy, and, from 1994 a sales branch in Milan.The company maintains its ““core business”” in the marine and naval fields and has diversified its production facing also the industrial field. Instead of adopting mass production methods, Pompe Garbarino has chosen the technological search in sophisticated and demanding fields. The attention is focused on the constant improvement of the products designed according to the customer’’s requirementsand selecting the most suitable materials for the different applications. Pompe Garbarino always puts the customer’’s needs first thanks to the highly flexible approach and the capability to produce more than 450 different models of pumps. Pompe Garbarino offers an excellent service to customers in terms of technical consultancy and after sales service ensuring the availability of engineers onsite. Spares delivery and product replacement can be guaranteed in very short time thanks to the huge capacity of the warehouse, one of the best strength’’s points of the company.

1.1 - Company History Pompe Garbarino was founded in Acqui Terme in the province of Alessandria, Piedmont in Italy in 1932 to address the growing demands for pumping technology of the local wine industry and aqueducts.After the war Paolo Garbarino, the founder, decided to enter into new markets and, at the beginning of the 1950’’s, forged close ties with the Italian Navy enabling expansion into the field of the marine pumps. Since then Pompe Garbarino has grown to become a supplier to major shipyards in Europe and Asia, ship owners worldwide, the Italian Navy since 1950 (official supplier) as well as severalother foreign navies and to become the world’’s leading company in the supply
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of pumps to the cruise shipbuilding industry (about 90 cruise vessels supplied). The decision to diversify the firm’’s market base by entering the industrial field (including engineering companies, chemical and petrochemical plants, desalination plants, power stations, steel mills, etc.) dates back to the beginningof the 1980’’s and, in 1994, Pompe Garbarino opened a sales branch in Milan in order to increase the market share in the industrial field.

Figure 1 - Examples of portifolio products

2 – SWOT ANALYSIS OF POMPE GARBARINO 2.1 – Strenghts: Pompe Garbarino has been constantly designed and patented a special device which keeping the company out of saturation and decline. Company has been inindustry for many years and knows how to cater to the needs of the consumer. Moreover has been always customer oriented and provides excellent customers service in terms of technical consultancy. After sales service ensuring the availability of engineers on site, as well as spares delivery and product replacement. Spares product replacement can be guaranteed in very short time as well as a selection ofmaterial –– such as cast iron, Nickel-Aluminium Bronze (Ni-Al-Bz), Stainless steel, Duplex, Superduplex, Hastelloy, Monel or any other alloy or super alloy thanks to the huge capacity of the warehouse. Experience with The Italian Nave form 1950’’s helped Pompe Garbarini entered and to grow progressively in the marine field and consequently becoming leading manufacturer that now supplies major...