Acquisition of Rossignol by Quiksilver
- Analysis and presentation of the specific profile of the company and establishment of key strategic objectives of the company for international expansion
- The Profile
- Main goals for international expansion
- Choice of selection criteria for countries that are most appropriate for the profile of our business and our strategic objectives.
- The cultural criterion
- The economic criterion
- The geographical criterion
- The legal context
- Application of the criteria chosen to compare the terms offered by the three countries, and choosing the best country for your project.
- The economy
- The geography
- The legal context
- The cultural criterion
- Choosing the best country
- Description of the profile chosen market against our strategic objectives
- The economy
- Legal Factor
- The Culture
- The geography
- Establishing the best market entry strategy
- Future Development Strategy
- Focused on customers
- Looking to the staff
- Oriented techniques and energy
This document studies the acquisition of Rossignol by Quiksilver for several reasons. First, these two companies are working on a sector that affect us directly in order to know the area of recreation and outdoor sports sector, also called as 'outdoor'. Thus this study directly target this market. So it is found to be of particular interest in studying this sector through the study of these two companies and brands they carry.
With a decline of 3 years on the date of purchase of Rossignol by Quiksilver, it is now accepted that the operation was a failure. It was therefore chosen to study the bid, knowing that it was not a success. It seemed just as rewarding to explore an acquisition that did not work, when compared to others that went well. This allows one to ask about the reasons for the failure to understand the process before reaching such a conclusion and thus determine what may be the limits of a merger or acquisition.
After this brief but necessary explanation about the reasons for the choice of subject, now see the scenery amid which the transaction took place. Quiksilver is a US company operating in the midst of outdoor sports. These include sports (mainly water) and urban sports (skateboarding). The brand is thus the benchmark for sport ware. Rossignol, a French company, operates in the field of winter sports: skis, snowboards. Both companies operate in highly competitive markets. Except these few lines of textile companies have never been directly competed against one another.
So with a desire to extend its strategic performance convinced Quiksilver to overtake Rossignol. Quiksilver indeed was not yet on the market of snow. Rossignol's poor market at the time was therefore an opportunity for the US giant to extend its scope to winter sports. On paper, this group seemed like a good deal for one as when compared to that of an another, however many obstacles have stood in front of Quiksilver to carry out the management of its new European business.
An attempt has been made to answer the following question throughout this case: Why the French Company is not successful to advance before the king of American surfing? Initially the study will focus on the takeover itself, stages and the motives of this operation. Then it will examine the reasons that made this operation a failure: how to get there? In the third part it will discuss the different options available to Quiksilver in for best management of the future of the operation.
In 1907, Mr. Abel Rossignol father created in Voiron (Isère) a factorycans and wood products for the textile industry and produced his firstpair of skis in solid wood. In 1911, he founded a branch at its plant for manufacturing of skis, which is distinguished by its competition in several technical and sports scores.
In recent years, the Rossignol Group has strengthened its global supply strategy, all products in the articles of winter sports, provided a strong impetus to new snow and its business and the golfsnowboarding and more recently the development of the textile.
Quiksilver was founded in Torquay in the Australian state of Victoria in 1969 by two surfers Alan Green and John Law. These two founders of the Empire Quicksilver were the first to create a specific garment for surfing: the board short. Soon, the two friends embark on the large-scale manufacturing of their clothing. The prints of Hokusai, a wave with a mountain in the background, is said to be the inspiration for the logo.
Tags: Quicksilver, Rossignol, acquistion of Rossignol by Quicksilver
[...] The redemption proposal was attractive for the boss of Rossignol, Laurent Boix-Vives, who accepted the buyout proposal of Bernard Mariette, President of Quiksilver. The friendly transaction valued ??Rossignol at 236 million Euros, and would be held in the form of a takeover bid. The bid is to redeem all the shares of the target company to the existing shareholders. To do so, the offeror of the OPA proposes a redemption price of securities which is generally higher than the last traded price. The President hoped that this sale of Rossignol would stimulate activity while protecting these workers. [...]
[...] Initially, Rossignol was the world leader of winter holidays (ski, snowboard, associated, clothes Rossignol was the last French company in this sector. On the other hand, Quiksilver is a big American company, the best one on the outdoor textile market. For one decade, because the winter holidays market was in decline, Rossignol's results were very bad. Thus Rossignol decided to let Quiksilver merge. Bernard Mariette, the French CEO of Quiksilver Europe was convinced that buying the French company was a good idea for the American group. Indeed, Quiksilver was absent on the snow sports sector. [...]
[...] This rapid change only affected customer loyalty for Rossignol. This was reinforced by the fact that the new logo looks less modern than the old one, which was more futuristic in its typography. Futurist typography highlights the technological side and innovativeness of the brand. (See illustration) Following the hiring of a team of designers and stylists, Mariette had set a goal to increase sales of textiles by 3 in 4 years, so that this sector accounts for half of sales of the brand. [...]
[...] I decided to act according to my conscience and not according to my interests, I'm tired of this law of money, "said the founder. For the first time, Rossignol got no reward tests in the very famous magazine of reference in winter sports equipment "Ski Magazine" in 2005. This publication was another setback for the brand, which was accustomed to industry recognition. Always a marketing perspective, the latest collection of clothing by Rossignol has not been a success. The French were convinced that the know- how in terms of the American textile would be beneficial for the textile industry of Rossignol. [...]
[...] In 2005, during negotiations, Bernard Mariette promised the French that there would be no layoffs following the purchase. However, a few months later, Quiksilver announced the elimination of 150 positions in its French subsidiaries; two thirds in Rossignol and a third in Dynastar in third. This decision resulted in the permanent closure of the production site in Saint Etienne de Crossey, Isere. Thus this production ski was distributed on other sites in the group, namely Sallanches, Haute-Savoie and Artès Spain. [...]