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DECATHLON INTERNATIONAL BUSINESS STRATEGIES

TEAM 9
by

Hédi Guern

on 27 November 2013

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Transcript of DECATHLON INTERNATIONAL BUSINESS STRATEGIES



Goes to SOUTH AFRICA

SOUTH AFRICA
STRATEGIES
INTERNAL FACTORS
TEAM 9 :
Marie Christine Julliard
Detlev Goebloed
Hédi Guermouche
Grégoire Himely
Hui kai lok
Isabel Giralda

GEOGRAPHY AND CULTURE
SPORTS
GOVERNMENT, LAW & ECONOMY
CRIMES
PRESENTATION
TURNOVER
RETAIL COUNTRIES
AGENDA
1 - Presentation
2 - South of Africa
3 - Strategies (internal & external)
4 - Mode of entering South Africa
5 - Advantages and challenges
Competitive Advantage:
Low prices of own brands
Autonomous R&D department for each brand & branch
Control up & downstream value chain
Retailer & manufacturer at same time
International Experience:
International since 1986
Africa only one retail store: Marocco
Failures: Denmark; US market; Argentina
Entry strategies: organic growth
Monopolistic Advantage Theory :
Control of R&D departments
Differentiation aspect: own brands
Monopolistic power: retailer&manufacturer
Huge retail outlets
Internationalization Theory :
Control foreign operations
Trouble finding external partners
OLI Model :
Successful entering of several foreign markets
Competitive advantage
EXTERNAL
FACTORS
PESTEL ANALYSIS
WHY SOUTH AFRICA ?
One of the countries with the largest middle-class populations (findings by McKinsey Global Institute)

South Africa is an incredible country with a first-rate sport industry, countless business opportunities for international firms and an exciting future.

(By Nick Keller, the Founder of Beyond Sport)
Growing Sports industry
HOW TO ENTER THE COUNTRY ?
Get a presence in South Africa :
Join some charity activities
Donate money for new infrastructure
Hold some campaigns for health care related to sports
Step-by-Step Approach
Develop reputation
Provide customized products
MODE OF ENTERING SOUTH AFRICA
Different Ways of Entering the South African Market
FDI - The Best Choice for Decathlon ?
Greenfield investments
limits
ADVANTAGES AND CHALLENGES
Decathlon is the global industry leader
As a growing company attracts consumers and suppliers
Decathlon follows a cost leadership strategy
=>
sells its products at a lower prices than its competitors by getting a quality / price

Decathlon benefits from economies of scale
=>
has a large volume of production so you can buy raw materials at the lowest cost and sell it cheaper
ADVANTAGES
CHALLENGES
Creates barriers to entry for new competitors
Invests in R&D to achieve a system of innovative and creative organization
The relocation allows to follow the low-cost strategy
THANK YOU FOR WATCHING
Full transcript