Le Coq Sportif

cheek of le coq In 2005, a Swiss belongings buys the brand Le Coq Sportif. Indeed the results of the brands were well below the desired expectations. With the partnership of Sir Robert Louis Dreyfus, a not bad(p) Swiss argumentman who was leader of the assembly including Adidas, Le Coq sportif sees the opportunity for a fresh start with this strategical every(prenominal)iance for the future. Airesis immediately deposit up a plan to revive the brand that demonstrates the pie-eyed interest of the separate to give new life to this legendary French brand.hither is a graph explaining the g altogether overnance of the brand Le Coq Sportif since it creation (1882) until the takeover by the Swiss holding Airesis. Few words about Airesis Historic part HPI Holding AG is a name that marked the industrial history of Hesperian Switzerland since 1920, date of creation of the company. Hermes Precisa International (causely Plants Paillard) has built its success on the achievement of typ ewriters Hermes known internationally. Since 1981, the holding company HPI has been used as an investment fomite for investments in new technologies that view suffered damage in the indus pick up with honest force in early 2000.Currently, there ar eight entries all together in the sub-holding A2I SA. In 2004, reducing the part value of its sh bes cleaned up the company. A capital increase of the arrival of four participants (the Boards & More group, the group Fidexpert, group and society Ouat Hazard Properties SA). These arrivals agree been extraordinary for the group which has re instald and a new life HPI Holding AG, which has since suit Airesis. The majority shargonholders (Sirs Robert Louis-Dreyfus, Yves Marchand and Marc-Henri Beausire) then set up the new company strategy active management of its investments in private equity and residential property.Today the group owns brands such as * Le Coq Sportif * Fanatic * Ion * North Kite boarding * North Sails Windsurf Here we argon going to explain few words about apiece brand, because nearly of them are unknown. Fanatic In 1999, leaving his first kite a board, Fanatic has to believe in this new trend. With its history in windsurfing, the company was able Fanatic showcase its expertise to make its institution into the sport in the making. Ion In spring 2005, Boards & More brand launches Ion.The technological skills of the mark are gameylighted in the wet suits, neoprene accessories, harnesses, a range of habilitate and carrying bags, all items used in sports on the water. North Kite boarding Kite boarding world leader. North Kite boarding has entered the grocery in 2001 and became leader. This brand has a very good technical train recognized. North Sails Windsurf The company specializes North Sails sailboat U. S. and world anatomy 1 in this sector. Boards & More has acquired the exclusive license for the sail of surfboards since 1981.Its strategic axis is oriented technique and style. Since late 2005, Robert Louis-Dreyfus, former owner of Addidas and Yves Marchand, who was the brag of the three stripes for France, have piped a foothold in the business and have made several(prenominal) good seeds to make 10 gazillion euros with the Swiss investment fund Airesis. And some swelled marketers have been poached in market heavyweights such as Reebok, Nike, Puma and atomic number 80 For example, the arrival of Antoine Sathicq, former CEO of Adidas, which was transferred to the head as universal animal trainer of Le Coq Sportif.After joining Adidas in 1997 as director of sales, this former Procter & Gamble, older 44, joined a new team of Le Coq Sportif establishment since its acquisition by Airesis. A team already marked by the close of this Adidas Swiss investment funds Airesis is held by Robert Louis-Dreyfus, former CEO of Adidas France, Marc-Henri Beausire and Yves Marchand, former CEO of three stripes. The latter assumed the presidency of Le Coq Sportif, regenerat e Olivier Jacques, former majority shareholder. Antoine Sathicq therefore had the task of launching again the Coq Sportif.Porters Five Forces Sportswear Industry Internal Rivalry Fierce tilt Adidas,Reebok, Nike progress Industry generally Non-Price competition Differentiation strategy threat of rising entrants Capital Intensive Strong Brand Following Economies of scale of measurement towering R & D Costs Industry in desegregation manikin Supplier role Raw Materials are abundantly useable bald-faced resources trade good items Cheap labor on the East World. vendee Power Everything depends on Customer Preferences Price sensitivity abridges Growing force-out of retail chainsSubstitutes * Other types of harvestings from other brands * New brands that make the sport to a greater extent ready to wear high-end (15 Serge Blanco, Eden Park ) * Entertainment brand to ease to sport activities (Reading, video games) Internal Rivalry Fierce contest Adidas,Reebok , Nike Mature Industry Mostly Non-Price competition Differentiation strategy Threat of New entrants Capital Intensive Strong Brand Following Economies of scale High R & D Costs Industry in consolidation phase Supplier Power Raw Materials are abundantly available Cheap resources commodity items Cheap labor on the East World. Buyer Power Everything depends on Customer Preferences Price sensitivity issues Growing business office of retail chains Substitutes * Other types of products from other brands * New brands that make the sport much ready to wear high-end (15 Serge Blanco, Eden Park ) * Entertainment brand to ersatz to sport activities (Reading, video games) Explanation 1. Internal Rivalry * Fierce competition In operation in the sportswear industry, there are to a greater extent competitors.Two leaders have the most important share value on the market (Nike and Adidas). The competitors are smaller than the two big groups, which have untold money to invest in ma rketing investment, and can develop good than the smaller. * Mature industry In this market, its difficult to innovate more than more than today. The innovation exists for sure hardly it comes from details. Its really impenetrable to find for the company the perfect innovation. However companies works hard and try to find the best innovation possible to increase their share value. Mostly non- wrong competition In this market, the price war doesnt exist. In effect the competition between companies comes from the marketing, brand image and innovation (sometimes) but not on the price. All the brand are close and cannot compete on the price. * Differentiation strategy A differentiation strategy will surveil a unique position among your competitors. The aim of the strategy is for the business to become unique in the minds of its nodes. For this reason, a small business needs to hold a product offering that is somehow unique.Uniqueness can be achieved through different factors like design or brand image, technology, node dish out or other attractive features. 2. Threat of new entrants * Capital intense and strong brand It is as very capital-intensive industry. Even though it would not be difficult for a new company to obtain the bare-ass materials and the labor needed to produce shoes, there is almost no candidate for them to gain popularity in such a mature industry with some of the strongest brand names in the world. Brand loyalty is extremely strong and it would be very hard for a new entrant to luxate loyal customers from the already existent players. Economies of scales Economies of scale play a abundant role as well and the bigger players have an reinforcement of producing the products at a lower price than compared with newer entrants. As the output is bigger and the wintry be of factories, machinery, marketing and R&D will be change magnitude per unit. Both marketing and R&D constitute high costs and since new entrants will not be able to t ake advantage of the economies of scale they will be less competitive. * High R&D costs It means that its necessary to invest in R&D if they want to compete against others brands.Its a survival head in this market. * Industry in consolidation phase The industry itself is in a consolidation phase and only the big ones will survive. The whopping companies are strategically and constantly acquiring smaller companies. Some of the most popular acquisitions include Reebok by Adidas, Converse by Nike. Small companies are bought before they become a threat to the bigger ones and before they have a chance to gain market share. In other words, it is out(predicate) to grow in this industry because someone will take over your company. . Substitutes * Other types of product from other brands Each company has the same product (shoes, tee-shirts, socks). If the customer is not satisfied with one product, its easy for him to go in another brand and acquire something close to the first purchase. Thats why each company has to be aware of what it sells and what is the customers reaction. * New brand with different strategies As said in the porters analysis, today there is some sport brand which are producing apparels but higher than the best known.For example the brand Quinze of Serge Blanco, famous in the rugby world is producing clothes which are expensive than Nike for example but not with the same quality. This kind of brand products with another savoir-faire and the price are not the same but the customer can be attracting to try it. * Entertainment brand To have fun today and doing something else than workings, the customer has plenty of substitution products. The customer can read and there are many brands, which allow reading. Video games are product to entertain mess (Sony, Nintendo) . Supplier power * Raw materials and cheap resources Typically apparels and shoes are manufactured using major raw materials cotton, rubber, and foam. All of these materials are commo dity goods. In other words, the suppliers do not have the power to plenty the price of their product, since there are numerous suppliers. Hence the supplier power is low. However, there has been some standardization of production in the industry due(p) to growing concerns of labor practices of the suppliers and manufacturers.These practices have been damaging the image of some companies including Nike. Therefore, the big companies prefer to work only with approved manufacturers and suppliers that are known to companion these labor standards. Both Adidas and Nike have created a system to ensure that all the high quality of the product, the working conditions, and the distribution are at high standards. Therefore, suppliers are trying to establish themselves as reliable because once they gain Nike as a customer they know that they will request enormous volumes. However, to reach this level, the supplier needs to make investments in their facilities to improve working conditions an d many suppliers cannot afford to do so. * Cheap labor Many state works for nothing in the eastern countries, in Asia to be precise. Competition against the labor cost is impossible and many company delocalize the production foreign to reduce costs. 5. Buyer power * Everything depends on customers preferences The customer has the choice to buy product in retailing introduce with general brand or he could go to the special store, branding store as Nike store or Adidas store to get a product.Its a question of desire and where the customer lives too. * Price sensitivity issue In the general retailer store, prices are lower than official store. Thats why some customer prefers to go in retailer store and purchase product for lower price and maybe get more compare to the official store. * Growing retailer store More and more retailer store open and sell apparels and shoes from all sportswear brand. The customer has a lot of choice today and can aim whatever he wants and with his own c riteria.