DECATHLON Case

Contents

Introduction

The environment (PESTEL & PORTER)

The SWOT model

The key success factors

Building a competitive advantage

Conclusion INTRODUCTION

 Decathlon is the European leader in the sporting goods market.

 Decathlon maintain its leadership through a long-term growth and strong managerial policy, innovation in various sectors such as a creation of lines of and and

 Competition in this sector has increased in recent years with the expansion of the supply of sporting goods in hypermarkets

 In a market increasingly competitive, it is necessary to focus on the strategy to sustain its position

 "Athletes satisfied is our business." PESTEL Analysis

 Political

. Over the 20th Century, people are allocating more time to leisure and sport. . Various Government around the world are promoting sport to prevent obesity and helping people to be more active.

 Economic

. Increase in the purchasing power specially in the BRICS. . When income increase, people are willing to spend on leisure and sport. . During hard times, Spending on Leisure and Sport goods slow down. PESTEL Analysis

 Social: . Boom of the leisure and sport in the developing countries due to a rise of free time and an increasing in available saving.

. The potential customers is increasing, women are doing sport more than ever.

. People are willing to pay attention to the image they send to society, the sport goods has to be fashionable too.

. People buy sport goods even if they are not doing sport, they are willing to show that they are dynamic, healthy and strong. PESTEL Analysis

 Technological

. People and athletes are demanding of efficient and comfortable sport goods. . Manufacturer are facing race of technology to meet customer demand

 Environmental and Legal

. Sport Manufacturer had value rules to respect, teen ager employment. . Tariff barrier to reduce importation of sport goods to prevent unfair competition. 5 Forces Analysis

M

L W H

H SWOT analysis

1. Stores located throughout the world with 800 stores all over

S 2. Group is largest sporting goods reseller in domestic market t r

e 3. Large variety of sports goods in affordable pricing for all classes n

g of consumers t h 4. Own private label brands to get high brand recall 5. Innivation 6. Strong and innovative marketing since years have created a strong brand retention in the minds of customers W e

a 1. Limited global presence as compared to leading global k

n companies e

s 2. E- retailing is gaining importance but still company has s

limited presence on the same SWOT analysis

O 1. Brand building by tie-up with emerging p p clubs/teams/players o r t 2. Company has opportunity to innovate on technology front u n to design new products i t y 3. Creating high brand awareness by exploring advertising

media tactically

T 1. High inflation doesn't give opportunity of cost advantage h r in competitive environment e a 2.High competition from global and domestic players t s

3.Threats from other brands who provide goods at lower price KEY SUCCES FACTORS of DECATHLON

 MANAGEMENT SKILLS: . Implanting: High capacity for investment implementation . Relations with the suppliers: strong partnerships, and creativity, innovation of new products . Logistics: Efficiency & perenity of DECATHLON brands with a mastery distribution channel . Human Ressources: Rigorous recruitment policy (skills & competencies required & training) KEY SUCCES FACTORS of DECATHLON

 MARKETING SKILLS:

. Communication policy: Mass to market & low prices with a sports activities positionning . Advertising in various supports (magazines, radio) . Services: satisfaction & customer relationships . Experts sellers, consulting, equipment rentals,… . Development of points of sale KEY SUCCES FACTORS of DECATHLON

 DIVERSIFICATION & QUALITY PRODUCTS . Wide range of products (amateur to advanced) . Range of each use & kind of sports activities . Development of own brands (Tribord, Btwin,…) to maximize profits because intermediate margins are reduced . Best quality/price ratio . Research & development: Innovation, new materials,

 KEEP COMPETITVE ADVANTAGE & CONSOLIDATE ITS IMAGE OF PERFORMANCE & QUALITY PRODUCTS AT THE BEST PRICE. Competitive Advantage

 Consumer’s preference of the firm.  Fitting with the consumers demand.  Low Price.  Cost reduction.  Development and produce its own product. CONCLUSION

 Decathlon is the leading French distributor

 Compared to the competition with they have a very special position: they offers a very wide range quality products at a very attractive prices

 The key success factor Decathlon is primarily the marketing of its brand "passion" and especially the brand "Quechua" which alone makes € 400 million turnover

 strategy of cost leadership, the company ensures a strong financial health and recovery of margins in its industry "production" RECOMMENDATION

 Develop its international expansion through store openings and through the Internet.

 Decathlon should continue its sponsorship actions (presence in various sports events: competition, climbing, water raid)

 Develop brand awareness "passion" to follow the new trend of consumers