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1. What are Gino¡¦s competitive advantages and disadvantages in China and how has its channel structure and performance contributed to its competitive position?
Advantage Disadvantage
Product ?Ü Full product range
?Ü Best known for domestic burners
?Ü In-house production capability
?Ü Strong in domestic segment ?Ü Still weak in industrial segment, a star market
Price ?Ü 10-20% price competitiveness ?Ü Price advantage is not so obvious in commercial and industrial segments
?Ü Consumers are not so price sensitive in these segments
Place ?Ü Distributors carry Gino only ?Ü Solely rely on distributors
?Ü Distributors have more power
?Ü Distributors are not so dedicated to Gino¡¦s business
Promotion & service ?Ü Strong technical supporting team ?Ü Mind share in industrial segment is still weak, while it is the market with high growth and margin
?Ü Service and parts heavily rely on distributors
At that time, Gino solely relied on three distributors to sell through its products to OEMs and end-users for the three completely different segments. There are 3-degree separation between Gino and OEMs. The graph above illustrates the current channel structure and the optimal one for Gino. There is a la ...