HGD, The Competitive Intelligence Approach in the Service of SME International Development

The main activity of HGD SA, an SME located in Belgium, is manufacturing hardware for the building sector, such as fittings for shutters and windows, for example. The company was founded in 1854. It then manufactured hinges using only the power produced by a water wheel. It became HGD SA in the summer of 2005, when it was taken over by a French entrepreneur, also a consultant engineer. In late 2010 the company has a turnover of EUR 1.15 million for a staff of 17. In 2010 HGD products are mainly sold on its domestic market. However some export deals -in the Netherlands, Luxembourg and France in particular- are initiated by spontaneous consultations, even though the company does not have an active export policy. Towards the end of 2010, after a long phase of reworking company activities and achieving initial results in terms of increasing order volume, the CEO noticed that orders were stagnating as a result of the economic crisis. He is now wondering about the possibilities of developing his business and envisaging international expansion... He therefore contacts you yearend 2011, requesting information that will help him make a decision, describing the situation in these terms: "The problem is that my backlog of orders is stagnating. The economic situation is not looking good at present. In parallel, my company's production capacities are quite considerable due to investments over the last five years, and are at present under-exploited. I am therefore envisaging international expansion, mainly in Germany, on the DIY market. I want to achieve this expansion with the existing products, in order to limit the costs, although I am of course open to innovation and adaptation proposals. I need a complete and reliable study to limit the risks related to my decision.