Case 10-Trimo

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 Case 10-Trimo

1. Describe the nature of the European panel industry in terms of size and characteristics.

The European panel industry is estimated to be about 140 million square meters. It produces

mainly industrial facilities followed by commercial then business facilities. It has panels made of

an insulation sandwich, mineral wood, and extruded polystyrene. Its leading manufacturer of

mineral wool panels is Trimo, while its strongest markets for insulation panels are France, Great

Britain, Germany, and Spain. The top five construction companies in Europe are Vinci, Skanska,

Bouygues, Hochtief, and Ferrovial.

2. Explain the trends in the European construction industry.

For Europe, growth of the construction market is expected to continue at a slow rate. This will

only happen if interest rates go up and affect credit and loan operations negatively. The increase

in interest rates slows consumer spending and leads to fewer investments in the construction

sectors. In Western Europe, growth is expected in the renovation of buildings. In South Eastern

and Central Europe, construction represents a business opportunity, so all developments in the

construction business are expected to produce profits through 2010. This is focused on the

markets of southeastern Europe, the new EU states, Russia, Ukraine, Serbia, and Croatia.

3. What are the critical factors for success in this industry?

Success of any industry depends mainly on the economic situation of the market. The factors to

success may include; a high economic growth rate, availability of development organizations,

insurance of reasonable solutions in the construction sector, strong technical support, initiation of

new products, and substantial foreign direct investment.

 4. Why is a business network so important for the Trimo company?

Business networking for the Trimo company will help it to maintain its international level and

market status abroad. It will also establish a complete relationship with customers and continuing

partnerships. This partnership with investors, suppliers, designers, customers, and many others

will help Trimo have good feedback, hence improving future services, products, and services.

5. How does Trimo develop and maintain its competitive advantage?

Trimo develops and maintains its competitive advantage by having a comprehensible strategy

and vision, employing innovative and ambitious workers, extensive marketing skills and

network, production of quality goods, offering good services, using advanced technologies,

giving solutions to problems encountered by their clients, and encouraging their workers to

develop good communication skills, self-discipline, and team-work.

6. What are the main characteristics of Trimo's marketing strategy in S.E Europe?

Trimo's marketing strategies were characterized into three parts: marketing, expanding their

network, approaching and acquiring new clients, following foreign investors, and increasing

market share. Research and development, where they grew innovation, created joint development

with suppliers and clients, and transferred technological knowledge. Production and purchase,

where they find local manufacturers, set low transportation costs, and bought local raw materials.

7. Describe the Trimo marketing strategy for the Croatian market.

In 2001, Trimo established Trimo Gradenje Limited in Croatia. Its headquarters were in Zagreb

to encourage growth and to acquire qualified personnel. In 2006, it had enough employees, and it

had established its market position. Trimo Gradenje expanded its network by organizing
presentations for investors in larger cities and participating in construction, where it gained new

contacts in Croatia. It also advertised itself in special magazines and joined with local

universities to increase innovation opportunities.

8. Why did Trimo establish Trimo Gradenje in Croatia?

Trimo established its branch in Croatia because Croatia offered an extensive and highly regarded

market in South-Eastern Europe, where they wanted to provide their services. It also had the

additional advantage of providing engineering services.

9. What is the role of Trimo Gradenje in the Trimo Company?

Trimo Gradenje’s main role was to extend Trimo's market services to Croatia and acquire new

clients and potential partners for Trimo in the Croatian market. It was also to create strong

relationships with their clients and satisfying their needs effectively, and this could have become

much better with the establishment of Trimo Gradenje.