In 1996, Camaieu, the group that markets apparel for men women and children, experienced significant financial difficulties. Thus Jean Duforest, co-founder of Camaieu in 1984, decided to partner with Jean-Luc Souflet to acquire the group. This tandem leadership led to the launch of the brand Okaïdi in 2000. These two men, with their complementary skills, shared common human values and economic policies.
Since the launch of the brand, Okaidi has been a market leader. Nevertheless, an economist, or a specialist in the industry who provides market saturation in the short term, sooner or later leads to the phenomenon of concentration. We will conduct an analysis of this company and the environment in which it operates, to identify the capabilities it has and the way forward that it should adopt in order to ensure sustainability.
SWOT analysis focuses on assessing the strengths (Strengths) and weaknesses (Weaknesses) of the enterprise on the one hand, and on identifying opportunities (Opportunities) and threats (threats) present in the environment on the other.
This analysis is known as the LCAG model, and was been proposed for the first time in a book signed by learned professors such as Christensen, Andrews and Guth (Harvard Business School).
The LCAG model confronts the company's competitive environment by evaluating the more or less adaptive skills, and the company's own resources, with respect to the constraints imposed by this environment. There are two types of firms that seem to perform well: those that occupy a small market share and support their strategic position on the construction of an identity that valued by customers, and those who build their strategic position on a large basis, allowing them to benefit from economies of scale and pursuing a policy of aggressive pricing. Cost leadership and differentiation by recoverable research, are the two types of generic strategy.
The strategic choices for Okaidi are differentiation and outsourcing. A differentiation strategy seeks to build the competitive advantage of the company on the specificity of the product it offers. This specificity is recognized and valued by the market, or a sufficient portion of it. This strategy allows Okaidi to avoid direct competition by offering a price which is hardly comparable to that of its rivals.
On the other hand, Okaidi has opted for a strategy of outsourcing its production and transportation through the use of subcontracting, allowing it to "focus on its core business, share risks with their providers, and to be flexible and responsive to a changing market (new model, fashion taste etc). On the financial side, this allows it to reduce costs and increase product quality (competition between providers) and thus free up financial resources to be reallocated for the formation of a competitive advantage.
Tags: Okaidi, competitive advantage, strategic choices, differentiation strategy, economies of scale, sustainability, Camaieu
[...] Moreover, market liberalization is increasing the number of potential suppliers, which is an advantage with respect to the cost of performance, since many suppliers are in competition. Rivalry among direct competitors The rivalry between existing firms takes the form of price competition, advertising battles, introduction of new products, and improved services or guarantees given to customers, all in order to obtain an advantageous position. Several factors influence the rivalry between the companies: The number and relative size of companies: In this study, we see that the number of firms is relatively high, but the financial power between the competitors is unequal. [...]
[...] The study of the competitive forces is a prerequisite for any strategic thinking. It identifies the success factors and the profitability and risk. The study of the competitive forces Porter's diagram for strategic choice and competition B. Application to the company Okaïdi To assess the factors that shape the competitive dynamics in a given field of activity Porter identifies five elements: The threat of new entrants New entrants in an industry bring with them new skills, the desire to gain market share and often substantial resources. [...]
[...] On the other hand, Okaidi has opted for a strategy of outsourcing its production and transportation through the use of subcontracting, allowing it to "focus on its core business, share risks with their providers, and to be flexible and responsive to a changing market (new model, fashion taste etc). On the financial side, this allows it to reduce costs and increase product quality (competition between providers) and thus free up financial resources to be reallocated for the formation of a competitive advantage Functional policies Production: Okaïdi chose to outsource its production to focus on its "core business", which is the store. [...]
[...] budget The clothing sold have original designs (creativity and innovation) Supply stores (architectural style, staging products, marketing, and customer relations) Offer product (clothes offered are identical worldwide and should be enjoyed around the world) Strong growth in the number of stores in the last 7 years 12 stores opened internationally 30% of franchisees Quality services and products Studies and regular meetings about product quality The Brand represents a lifestyle, or a specific style in a single market Logistics Masters of logistic flows Outsourcing of production and transportation infrastructure, to be flexible (cost control) Quality of the information system between suppliers and stores II. [...]
[...] Indeed, the effectiveness of this regulatory action depends largely on how the members of the EU-15 will implement this directive. Bargaining power of customers Customers try to get price reductions, negotiate more extensive services or better quality, by adjusting the supply of competition. All these actions are detrimental to the profitability of the business, and their intensity depends on the power held by different groups of customers. Generally, the bargaining power of customers is high when competitors offer similar products, but Okaïdi's offer differs from that of other firms in the sector due to the design of its products, the architecture of its stores and the strong emphasis on customer relations. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
