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Exercise 6

Porsche is making strategic choices to transition to 50% electric vehicle production by 2025, including the fully electric Taycan and future electric Macan SUV. This growth involves developing new electric models to compete with Tesla's market dominance. Beauty Success Group grew its revenue to 300 million euros through opening new stores, developing own beauty brands, and partnering with other mid-sized companies. It opened 39 new stores in 2018 and aims to open 40 more in 2019 through various concepts. Ladurée, known for macarons and tea rooms, is expanding into beauty products through its Les Merveilleuses makeup line. It aims to sell these products through Sephora and extend its brand beyond food into

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Quang Anh Lê
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17 views

Exercise 6

Porsche is making strategic choices to transition to 50% electric vehicle production by 2025, including the fully electric Taycan and future electric Macan SUV. This growth involves developing new electric models to compete with Tesla's market dominance. Beauty Success Group grew its revenue to 300 million euros through opening new stores, developing own beauty brands, and partnering with other mid-sized companies. It opened 39 new stores in 2018 and aims to open 40 more in 2019 through various concepts. Ladurée, known for macarons and tea rooms, is expanding into beauty products through its Les Merveilleuses makeup line. It aims to sell these products through Sephora and extend its brand beyond food into

Uploaded by

Quang Anh Lê
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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STRATEGIC CHOICES – CASE STUDY

Questions:

In each situation, determine:

1. The strategic choices that have been made. Justify your answer.
2. The type of growth that have been used. Justify your answer.

Situation 1 - Automotive: Porsche will bet big on the electric car

"The future is electric," said Porsche North America boss Klaus Zellmer. "By 2025, we will
have passed a tipping point and Porsche will build more than 50% of its annual volume with
an electrical outlet, in one form or another, whether it's plug-in hybrid technology or fully
battery-powered," Zellmer said during a presentation at the Los Angeles Auto Show. "Our
commitment is huge, even if of course the combustion engine is not dead, when you take
for example sports cars like the 911," he said.

The prestigious German manufacturer, a subsidiary of the Volkswagen group, unveiled in


September in Frankfurt its new Taycan, the brand's first 100% electric sports car, capable
of going from 0 to 100 km/h in less than three seconds. This luxury model is presented as an
anti-Tesla weapon, which dominates the global electric car market, especially in the United
States, which is Porsche's second largest market (more than 57,000 vehicles sold in 2018).

From 2021, Porsche wants to release a 100% electric version of its famous Macan SUV, a
model that would again directly compete with the Model Y of its rival Tesla. "The (electric)
Macan is going to position itself in many different segments and attract a lot of people from
different segments," as Tesla did when it came to market, Zellmer predicted.

"We are starting a transition, it will not revolutionize the world in five years, but (...) the
tipping point will be in 2025," said the CEO of Porsche in North America. As for China,
Porsche's first domestic market where it is again facing growing competition from Tesla,
which has just opened a giant factory there, Zellmer believes that the main obstacle to the
electric vehicle market is currently the limited charging possibilities.
"If you take these megacities of 20 million people where people live in tall buildings, the
challenge is to be able to charge your car, and according to our statistics 90% of the
charging time is done at home or at work," he said.

Situation 2 – Beauty success Group

In 2018, Beauty Success Group is a group with a turnover of 300 million euros, 540 points
of sale, 250 franchise partners. In a French beauty market that has been declining for
several years, this is a good result.

Support from own brands – "Sales at our perfumeries are declining in the same way as the
market, but they are doing well thanks to their institutes." Our exclusive own brands are real
growth drivers and we are developing them, especially in institutes.

Opening of perfumeries - Despite a gloomy context, Beauty Success still opened 11


perfumeries in 2018. Seven in metropolitan France, one in Guadeloupe, one in Reunion
Island and two in Morocco. But it is the Esthetic Center network, bought by the group in
2016, which made the most openings last year (24 institutes). Beauty Success was also
responsible for developing the Tanguy Parapharmacie franchise network and supported
three new openings. Finally, the group has imagined a new perfumery concept named
Nicole. In total, Beauty Success Group opened 39 stores. "For 2019, the goal is to open 40
more." At the end of 2018, Tanguy Parapharmacie was acquired by Parashop. It is now with
Parashop that Beauty Success has established a partnership to develop the franchise
network. "Parashop belongs to the Thalgo group, a family business with similar size and
values to ours," says Philippe Georges. I strongly believe in this type of partnership between
mid-caps (mid-sized companies). With Beauty Success, Esthetic Center and Parashop, we
bring a global beauty offer. In addition to its three flagship brands, Beauty Success
continues to test new concepts. Thus, at the end of May, a second Beauty Sisters store, for
millennials, will be inaugurated in Périgueux (southern France). A second point of sale
stamped Nicole will be opened in Rennes (western France) at the end of the year.
Situation 3 – Confectioner Ladurée tackles beauty –

Ladurée, the brand that brought the macaron back into fashion, sets no limits to its
development projects. Without complex, she goes from chocolate to... lipstick. Present in
twenty countries with about forty shops and tea rooms, the "manufacturer of sweets"
expects to achieve 125 million in turnover this year excluding licenses. Not content with
exporting his candy boxes to the big capitals, Ladurée set no limits to his thirst for conquest.
After the opening last Christmas of its first 100% chocolate Parisian boutique, Les Marquis
de Ladurée, which is of course destined to spread abroad, the brand is negotiating its entry
into... Sephora.

The “Les Merveilleuses” make-up and skincare line, already launched in Japan where it is
manufactured by the Albion group, is ready to compete with Chanel and Dior on the
European market. "In my eyes, Ladurée has never been a pastry house, but a brand
representative of the French art of living," explains its president, David Holder. The son of
the founder of Boulangeries Paul was lulled by the scent of his grandparents' pastry and
was even apprenticed to his father. But it was at Dauphine and Berkeley that he learned
management and finance. A look back at two decades of sweet passion. Women as a
source of inspiration: It was Jeanne, the wife of pastry chef Ernest Ladurée, who had the
idea of a tea room, frequented by ladies who would never have passed the door of a café.
This feminine inspiration is the common thread of the in-house creations. Before tackling
makeup, Ladurée had launched as in fashion, the idea of pastry collections. In addition to
the ten "permanent" flavors of macaroons, about twenty different flavors come out each
year. As for derivatives, everything is also done to seduce women: from scented candles to
silk scarves, through stationery and romantic printed "shopping bags"... The objective is the
same: "To extend the necessarily ephemeral taste experience by an object to use at home
or to offer," explains David Holder.

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