Financial Situation of D.R.G.

Competition
Porter defines competition as a group of companies or firms that offer
a product or types of products that can be substitutes among them
(Porter, 2009). Distribuidora de Repuestos Guayaquil (D.R.G) has many
competitors that are importers as well, some of these are Promesa
(Productos Metalrgicos S.A),
Interview
1. Where do the imports come from?
The main imports of the company come from Far East. The 90%
of the imports of the company come from Taiwan, South Korea
and Japan that are the most important manufacturers.
2. In which type of container do the imports come from?
There are two types of containers, one of 20 feet and the other
one of 40 feet. The containers dont use any type of refrigerator.
3. Which is the capacity of the containers?
The 20-foot containers have 27 cubic meters of space and the
40-feet container have 65 cubic meters.
4. How does the merchandise come to the country?
The merchandise arrives stacked and wrapped in cardboard for
export. Pallets are used as a base inside the containers.
5. How is the payment process in Ecuador Custom?
When the container (both 20-40 feet) arrives at the Custom,
immediately the liberation or nationalization of the merchandise
starts. In this step the customs dispatcher is used, who is the
person in charge of entering all the codes to the system of the
SENAE so that in turn the settlement of the taxes to be paid is
fulfilled. Once the corresponding values are paid according to the
tariff customs, the customs classifies the importation to verify it;
this can be called customs clearance. After this the merchandise
can be removed.
6. Who is in charge of getting the merchandise out? Which other
functions does this person have?
 Other company is in charge of the removal of the container of
the Customs to transport it from the port to the warehouse. The
dispatcher gives an exit order so that the person in charge of
removing the container (Fujimori) can do it. The only function of
this person is to remove the container.
7. How is the merchandise transported? Owned trucks or rented
trucks? How many trucks are used? How much storage capacity
does the truck have?
The company uses rented trucks. The use of trucks depends on
the containers, if its one container then one truck. If it were a
40-feet container, the truck needed would be a 10-20 ton truck.
And if it is a 20-feet container the truck would 8-12 ton truck.
8. How many people are involved in this process?
To unload a 40-feet container, we use 15 to 20 workers. When its
a 20-feet container, 10 to 15 workers.
9. Where is the merchandise taken? Are there warehouses? Where?
The merchandise is taken to the companys warehouse that can
be located between the streets Vlez and Los Ros. Its a 4-floor
building, where the merchandise is classified, inspected and
revised.
10. How is the merchandise distributed?
The merchandise is distributed after a list with the products and
prices are made. This list is sent to all the sellers, the sellers start
to visit their clients all around the country. The orders are made
through the web, to be evaluated by the Accounting Department
and to see if the client has debt. When it is approved, the order
goes to the Billing Department to dispatch the merchandise from
the warehouse. Sometimes the services of Servientrega are
required depending if the client desires it or if the merchandise
requires a insurance that Servientrega has. Sometimes our
company assumes the cost of the transport by Servientrega
depending on the clients.
11. What transport do you use for Guayaquil?
 The company is the owner of a truck that is used to deliver the
merchandise to the clients that are in Guayaquil. The system
that is used is FIFO (First in First out). The truck leaves two times
a day.
12. How do you manage with the other cities?
The truck that works in the city of Guayaquil is the main truck
that takes the merchandise to the other trucks that leave to
different provinces.
13. Who are your clients? Wholesalers? Retailers?
The clients are only retailers. They are in charge of selling the
product to the final customer.
14. Do you consider that you have a problem in the companys
channel distribution?
Nowadays there are not as many problems as before, the
robberies have decreased so the trucks that delivered the
products to the warehouse and the trucks that distribute the
products to the other provinces are safer.
15. What would you do to improve the companys channel
distribution?
The company is implementing a new system in which the seller
takes the order and it goes directly to the Billing Department. It
takes about 5 minutes to register the order and immediately it is
dispatched the same day. The client receives the merchandise in
less than 24 hours.
16. Which is your target market?
The companies that sell spare parts of cars to final costumers
compose our target market. The clients are classified; the clients
that have several years have the benefit of receiving credits.
Some clients specialize in specific products.
17. Who do you consider to be your direct competition?
There are several direct competitors that are importers as
PROMESA, JAROMA, COJAPAN, among others.
18. Which strategies has the company used to stay in the
market and face competitors?
 The main strategy that the company has always used is to give
added value to the products. But mostly innovation is vital for
the company.
19. What is the companys capacity to satisfy the client
segments?
A characteristic of the company is to have spare parts for all the
car models that keep coming every year. In this way the clients
can always find what they were looking for.