mgmt

Growth Strategy -

1. Motivation: the luxury market in Colombia is the fastest growing market in South America. As the economy is to improve and wages increasing, Colombians are more eager and willing to purchase new products, high-end brands, and unique designs. Waterstone can enter the new target market of Colombia if they can develop a strong partnership with Corona. With Corona’s guidance in the target market, Waterstone is more likely motivated and willing to expand and bring luxury faucets in high-income cities like Bogota and Medellin. These upscale cities are considered the best starting points for the partnership to conduct business. Corona is already a well-established company that produces all forms of faucet equipment and products in the South American market. Waterstone which mainly focuses on luxury faucets with a higher price tag that most Colombians may not be able to afford. With the partnership, Waterstone will be able to expand their target market, with possible setbacks of decreasing costs in materials and mass produced products to limit the costs of shipping overseas.

2. Sustainability: the sustained growth of Colombia has expanded and typically works in favor for the consumers by allowing foreign companies to import goods. This strategy allows the country to have manufacturing opportunities by involving local traders to grasps the attention of potential customers. Waterstones partnership with Corona will bring a significant amount of profits and opportunities that either company individually would not be being able to consider.

3. Alternatives- Colombians have a variety of new products being introduced into their market, making products options more difficult. Depending on the demand for the luxury faucets in particular regions, Waterstone could face a scenario of considering of opening a factory in the South American region, to limit on costs and making it more efficient in producing the products in high demand.