Case ID 14-1058
Published 2014
Industry Code 264
Subject Social enterprise & ethics

Abstract Coinsur & Scada (now called Avanticontrol) is a Southern Spain company which has two linked businesses: the distribution of electronic components and the engineering part in charge of projects of automation and process control. Because of the crisis and due to growing sales in the engineering part of the business, the company decided to stop the distribution business and to specialize only in engineering. The implication of the decision was to expect a much smaller turnover, at least 3 million euros decrease. However, this decision would fit better to the new competitive environment. The market was maturing, only small margins were possible, stronger competitors appeared and even the multinational companies who signed exclusive contracts with Coinsur & Scada breached their duties, selling electronic components without informing its partner. It was time for Coinsur & Scada to react and to adapt its strategy and even its business model.
Pages 21
Teaching Note Yes