Emphasis on International Markets The company intends to enhance its brand

Emphasis on international markets the company intends

This preview shows page 15 - 17 out of 20 pages.

demand for its store products and improve its revenue. Emphasis on International Markets The company intends to enhance its brand value and improve its revenue through emphasis on new international markets. In this view, in June 2016, the company opened its first Decathlon store in Mexico. In May 2016, the company opened its first Decathlon store in Malaysia. In April 2016, the company opened its first Decathlon store in Slovenia. In FY2015, the company also opened a pop-up store in South Africa. Such store openings in new markets could benefit the company over a long term and improve its top line performance. Expanding Retail Market in France Decathlon stands to benefit from growing retail market in the France. According to an in-house research report, the retail sales in the country expected to reach EUR484.8 billion in 2020 growing at a CAGR of 2.3% during 2015-2020. The retail sales of value retailers in the country expected to reach EUR15.6 billion in 2020 growing at a CAGR of 2.4% during 2015-2020. Decathlon has taken initiatives to strengthen its presence in the France. In FY2015, the company opened a new Decathlon store in France. The positive economic trend in France provides a good scope for the company to expand its operations in the region by adding new products and expanding its reach through new stores. Threat Changes in Fashion Trends
Image of page 15
Decathlon S.A. SWOT Analysis Decathlon S.A. © MarketLine Page 16 The company’s performance could be impacted by the frequent evolution in the fashion trends. The rate of change in fashion trends has been increasing over the years thereby forcing companies such as Decathlon to constantly update its product offerings with the latest market trends. To adopt the latest fashion trends, customers often shift their loyalties to those brands that offer these trendy merchandises. Inability of the company to change or update its collection, according to the fashion trends and varying customer preferences could negatively affect its brand image. Shortage of Skilled Labor Low availability of skilled professionals could pose challenges to the company. The problem of labor shortage is compounded in the EU as a result of low labor force participation rates, and is expected to become more acute in the future due to ageing of populations. The low availability of skilled professionals may pose challenges to the company. The EU’s labor force is estimated to shrink by 0.2% a year between 2000 and 2030. According to International Center for Peace and Development, it is projected that 110 million people might fall under above 65 years age group by 2030 in Europe, an increase from 71 million in 2000. The old age dependency ratio is estimated to increase from 23% in 2000 to 35% in 2025 and 45% - 50% in 2050. The company operates a network of stores across Europe and employs over 70,000 people. Labor shortage of skilled labor could therefore impact its stability and operational efficiency.
Image of page 16
Image of page 17

You've reached the end of your free preview.

Want to read all 20 pages?

  • Fall '20
  • Brand, Private label, Sports equipment

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors