In 1976, Michel Leclercq Roncq inaugurated a store selling sporting goods, and named it Decathlon. His challenge was to equip all athletes with the best kind of sporting utilities available at the best price. Today, Decathlon Group with about 3.4 billion euros in turnover in 2004, is present in 23 countries with over 330 stores (including over a hundred international stores).
The group has a resolutely oriented strategy of brand equity with over seven brands corresponding to seven different sports (Quechua for the mountains, water sports Tribord, Decathlon Cycle for cycling, Geologic sports nature such as fishing or riding, for Kipsta team sports, Domyos for running and fitness, Inesis for tennis) plus the two brands peripherals (Aptonia food, Geonaute for manipulation).
The history:
1976: Opened its first store in England.
1986: Creation of the subsidiary, Decathlon Production and opening of its first store abroad.
1992: Opening of its first store in Spain.
1993: Opened its first store in Italy.
1999: Decathlon operated 215 stores in 20 countries including Italy, Spain, Germany, Belgium, Holland, Britain, Denmark, Brazil, and Argentina.
By 2004, there were more than 330 stores worldwide.
Decathlon opened its first store in Shanghai, China in 2003 and soon opened 5 other branches in 2004. In the same year, Decathlon opened its second store in Brazil with three new stores that came up in 2005. A domain is a set of business where the key success factors (CSF) are similar and rely on the resources and the shared expertise. Thus, the activity of selling sporting accessories in Decathlon stores will be considered as a "Strategic Business Area" and therefore will be excluded from the analysis of leasing business activities, balanced food, online sales and Trocathlon.
Decathlon is positioned on the same "SBA" just as the other companies like GO SPORT, INTERSPORT, SPORT 2000, and offers a wide multi-sport platform. The three components of the DAS Decathlon:
Function performed: Sporting accessories
Technology used: Sound advice on the sale of stock
Target audience: All kinds of sports and its players offering a wide range of choice with a large display of articles.
The specialist who most often shops in their city, do not see themselves on the same SAR as Decathlon. Indeed, they are not intended for the same client. Their clients sponsor a particular sport and do not come to these shops to buy products that belong to another category of sport. However, Decathlon tries to cater to the needs of different consumers by equipping themselves with all kinds of accessories.
DAS stores will be studied by using traditional methods of strategic analysis: Porter's Five Forces model will examine the force that determines competition. The study of segmentation and strategic groups allows to choose between three options of generic strategy.The competitive advantage gained by controlling costs is the subject of our study in this document.
Tags: Michel Leclercq Roncq, Decathlon Group, Kipsta team sports, Decathlon Production, SAR, Technology, Shanghai, Strategic Business Area, Geologic sports, Belgium, Holland, Britain, Denmark, Brazil
[...] The sign "behind" in terms of fashion and claw (sub-referencing of Strong price competitiveness: brand products carrying values) the trump card of the Decathlon belonging to large retailers Distribution mainly through provides a value for value for the suburban shopping malls while money. the sport is becoming more urban Mass distribution in the dynamic urban areas, and dense settlement abroad. Policy of Effective Marketing: Advertising on the site of dynamic sales and significant resources allocated to vendors advisers separate departments, sponsoring recognized champions associated with MDD to assist in the recognition of its brands by enthusiasts and elite athletes. [...]
[...] Top 10 sports played regularly or occasionally by the French: Source: SIMM 04 Possession of sport article: Personal possession: Bike: Tennis Racket: Ski boots: Skis: 11% More than half of the French have a personal cycle/bike ( 57.5 B.The clean environment at Decathlon CUSTOMERS: There are three categories of customers: The "expert" The or extreme" type The "family" type EXPERT: This segment consists of athletes who prefer an intensive form of practice entering the realm of competition and research performance.Their requirements for equipment gives them a high level of product information. [...]
[...] 3.The sectoral analysis The Five Forces Model of Porter Bargaining power of Clients: This is important because they can change the distributor without any cost and are very sensitive to mode of Sports Pressure Products substitution: The purchase of sports equipment depends on the sport itself and is more or less cyclical Bargaining power of suppliers: The subcontractors have a strong partnership and there is a strained relation with the major brands and Decathlon is its own supplier. Potential entrants and entry barriers: This refers to the significant capital needs, the need for expertise in the field of sport, difficult differentiation, and the need to be part of a network of distributors Rivalry among competitors: Supermarkets, specialty retail outlets, offer multi-sport facilities with different distribution channels (stores, mail order, e-commerce, sales plants) Potential entrants and barriers to entry Distributors of sports goods occupy the entire market in terms of supply and diversity of price (low-end to high-end). [...]
[...] Thus, Decathlon has a pricing policy in line with that of the mass distribution and generally less than those carried out by retailers of sporting goods and department stores such as The Samaritan (Samaritan Sport). In contrast, specialty retail shops such as shops dealing with articles for dance, have a focused strategy. They only sell products specific to a certain type of consumer and therefore the prices and the quality are higher. Finally, some big brands have started to adopt different strategies on products such as Dior with its sneakers. [...]
[...] Evolution of the sports market (billion euros): Source: Federation of Professional Business of Sport and Recreation Distribution channels Distribution of Sales sport Integrated Trade (GSS) 42% Commercial partners and 19. franchisee Trade in personal equipments 15. Hypermarkets 9. Other specialized stores 7. VPC (Mail) 4. Independent retailers 2. Mono-brand stores 2. Source: FPS Today, supermarkets and specialty shops integrate and dominate the distribution at the expense of independent distributors. These independent distributors held almost the entire market 35 years back. [...]
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