If You Can't Beat Them Join Them

With its new image, the company was re-oriented towards various construction services including: wall partitions, fake ceilings, carpentry, windows, and, in some cases, whole building construction.

This year, business has dropped. Mora attributes this fall to two main causes: the decrease in construction projects like buildings and large residential projects, and the competition posed by former employees who now work on their own. The first mentioned is completely out of their control, so they have concentrated their efforts in facing the competition, by joining it!

The company was forced to reduce personnel, and some of the laid-off employees decided to remain in the business, on their own, by offering their services at a lower cost. They generally produced their own materials, which, usually, did not meet quality requirements for construction. This fact convinced Engranaje company executives that the strategy to follow was that of providing materials to the former employees, instead of competing against them.

Even when this strategy, a result of the need to change or die, could boost Engranaje, its executives continue to search for new markets that will allow the company to overcome the contraction of the construction market.