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DECATHLON INTERNATIONAL BUSINESS STRATEGIES
Transcript of DECATHLON INTERNATIONAL BUSINESS STRATEGIES
Goes to SOUTH AFRICA
TEAM 9 :
Marie Christine Julliard
Hui kai lok
GEOGRAPHY AND CULTURE
GOVERNMENT, LAW & ECONOMY
1 - Presentation
2 - South of Africa
3 - Strategies (internal & external)
4 - Mode of entering South Africa
5 - Advantages and challenges
Low prices of own brands
Autonomous R&D department for each brand & branch
Control up & downstream value chain
Retailer & manufacturer at same time
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
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
Provide customized products
MODE OF ENTERING SOUTH AFRICA
Different Ways of Entering the South African Market
FDI - The Best Choice for Decathlon ?
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
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