Strategic study of Decathlon

Abstract

For over a decade, the retail brand Decathlon, has been the European leader in the retail market for sporting goods. This dominance manifests itself in France as the popularity of the slogan: "A background form" and the growing number of superstores located mainly in the outskirts of cities, whose sizes range from medium to large. The Decathlon group, anxious to maintain this leadership through a long-term growth and a strong managerial policy, demonstrated innovation in various sectors.

They engaged in the creation of lines of technical clothing and sportswear, as well as in the material for sports equipment. Thus, by marketing its own brand "passion" (developed for each universe of stores) Decathlon diversified its business distribution in the trade of the manufacture of sporting goods.
However, competition in this sector has increased in recent years, with the expanding supply of sports goods in hypermarkets, and the concentration of major competitors like Inter Sport.

In this document, we will focus on the strategy that Decathlon has put in place in its sector to sustain its position in an increasingly competitive market.
Thus, in a first part we will offer an overall presentation of the Decathlon Group, through its history, its business and its key figures. In the second and final parts we will develop the competitive landscape of the famous French sporting goods retailer, and conclude by throwing light on the construction of its competitive advantage through the analysis of its strategic development paths.

Finally, in the conclusion we propose recommendations and guidelines that may b in the interest of Decathlon.
The chain was founded in 1976 by Michel Leclercq who opened his first store in Englos, near Lille. It was the first supermarket to sell sporting goods for free service aimed at both practicing recreation and competitors. In addition to selling products, Decathlon offers the opportunity to repair and maintain all sports equipment in its workshops. In 1985, the International School of Trades Training Centre Decathlon welcomed its first class.

It quickly became the preferred place for the acquisition and enrichment of the most varied skills.
Why was the name "Decathlon" selected for the sign? The decathlon is a very demanding and comprehensive sport encompassing ten different sports. It is often called "the showpiece event" in sporting competitions, given the sheer athleticism required. Decathlon has chosen this name, as it aims to combine all these qualities in its daily operations.

The company produces its own products, and has grown internationally. To provide a broader and more efficient range, it offers products best suited to each use, Decathlon created its own brand in 1986, which was fully managed by its subsidiary Decathlon Production. Today, Decathlon produces over 50% of the items that are present on its shelves. The same year, the channel started its internationalization with the opening of a store in Dortmund, Germany.

In 1989, Decathlon Production becomes Decathlon Production International. Offices of "design-production' has now been established in Thailand, Korea, Taiwan, Hong Kong, Spain, and Italy. The goal is to balance Decathlon gradually with the trade balance of each country where it operates for to production and distribution. In 1992, Decathlon played the card of regionalization to be come closer to its clients. Thus training, production, and information technology were gradually regionalized.

In 1994, Decathlon installed its international headquarters on the campus of Villeneuve d'Ascq. In the year 2000, Decathlon was a limited company with a Supervisory Board and a Management Board which further strengthened its large size in the distribution of sporting goods. In recent years Decathlon has continued to expand internationally, such as in 1999 with the acquisition of MVP stores in the U.S. and the opening stores around the world (London in 1999, and Amsterdam and Lisbon in 2000). The Decathlon group has set up a dynamic and "responsible" management. The organizational structure of Decathlon is complex, and the hierarchical levels are well defined.

Tags: Decathlon, MVP stores, Michel Leclercq, European leader, managerial policy