In this project we analyzed the strategy of one of the most important Spanish companies with a presence throughout the world, dedicated to designing, manufacturing and selling a wide range of household products, Porcelanosa. Our team analyzed its business model canvas based on several methods and tools, from classic strategic methods to modern ones such as ANSOFF matrix, five porter's forces, Mc Kinsey 7S, SWOT and PESTEL.

1. PORCELANOSA
Organizational Plan
In this document we will analyze the strategy of one of the most important
Spanish companies with a presence throughout the world, dedicated to designing,
manufacturing and selling a wide range of household products, Porcelanosa.
For the analysis of the strategy our team will use several methods and tools, from
classic strategic methods to modern.
“One source for all your needs”
iMBA 2013-14
Benedetti, Francesca
Cano, Jorge
Catalá, Erica

2. !
2!

3. INDEX
ELEVATOR PITCH!
4!
BUSINESS CANVAS MODEL!
5!
ENVIROMENT ANALISYS!
11!
MCKINSEY 7S!
PESTEL ANALYSIS!
PORTER’S 5 FORCES!
12!
13!
14!
ANSOFF MATRIX!
15!
SWOT MATRIX!
18!
BIBLIOGRAPHY!
19!
!
3!

4. ELEVATOR PITCH
Porcelanosa Group is a family company that has expanded its business
worldwide in recent years. It has 8 different companies and each one is
specialized in a concrete area; floor and wall tiles, kitchens, dressing rooms,
bathrooms and building systems. For this purpose, the group relies on its key
partners, suppliers and prescribers, who collaborate in its key areas, R&D
activity, procurement and marketing.
The company is targeting both profitable businesses and affluent final
customers, both looking for quality and design products, which want to
differentiate themselves acquiring exclusive goods that are not consumed by the
mass market. These consumers meet the company from the most traditional way,
through their stores, magazines or publicity, but also from showrooms and social
events, where the company makes a great effort to surround itself with media and
public personalities such as Isabel Presley or George Clooney among others.
Finally, Porcelanosa differs from its direct competitors by the quality of its
products, its diversification, its global presence and its strong commitment to
innovation and technology, like Noken with Krion. This has allowed the
company to be a world famous company, leader in the areas where operates and
sustainable over the time.
!
4!

5. BUSINESS CANVAS MODEL
The Business Canvas Model is a strategic management template, which
will allow us to develop the Porcelanosa’s business model through nine elements,
which our team will study in depth below.
1.
Customer segments. Customers can be divided into two very distinct
segments, final customers (B2C), and business customers (B2B). Within the
first classification customers are looking for products both traditional and
avant-garde design, but always looking for quality, high technology,
careful design and exclusivity for the first or second home. Is also
Customer Segments
B2C:
important to mention the segment of the
population with purchasing power that the
Middle-upper and upper class
company focuses, we could classify this
Quality and design oriented
customer segment as upper-middle class and
upper class. Within the second classification
B2B:
Final customer-oriented business
Hotels
Restaurants
Car industry
Real State
Airports
Fashion retailers and many others
Prescribers
Architects
Designers
Decorators
Porcelanosa aims to reach businesses where
the company can provide its quality products
and exclusiveness brand. In general these
businesses are also identified with the quality
and exclusiveness such as Bentley, BMW or
MGM Mirage among others. Sometimes there
are global and profitable companies who can afford the cost of
Porcelanosa’s exclusiveness, such as McDonald’s, Subway or Holiday Inn
among others. Other businesses that are clients of Porcelanosa are those
who belong to the building industry, such as decorators, architects or
designers. This prescribers link Porcelanosa’s product to other customers.
We can see this issue as an opportunity in the SWOT matrix, which is
explained later on.!!
!
5!

6. 2.
Value proposition. As the company distinguishes two types of customers,
we also have to distinguish the value
proposition to each customer. On one side
Value Proposition
B2C:
are the B2C customers, to whom the
High quality product
company offers high quality products,
Traditional and avant-garde
design
manufactured with the latest technology in
High technology design
the market and both traditional and avant-
Efficient distribution system
High social status
garde design. But the perception of value is
not limited to this; when the customer
purchases a product socially acquire a
higher-level
status,
further
than
this,
exclusivity. There are much evidence you
can see in customer relationship and key
activities. On the other side are the B2B
customers, who also receive added value in
Exclusive customer relation
B2B:
High quality product
Design
High technology design
Added value to the business's
product or service
Efficient distribution system
Quick respons to a mass demand
their businesses and a quick response to a mass demand from de market.!
3.
Customer relationship. Porcelanosa creates five types of relationships with
its customers. The first would be a relationship of personal assistance,
where the customer is informed about the world of possibilities offered by
the company. It is personal and advised according to the prospect
customer’s needs. The second type of relationship would be once the
prospect customer becomes a final customer, the relationship is stronger,
would be a dedicated relationship. At this point a Porcelanosa’s specialist
personally ensures that the customers receives the full experience of
Customer Relationship
Personal assistance
Dedicated personal assistance
Trade fairs
quality, professionalism, detail-oriented and
luxury. This dedicated personal assistance
supports the customer through the entire
process until the final product is installed at
After-sales service
home. The third type of relationship is
Customization
through trade fairs held annually each
February in Villa-Real. In this event, customers around the world are
focused for four days to discover the latest developments made by the eight
!
6!

7. companies of Porcelanosa Group. This kind of event maintain, even
strengthen, the relationship between both prospect and final customers
with the brand. The fourth type of relationship is within the after-sales
service, and finally, the fifth type is customization. The company offers to
its clients, through its manufacturing processes, the ability to adapt the
product to a wide range of individual customer needs, which lead us to
the first type of customer relationship, personal assistance.!
4.
Channels. Channels must divided into two blocks, direct and indirect
channel, in order to reach the customer segments. Talking about the direct
channel, which is directly related with the company, Porcelanosa tries to
obtain new clients and build loyalty through its stores, department stores
and showrooms where are displayed many examples or interior design.
The company has its own magazine Lifestyle & Porcelanosa, a free
magazine addressed to the customers whom
are interested on design, interior design,
Channels
DIRECT
cutting-edge architecture and new trends.
Stores
Department stores
Porcelanosa, through the public relation
group, plans and holds events in order to get
the word out about the company in the
Showrooms
Events by public relations
Catalogue and magazine
Media advertising
country area they are establishing, using
recognized people as brand image. Also,
Porcelanosa
is
promoted
by
the
media
publicity on TV and press with the aim to
Social network
INDIRECT
Prescribers
Architects
Designers
Decorators
show its events and new openings. Aware of the role of social media and
its current relevance in communication of any organization, Porcelanosa
has launched its own blog and its corporate profile on major social
platforms that are currently in the network such as Facebook or Twitter,
and website partners whit whom has an alliance or partnership.! On the
other hand, through indirect channels, Porcelanosa approaches its target
market through prescribers, such as architects, designers or decorators
whom have home’s projects for its customers.!
!
7!

8. 5.
Key activities. According to the value proposition offered by Porcelanosa,
the company has to have a basic pillar on many departments. The
company’s strategy is focused on the internationalization, looking for a
sales and growth increasing as the
Key Activities
Research and Development and
Innovation (R&D)
Procurement
Logistic
Marketing
Spanish industrial sector is stagnated,
then this strategy is based in a huge
investment on marketing and researchdevelopment-innovation
(R&D&I)
in
order to pay attention to the new
technologies. Thus, the quick adaptation
to any innovation is the Porcelanosa’s concept and rules. As a
considerable part of the budget has been allocated to investment on
R&D&I, the procurement and logistics department has became a relevant
feature of Porcelanosa, purchasing quality raw materials, being efficient on
its lead times -using high technology-, on its warehouses and giving a
quick response to mass demands.!
6.
Key resources. Many of the key resources of Porcelanosa are directly
related with the key activities of the company. On the first hand, we can
find some aspects of logistics attending to the high quality raw material
that Porcelanosa procurement and purchasing acquire for the wide range
of factories has in each part of the world, and the warehouses distribution
system. In this case Porcelanosa has many
partnerships, which will be explain later
Key Resources
on, with information technologies (IT)
High quality raw material
companies in order to continuously adapt
Factories
the machines to the latest technologies
Warehouses distribution system
and ease the information among the
IT
employees related with the production
Brand
process. Taking into account all the key resources and activities,
Porcelanosa has created a well known brand image of high quality giving
a high value proposition to the target market, being at the same time a key
resource for the company.!
!
8!

9. 7.
Key partners. Porcelanosa works with many different types of suppliers and
partners. First of all raw material suppliers located all over the world. The
main products delivered to Porcelanosa are marble, ceramic, clay and
other stone material. Other products of the wide range of raw material are
wood, chemical stuffs, and stainless steel
Key Partners
Raw material suppliers
Suppliers spread around the world
Marketing companies
Mapfre Global Risk
Service & equipments: Italy,
Germany, Japan
Prescribers
Architects
Designers
Decorators
IT companies
for taps and other accessories. Other
suppliers of the company are marketing
companies, in order to carry out the
promotion
of
portfolio,
Porcelanosa
product
insurance
international
companies such as Mapfre Global Risk
and IT companies who provide tools that
allow accurate, on time and multiplatform information. In the last decades
Porcelanosa
developed
an
intense
collaboration with countries like Italy,
German
and
Japan
in
service
and
equipment issues, in order to cover the lack of possibilities in the national
area. It should be named prescribe companies, architects, designers and
decorators whereby Porcelanosa closely works to realize furniture
installation.!
8.
Cost structure. Porcelanosa is a company with a value-driven philosophy.
Less concerned with cost, Porcelanosa business model focuses on creating
value for their product. “Even if we wanted, Porcelanosa doesn’t know
how to manufacture cheap” Silvestre Segarra, Vice-president. In fact the
main areas where the company invests a big part of cost structure are the
logistic one, in order to realize an excellent distribution system. The
procurement department, looking for the best-quality materials and
services from suppliers and partners. High investments also in R&D&I to
improve technologically products quality and the production process in
general. And finally advertising and publicity with the latest modern
marketing techniques to promote Porcelanosa products.!
!
9!

10. Cost Structure
Research and Development (R&D)
Factories
Procurement
Advertising and publicity
Logistic
9.
Revenue streams. Talking about Porcelanosa, the main cash flow revolves
around four different items. Innovation and Quality, which are key factors
in Porcelanosa values system; exclusivity, another value created by the
company thanks to the uniqueness involved buying Porcelanosa products.
Other groups, fundamental in Porcelanosa revenue streams, are the
Prescribers whereby the company cooperates in order to offer an excellent
service of planning and installation to its customers. Lastly the Stores
themselves, whence Porcelanosa get out the majority of its income.!
Revenues Streams
Innovation and quality
Exclusivity
!
Prescribers
Stores
10!

11. Key Partners
Designed for:
Benedetti, Francesca
Cano, Jorge
Catalá, Erica
Designed by:
Porcelanosa
Key Activities
Value Proposition
Customer Relationship
B2C:
Raw material suppliers
Suppliers spread around the world
Marketing companies
Mapfre Global Risk
Service & equipments: Italy,
Germany, Japan
Prescribers
Architects
Designers
Decorators
IT companies
On:
27/01/14
11!
The Business Canvas Model
Customer Segments
B2C:
High quality product
Personal assistance
Procurement
Traditional and avant-garde
design
Dedicated personal assistance
Logistic
High technology design
After-sales service
Marketing
Efficient distribution system
Customization
Research and Development and
Innovation (R&D)
Middle-upper and upper class
Quality and design oriented
Trade fairs
High social status
Key Resources
Exclusive customer relation
High quality raw material
B2B:
Channels
B2B:
DIRECT
High quality product
Design
Warehouses distribution system
IT
Department stores
High technology design
Factories
Stores
Showrooms
Events by public relations
Added value to the business's
product or service
Brand
Catalogue and magazine
Efficient distribution system
Media advertising
Quick respons to a mass demand
Social network
INDIRECT
Final customer-oriented business
Hotels
Restaurants
Car industry
Real State
Airports
Fashion retailers and many others
Prescribers
Architects
Designers
Decorators
Prescribers
Architects
Designers
Decorators
Revenues Streams
Research and Development (R&D)
Factories
Procurement
Advertising and publicity
Logistic
Innovation and quality
Prescribers
Exclusivity
Stores
!
Cost Structure

12. ENVIROMENT ANALISYS
McKinsey 7S
This analysis develops both hard (strategy, structure and system) and soft
elements (skills, staff, style and shared values), of Porcelanosa’s business model.
Strategy
Style
As a family business, all
decision are taken
centralized. It is a global
company, so the
information channels
need to be really
effective and efficient
Staff
Oriented to achieve
quality and designed
products focusing the
corporate image in
excellence, luxury and
exclusiveness
“Porcelanosa has its
strategy both quality
and design of its
products, focusing the
corporate image in
excellence, luxury and
exclusiveness” Jose
Pascual Pesudo,
Marketing Manager
Structure
Shared Values
It is a global company,
market structured, but
familiar. Its expansion
is formulated by its
own stores and
alliances
The whole Porcelanosa, from
bottom to top, is commited to
learning, harmony, collaboration,
communication, cooperation,
creativity, growth, development,
flexibility, passion and precision
values. But quality, innovation
and efficiency are pilars.
Skills
Customer oriended,
retailer and exquisite,
communicative,
creative, effectiveness
and efficiency,
analytics, motivated or
analytics among others
!
System
“Porcelanosa bet
heavily on IT to
automate the most
production processes,
distribution and
aperture of new
stores” D. Manuel Gil
Cantavella IT Manager
12!

13. Pestel analysis
In this section you will find a list of factors related to the environment that
surrounds Porcelanosa in aspects such as politics, economic, social situation,
technological, environmental development and legal system. They can affect
positively or negatively to the general activity of the company.
Political
Government policy
Political instability in overseas
markets
Foreign trade policy
Tax policy
Labour law
Legal
Taxation
International legislation
Trade restrictionTrade
restriction
Economic
Labour economic situation
Interests and inflation
Market cycles
Credit funding/facilities
Commercial policy
Regulative entities
Country development level
Exchange rates inflation
Norms
Commercial policy
GPD per capita
Porcelanosa
Social
Environmental
Demography
Consumer attitude
Limited natural resources
Waste disposal and recycling
procedures
Consumer profile
Ethnic and religious factors
Technological
Competitors technological
development
Technological maturity
Financing research
Innovation potentiality
!
13!

14. Porter’s 5 Forces
With the Porter’s five forces we will identify and analyze the five
competitive forces that shape every industry, in Porcelanosa’s case the tile and
ceramic sector, in order to determine the weaknesses and strengths of it.
2. Potential of new entrants
In order to approach Porcelanosa, companies can find barriers
to entry in the industry. First, the company has a depth
knowledge about all its products, then the companies who
would reach its position would need so many time on learning
and carrying high costs of entry. And secondly, they also may
need to adapt the machinery to the latest techonology systems
as Porcelanosa has a high level on innovation technology.
5. Threat of substitute
products
Porcelanosa has clearly
distanced itself from the first
competitors when the company
began its diversification
transforming them into
substitutes. Those ones can be
substitutes of the Porcelanosa’s
ones, but not replacing them at
all. Companies like Leroy
Merlin, the german The Singular
Kitchen, Roca, the wide range of
tile companies from Castellón or
even IKEA.
1. Competition within
Porcelanosa industry
Porcelanosa Group being leader
in each sector in which has
presence has been approached
by many companies giving
similar value proposition at
similar price as Fiandre
Architectural Surfaces, Grupo
Concorde, New Pearl Ceramics
Groupp, Alfagres and Daltile.
3. Bargaining power of
suppliers
The company has a wide range
of suppliers all of them spread
worldwide focused on reducing
lead times to accomplish with
the quick response feature of the
company and its effectively
distribution system. Then,
looking backward on the supply
chain we can consider that there
is a neutral supplier power on its
environment.
4. Bargaining power of customers
Paying attention to the other side we find the target market segmented
into B2C and B2B. On the first hand, the final customers (B2C) are who
are looking for something exclusive. This exclusity brings a top quality
and edge fashion and innovative products or services, which satisfy
their need for their home. On the other hand, Porcelanosa has a wide
range of business customers (B2B) as hotels, car industry, real state and
many others, or prescribers like architects or designers focused on
professional drafts or customers’ homes. Both segments have no
bargaining power obtaining in this way a neutral buyer power.
!
14!

15. ANSOFF MATRIX
PRODUCTS
Current
New
Krion
Current
Ceramic
and tile
industry
Ecologic
product
Natural
product
MARKET
MARKET PENETRATION
Kitchen
and
bathrooms
Health
&
wellness
New
Europe
PRODUCT DEVELOPMENT
USA
Spa
home
MARKET DEVELOPMENT
!
Building
systems
DIVERSIFICATION
15!

16. Since Porcelanosa was founded in 1973, the company has been featured
by its large diversification within the ceramic and tile world, establishing this
factor as its growth strategy as you can see in this chronology.
1973
1986
1987
1993
1999
2001
2001
2004
• Porcelanosa: passion for detail and quality
• Venis: exclusive and surprising design
• Gamadecor: state-of-the-art kitchen and bathrooms
• Systempool: the benefits of water
• L'antic Colonial: the very essence of nature's own materials
• Butech: high-tech building solutions
• Noken: efficiency and sophistication in bathroom equipment
• Urbatek: products for large-scale projects
Taking the entire chronology and ANSOFF matrix into account, we can see
that in the Porcelanosa’s business model predominates the diversification as
growth strategy focused always on the customer. Although despite this strategy,
the group has also commercialized new products within the market where it is
present laying on its own supply chain, carrying out a product development
strategy. At the same time, since its beginning Porcelanosa the company has
gradually build a market development strategy going overseas based on a sales
analysis following the best sales rate in order to know how worthy is doing
business in the country selected. With the last enterprise, Urbatek, the group has
wanted to consolidate its position in the main market from where it was born
commercializing more in depth the porcelanato among the traditional products.
All of this represents a market penetration in the ceramic and tile industry sector,
which plus its internationalization the group has been establishing in different
parts of its supply chain but not depending on them, in other words, if one
company of the group falls, it doesn’t drag the entire group.
Following all those strategies, especially the diversification, Porcelanosa
has positioned itself as leader in many services about bathroom, kitchen, floor,
!
16!

17. walls and even furniture, in order to have One source for all your needs, knowing
to create a innovative, international and branched group and converting an
industrial product into a consumer product.
!
17!

18. SWOT MATRIX
The term SWOT is an acronym that indicates the first letters of the words
strength, weaknesses, opportunities and threats. Two of them, strengths and
weaknesses are related to internal and controllable variables of the company,
object of this study. On the other side, opportunities and threats are external and
non-controllable factors connected to the general environment of the market to
which belongs Porcelanosa.!
STRENGHTS!
WEAKNESSES!
! Limited scale of operations
portfolio
Internal and
controllable
! Diversified product
! Difference in pricing
! Strong brand portfolio
according to the companies
(quality and design)
(of the same sector)
! Efficient distribution service
! Deeply dependent on Italian
(logistic)
and German technology (lack
! Productivity independence
of in the national area)
OPPORTUNITIES
External and
non-controllable
! Growth in demand for
global wood products
! Positive outlook for global
construction industry
! Strategic growth initiatives
!
!
THREATS
! Stringent legislative and social
regulations
! Decreasing of the national
products demand
! Increasing of substitutes
products.
18!

19. BIBLIOGRAPHY
Documents:
•
Audit of Porcelanosa’s financial statements. [Castellón]: Colegio de
Registradores de Castelló/Castellón, 2012. 83p.
•
AZNAR, Álvaro. Advanced strategic management systems. [Valencia]:
Estema Business School, 2013. 37p.
•
AZNAR, Álvaro. Strategic planning applied to international companies.
[Valencia]: Estema Business School, 2014. 71p.
•
CARRILERO CASTILLO, Agustín. Strategic decisions on Operation
Management. [Valencia]: Estema Business School, 2014. 31p.
•
PERALT RILLO, Agustín. H3S. [Valencia]: Estema Business School, 2013.
29p.
Tools:
•
SABI [Consultation: Sunday, 26 January 2014]
Web pages:
•
http://www.businessmodelgeneration.com [Consultation: Tuesday, 14
January 2014]
•
•
http://www.expansion.com [Consultation: Thursday, 23 January 2014]
•
http://www.iti.es [Consultation: Monday, 27 January 2014]
•
http://www.porcelanosa.com [Consultation: Monday, 13 January 2014]
•
http://www.prezi.com [Consultation: Monday, 20 January 2014]
•
!
http://www.cincodias.com [Consultation: Thursday, 23 January 2014]
http://www.registradores.org [Consultation: Monday, 27 January 2014]
19!