Jordan A/S Case Study essay

The world is shrinking rapidly in line with the appearance of various highly efficient communications, transportation and financing instruments. A product developed in a country could receive warm welcome in other countries. It is no longer unusual to find a German businessman wearing an Italian suit when meeting his British colleague in a Japanese restaurant. Since 1969, the amount of successful multinationals had increased more than three fold. Some of them have performed their business activities for as long as decades.

Global industry is an industry, where a company’s strategic position is influenced by their global position as a whole (Kotler, 2000). The complexity of the global industry includes various factors that determine the course of the business. Some people try to lessen the effect of global competition by protectionism, and protective laws. However, the better way is for companies to constantly compete and continuously enhance their product in domestic market, and then expand to foreign markets.

Ironically, despite the great benefit of competing in foreign markets, the risk is also high: changing borders, unstable government, currency issues, corruption and technology highjacking. Nevertheless, economists believed that corporations operating in the global industry had no other choice but to internationalize their operations. Within this paper, we will discuss marketing issues related to the case study of Jordan A/S. The company has been considered successful in its domestic market and has gone global for decades. The company encountered various problems in its international practices that need immediate solutions.

In this paper, we will apply the marketing perspective to view the problems at hand. II. Corporate Review In order to assess the issues at the company, we need to first develop an analysis of corporate strengths and weaknesses. We will perform that analysis using a marketing analysis tool called the SWOT analysis II. 1 Case Background The company was founded by Wilhelm Jordan. It designs and produces ‘mechanical oral hygiene products’, mainly non-electrical toothbrushes and also dental floss and dental sticks (toothpicks). Jordan’s products are known as the number 1 toothbrush maker in Europe and number 4 in the world.

Nevertheless, foreign sales of dental products account for 60% of Jordan’s revenue, and the increasing challenges brought by multinationals worries management of the company. The last period was problematic due to reduced earnings. Financial performance is worsen and the marketing department is somewhat accountable for the problem. Employees at all level believe that there is a problem of lack of relationship between production and the marketing department. Management strives for overcoming this problem and discover that a better correlation between the departments resulted tremendous improvements.

However, there are still various marketing issues to be solved. They will be elaborated in the next chapter. II. 2 SWOT Analysis According to marketing teacher (n. d) SWOT analysis is a tool for auditing an organization and its environment. Within this paper, we will use them to critically assess strengths, weaknesses and potentials of the company in their domestic market as well as foreign ones (‘SWOT Analysis’, n. d). II. 2. 1 Strengths Corporate strength lies on its consumer-focus product design and innovative distribution strategy.

The company is adequately strong in its domestic market, and stronger in several of its foreign markets. Despite its past success, both of these strengths would soon be insufficient without the support of a good advertising campaign within its foreign markets. II. 2. 2 Weaknesses Corporate weakness lies on its limited advertising budget, weaker market presence compare to larger brands. The company should strive to increase its advertising campaign and its should not try to enter ‘non-supportive’ markets despite many offers from retailers might existed.

Focusing on core markets and gain larger market share would be the best solution for the decreasing financial performance problem. II. 2. 3 Opportunities Attractive product designs and good reputation is some of its foreign markets indicated that the company still has considerable chance to be successful in its new expansions. Researching into new product lines are also possible ideas for development, because the company has its positive image from some products. Nevertheless, it is important for the company to stick on their strategy of ‘selective market’ in order to maintain its positive development.