The Perplexing Case of Puig Doria

Date: Nov 3, 2017
Category: Review Category

Introduction

Puig Doria is a wealthy jewelry firm whose location is traced on Avenids Diagona which is found in Barcelona. The origin of this firm can be traced to Josep Maria Puig Doria who started to design jewelry in the 1950s. The continuous growth in terms of international reputation prompted the proprietor to open an elegant and large showroom which hosted all the administration and other commercial activities in Avenida Diagonal.

  1. What has made Puig Doria successful in Barcelona? What do you see as the firm’s key success factors? Are they exportable?

Success of Puig Doria can be attributed to the commitment of a proprietor towards the firm. A lot of factors, however, contributed to the success. Puig Doria had well vast knowledge about designs of the jewelry but he acknowledged the help of the craftsmen to enable realization of the jewelry. This gave him flexibility in dealing or managing other facilities not focusing on the administrative one that accompanies the production process only (Melissa 79).Delegation of responsibilities reduces the burden and creates flexibility in relation to the capacity of production. Puig Doria was also keen on the changing trends or seasons of demand. This enabled him to take advantage of high demand for the jewelry and make profits. This is evident where he presented the new collection of jewelry designs in a month prior to December which is considered a month where the demand of jewelry is at the peak. Due to high demand, the premiums received were enormous. The designs are exportable. Puig Doria also took into consideration the tastes and preferences of individuals. The design developed reflected a certain customer in mind. Doria also appreciated the fact that creation of high quality jewel was associated with the relationship that existed between design of the jewelry and the environment it was displayed. This includes the color of the store, the walls and the staff outfits (Melissa 90).

  1. Evaluate Puig Doria’s previous attempts at exporting (silver jewelry and the Geneva retail outlet)?

Puig Doria in 1971 developed a high quantity of economical silver jewelry designed to meet the market demand of the United States and the West Germany. This was a successful endeavor as he managed to export a sufficient volume. However, his plans were paralyzed by actions of an employee who started to export his counterfeit designs but still in the company’s name. This led to licensing of the name as the companied brand name to the designs. This prompted the opening of retail outlets in those countries which sold designs exported from Barcelona. It also led to the opening of store in Geneva which was later closed due to lack of a suitable management (Melissa 59).

  1. What has been C. Itoh's contribution in the attempt by Puig Doria to export to Japan? What is the cost of C. Itoh's services?  Should Puig Doria continue using C. Itoh? Why or why not?

C. Itoh was a company in Japan that dealt with trading. In an effort to diversify their margins, a decision was reached to seek a jewelry supplier where Puig Doria was chosen. The metal department director of C. Itoh in Madrid was put in charge of talks which were later broken prior to his leaving until 1983. Puig Doria was allowed to export the jewelry to C. Itoh on the condition that Daimatsu, a manufacturer of silk in Japan, would choose the jewels and sell them to the public. C. Itoh would therefore act as a mediator between Puig Doria and Daimatsu, where they would buy and import the jewelry to Daimatsu and earn commission. My view is that once Puig Doria had established a stable relationship with Daimatsu, he should break the ties with C. Itoh. This is because C. Itoh acted just as a mediator and benefited from that. The major core business lies with Daimatsu which is to help establish a stable market in Japan (Melissa 123).

  1. Who controls the whole export-import process in this relationship? What does control mean in this context? What objectives does each partner or stakeholder have?

The controller of the process in this relationship is Daimatsu. Control implies that the company dictates the rules and procedures if such a relationship. This is because the company determined the criteria which Puig Doria was to use to penetrate the Japanese market. The main objective of Puig Doria was to establish a market for their designs in Japan and Daimatsu was concerned with making a profit from the whole process (Melissa 98).

  1. Examine, from Puig Doria's point of view, what has been done so far with C. Itoh and Daimatsu. Has any real progress been made? How do you evaluate the situation received by Puig Doria and Villar in August 1985?

Having examined the reports done on the Japanese market, my view is that Piug Doria is on the positive end of gaining from the relationship. This is because the designs from Puig Doria would be adapted in Japan in a slow rate but in the long run, the gain would be to Puig Doria. Real progress has been made in that the purchases made by Daimatsu were being tested in the Japan market. In August 1985, the situation presented to Villar and Puig Doria led to the discovery that Puig Dorian designs would be receptive in the Japanese market. This increased the confidence in Villar even as Puig Doria established retail outlet in Nagoya (Melissa 65).

Conclusion and Recommendation

I would recommend that Puig Doria follow the strategy put in place by Daimatsu in line with increasing the receptive rate of Japanese to the Spanish jewelry. Also, the designs should be tailored towards specific needs of the people; for instance, to fit the unmarried young females who make the greatest market.

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