PART 2
Working towards Better Vision
1. How was Essilor able to achieve outstanding financial performance? Did it employ strategies
differently from other lens manufacturers?
Essilor’s success rested on its product innovation, efficient distribution network, and
production tooling. To meet the demands of customers (both optical professionals and
2. What were the opportunities and threats in the optical industry? How did these trends
affect industry growth?
The ophthalmic optical market was affected by several trends—demographics, retailing,
geographic locations, substitute products, replacement markets, and insurance programs—
which influenced the growth of this industry.
Geographic Locations:
The number of lenses and selling prices were related closely to GDP per capita. Low-
Substitute Products:
Instead of wearing glasses, contact lenses and Lasik surgery to correct eyesight were
Replacement Markets:
Replacements controlled the majority of the industry sales volume. Eyeglasses needed to
3. In order to sustain strong financial performance, what options did Essilor have? How
should it expand geographically, if at all? Should its marketing strategies differ between
advanced and lesser developed countries?
Essilor was more than three times larger than the second-largest operator, Hoya, one of its
many competitors. Essilor operated only in the corrective lens segment, while most of its
La Casa de las Botas
1. Should La Casa de las Botas embrace expansion or should it maintain the status quo? If
you think Jorge should expand his business (perhaps to better sell the company when he
retires), which geographic markets and which customer segments should he focus on? That
is, should La Casa de las Botas further penetrate existing markets or develop new markets,
and in this case which ones? Should the company further develop the fashion segment or
should it stick to its core business, the equestrian segment? Building upon your
recommendations, establish an international marketing plan for the company.
This question will be good for class discussion, with students having different perspectives
about the issue. Some of them may cite the following material from the case and say that
On the other hand, some of the students may say cite the following material from the case
and say that La Casa de las Botas should maintain the status quo:
• Jorge Da Silva Villagrán is not interested in expanding his business significantly.
Moving production up to larger quantities, risks going against La Casa de Las Botas’
high standards of quality and customer service. The products cannot be standardized
Some of the students may cite the following material from the text and say that the
company should further develop the fashion segment:
On the other hand, some of the students may cite the following material from the text and
say that the company should stick to its core business, the equestrian segment:
• Traditionally, La Casa de Las Botas has targeted the “Equestrian” segment (70
percent of overall sales). This segment is composed of adults, teenagers, and children
A thoughtful strategic marketing plan is needed to maintain the benefits from international
expansion while avoiding its pitfalls. Thus, the marketing plan could contain some of the
following elements:
• In terms of corporate reputation, the quality of products is an obvious primary
success factor. In addition, customer service and personalized attention are critical.
2. How can the demand for custom-made boots be estimated in an underserved foreign
market?
Entering an underserved market is considered to be more lucrative than taking market
share from competitors in a stable market. However, estimating the demand for the
3. How should La Casa de las Botas address online ordering and customer payment methods
for both individual customers and distributors?
At present, La Casa de Las Botas has an online presence which conveys the image of a
traditional and small company dedicated to craftsmanship. In addition, a page on Facebook
4. Do you think Jorge should modify his views about promotion at fairs and exhibition and
establish a direct presence or is he right to give priority to his distributors’ interests? List
the possible advantages and disadvantages of his policy in this regard on the short and the
long term. For instance, how would La Casa de las Botas benefit from further participating
into the Government’s efforts to promote the “Industria Argentina” label abroad?
This question will be good for class discussion. Boots by La Casa de Las Botas are
regularly promoted by local representatives at competitions, fairs and exhibitions held
around the world. Referring to work ethics, Jorge Da Silva Villagrán has been vigilant to
Water from Iceland
1. Is there sufficient information to determine whether importing water from Iceland would
be a profitable business? If not, what additional information is needed to make a
determination?
Research helps prospective companies to obtain detailed information for penetrating a
market, for designing and fine-tuning the marketing mix, or for monitoring the political
2. Is the market climate in the United States conducive to water imports from Iceland?
The bottled water industry in the United States is regulated and controlled at two levels—
by the federal government and by various state governments. Besides, firms in the water
3. What are some possible reasons for the fluctuation in the market share held by imports
over the past ten years?
As a result of the 2008 financial crisis, great strain has been placed on Icelandic trade—
4. Should the U.S. government be involved in regulating bottled water products?
Although government regulations in the U.S. are viewed as a major hindrance to the
Damar International
1. Evaluate alternative expansion strategies for Damar International in the United States.
Two feasible expansion alternatives open to Damar are offering a wider selection of goods
and expanding its labor base. Due to the limitations imposed on Damar by artisans in
Indonesia, not to mention existing competition, it would be very difficult for Damar to
2. Discuss Damar’s expansion alternatives in Indonesia and France and their implications for
the U.S. market.
If Damar wants to expand, it has to either find or borrow the resources necessary to expand
3. How can Damar protect itself against exchange-rate fluctuations?
One way to protect itself against exchange rate fluctuations is to denominate the
4. What are the likely effects of shipment delays on Damar? How can these effects be
overcome?
Since Damar carries no inventory, shipment delays translate into late delivery, customer
dissatisfaction, and lost sales. As Damar’s business is almost entirely based on the
Parker: Big Red Duofold
1. Parker Pen has gone back to its roots of crafting fine writing instruments as luxury
consumer symbols. Are there any new emerging markets that they can focus on that have a
similar culture of writing or gift giving?
With sales lagging or flat in traditional markets, China has become Parker Pen’s top-selling
2. Is there room in Chinese luxury markets for new brands to capture some of this new
market share? Who are China’s luxury consumers and how do we define or redefine them?
There is room in Chinese luxury markets for new brands to capture some of the new
market share and that’s why luxury brands are scrambling to catch the eyes of China’s
There are four categories of Chinese luxury consumers:
• Core luxury buyers—More than half of luxury consumers are core luxury buyers who
traditionally spend between 12 to 20 percent of their income on luxury goods.
• Luxury role models—Luxury role models are young and rich, living a fashionable
lifestyle in Beijing or Shanghai as entrepreneurs or corporate executives. Many have
3. What can Parker Pen do to continue to maintain or grab new market share from big
competitors like Montblanc? What other niches should or could they focus on to grab more
of these emerging luxury buyers?
Parker’s mission is to continue to fuse superior craftsmanship with contemporary style,
offering new products with a high-quality writing nib from the affordable to the luxurious.
This mission will help it maintain or grab some new market share.
