International strategy analysis of Galeries Lafayette

Extract

[...] Knowing all these factors definitely helps the company assessing its strategy and being aware of its main risks and opportunities. PESTLE is the acronym standing for Politic, Economic, Social, Technological, Legal and Environmental, which we will detail below. POLITIC. The main politic factors being able to have an impact on Galeries Lafayette group are politic stability or instability, political wars, geopolitical risks, politics decided to fight against COVID19 pandemic, allowance to travel abroad or not, tariffs, etc. Wars between China and the rest of the world would negatively impact GLG since Chinese are representing an important part of the French stores, for example. [...]

[...] Recommendations The international expansion of GLG is progressing slowly. So far, this slow strategy has been successful and has allowed the group to only make a few strategic moves, but interesting ones. Recommendations could be: To try to be back to pre-COVID crisis on both domestic and foreign markets before further developing abroad To delay some further internationalization programs in countries currently being out of the group scope To get concentrated with a short-term horizon on countries where the group already has a presence in and an exposure to To continue assessing the risks very carefully before launching an international development To pursue its development in China, as the country already has quite fully recovered from COVID-19 crisis and still represents a massive revenue potential for the group To identify a few more targets where international development could be interesting (Japan? [...]

[...] Internal analysis After having conducted an in-depth analysis of external factors playing a role on Galeries Lafayette Group, we will be conducting an internal analysis. Company portfolio Galeries Lafayette group claims to be currently owning 280 stores and online sales platforms around the world for all its brands: Mauboussin, EATALY PARIS, BHV, LA REDOUTE, Louis Pion, Bazar Chic, Royal Quartz Paris, and Galeries Lafayette themselves of them are located abroad: 8 stores from Galeries Lafayette (Dubai, Istanbul, Berlin, Pekin, Djakarta, Doha, Shanghai, Luxembourg) and 2 from BHV (Beirut and Dubai). [...]

[...] Customers considered individually are quite insignificant for a massive group as Galeries Lafayette group. Nevertheless, customers considered as a group can make a difference to GLG. If we imagine a scenario where Chinese for example refuse to visit GLG stores and to make any purchase in the group shops, this would have a significant impact on sales for the group. This power then seems to be quite balanced. The thread of substitute products is quite high. The GLG core business is to propose multibrand stores. [...]

[...] International strategy analysis of Galeries Lafayette This assessment has been done on Galeries Lafayette Group. The group has been a pioneer in terms of business and distribution, with stores located in traditional city centres. The group has then diversified its core-business and acquired quite a lot of companies. BHV Marais, La Redoute, Mauboussin, Louis Pion, BazarChic or Eataly Paris are some of the companies now pertaining to the group. Galeries Lafayette Group (GLG) is now specialized in multicanal distribution, skilfully combining stores, websites, etc, to create value. [...]