Last Delivery

REGIGANTES S.A.




Presented by:

Juan Manuel Isaza




Presented To:

Claudia García





May 5, 2009








Universidad EAFIT
Medellin
2009

REGIGANTES S.A

COMPANY PROFILE


BACKGROUND

Colombian enterprise, REGIGANTES S.A., was established in February 23rd, 1984 with six (6) people; our first line ofproduction was composed of agricultural and industrial tires, as time passed by, we started a new line of production as they are: truck tire retreading (Sale and service), production and export of tire flaps, commercialization of new tires, batteries and import and commercialization of inner tubes.
During this process of evolution we have managed to cover all the national territory, counting forit with the collaboration of all the family REGIGANTES, which nowadays is conformed by 250 employees.

EXPORT BACKGROUND

Regigantes S.A. started exporting since the 90´s. We then took the initiative to start the Colombian Economical Openness for International Markets. That happened when the Colombian Government signed the new Constitution in 1991 with Cesar Gaviria as our President.Regigantes S.A. company has exported before to two countries, which are Ecuador and Venezuela due to our neighboring geographically and that was easy for transportation at the time and freight costs. Although, there are no barriers to language and culture.
First of all, the process of getting the customers abroad was to travel there and get the available information first hand, because at the time therewas limited information to get about any company. There was no Internet as it is right now.
When this company started to get up to speed exporting to Venezuela and Ecuador, Regigantes S.A. had to be registered at the Chamber of commerce and have all the documents required to export by the customs.
All negotiations made with the clients were DAF, an Incoterm meaning the manufacturer´sresponsibility goes up to delivery of goods to the border of the client´s country.
After Venezuela`s political instability arose, the need to search for new markets began and now Central America and further distant countries are taken into account when developing an Export target strategy.

INTERNATIONAL STRATEGY

Regigantes S.A. is nowadays getting to markets abroad by going online to PUBLICAR SA andlook for trustworthy information and also several online export-import directories on the Internet.

After having recollected enough information about a country that also produces the same good, emails are sent. Some of the emails sent are not in the Internet domain, meaning that those emails do not exist. So the database of the possible buyers is being created and debugging one by one.INTERNATIONAL DEPARTMENT STRUCTURE

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SWOT ANALYSIS (Strengths, Weaknesses, Opportunities, Threats)
| |OPPORTUNITIES |THREATS |
| |1. Low exposure to financial leverage.|1. Exchange Currency fluctuation |
| |2. Rapid growth through promotion |2. Volatility in commodity price for main supplier. |
|SWOT MATRIX |3. Strategic alliance with Asia-Pacific rubber industries|3. Arrival of new competitors |
| |4. Purchase of used machinery via Bank’s auctions to expand TIC and |4. Public order |
| |Operational Leasing |5. Recession...