Embutidos Salgot S.A.
The case describes the change of strategy carried out by Embutidos Salgot S.A., positioning its products in the premium segment and taking the final step with the launch of Eco Salgot, its range of organic products. This launch reinforced the sales of Reserva Salgot and Salgot, the other two product lines. However, the investment was significant (nearly 2 million euros), the crisis did not favor the consumption of premium products (a price struggle raged between operators), and it was time to get returns. How could the business remain on a sustainable growth path?
Collection: IESE (España)
Ref: M-1263-E
Format: PDF
Number of pages: 27
Publication Date: Oct 5, 2011
Language: English, Spanish
Description
The case describes the change of strategy carried out by Embutidos Salgot S.A., positioning its products in the premium segment and taking the final step with the launch of Eco Salgot, its range of organic products. This launch reinforced the sales of Reserva Salgot and Salgot, the other two product lines. However, the investment was significant (nearly 2 million euros), the crisis did not favor the consumption of premium products (a price struggle raged between operators), and it was time to get returns. How could the business remain on a sustainable growth path?
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Year: 2010
Geographic Setting: España
Learning Objective
To analyze the process involved in changing strategy and its implications for the structure/organization of a family business, and study the new business model created and its future sustainability.
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