Case study: The Okaidi brand
- Analysis of Internal strengths and weaknesses of the company
- External diagnosis: opportunities and threats to the environment
- SWOT Analysis of the company Okaïdi
- Application to the company Okaïdi
- Study of Michael Porter's Five Forces
- Application to the company Okaïdi
- The future of the company Okaïdi
In 1996, Camaieu, the group that markets apparel for men women and children, experienced significant financial difficulties. Thus Jean Duforest, co-founder of Camaieu in 1984, decided to partner with Jean-Luc Souflet to acquire the group. This tandem leadership led to the launch of the brand Okaïdi in 2000. These two men, with their complementary skills, shared common human values and economic policies.
Since the launch of the brand, Okaidi has been a market leader. Nevertheless, an economist, or a specialist in the industry who provides market saturation in the short term, sooner or later leads to the phenomenon of concentration. We will conduct an analysis of this company and the environment in which it operates, to identify the capabilities it has and the way forward that it should adopt in order to ensure sustainability.
SWOT analysis focuses on assessing the strengths (Strengths) and weaknesses (Weaknesses) of the enterprise on the one hand, and on identifying opportunities (Opportunities) and threats (threats) present in the environment on the other.
This analysis is known as the LCAG model, and was been proposed for the first time in a book signed by learned professors such as Christensen, Andrews and Guth (Harvard Business School).
The LCAG model confronts the company's competitive environment by evaluating the more or less adaptive skills, and the company's own resources, with respect to the constraints imposed by this environment. There are two types of firms that seem to perform well: those that occupy a small market share and support their strategic position on the construction of an identity that valued by customers, and those who build their strategic position on a large basis, allowing them to benefit from economies of scale and pursuing a policy of aggressive pricing. Cost leadership and differentiation by recoverable research, are the two types of generic strategy.
The strategic choices for Okaidi are differentiation and outsourcing. A differentiation strategy seeks to build the competitive advantage of the company on the specificity of the product it offers. This specificity is recognized and valued by the market, or a sufficient portion of it. This strategy allows Okaidi to avoid direct competition by offering a price which is hardly comparable to that of its rivals.
On the other hand, Okaidi has opted for a strategy of outsourcing its production and transportation through the use of subcontracting, allowing it to "focus on its core business, share risks with their providers, and to be flexible and responsive to a changing market (new model, fashion taste etc). On the financial side, this allows it to reduce costs and increase product quality (competition between providers) and thus free up financial resources to be reallocated for the formation of a competitive advantage.
Tags: Okaidi, competitive advantage, strategic choices, differentiation strategy, economies of scale, sustainability, Camaieu
[...] Moreover, market liberalization is increasing the number of potential suppliers, which is an advantage with respect to the cost of performance, since many suppliers are in competition. Rivalry among direct competitors The rivalry between existing firms takes the form of price competition, advertising battles, introduction of new products, and improved services or guarantees given to customers, all in order to obtain an advantageous position. Several factors influence the rivalry between the companies: The number and relative size of companies: In this study, we see that the number of firms is relatively high, but the financial power between the competitors is unequal. [...]
[...] The study of the competitive forces is a prerequisite for any strategic thinking. It identifies the success factors and the profitability and risk. The study of the competitive forces Porter's diagram for strategic choice and competition B. Application to the company Okaïdi To assess the factors that shape the competitive dynamics in a given field of activity Porter identifies five elements: The threat of new entrants New entrants in an industry bring with them new skills, the desire to gain market share and often substantial resources. [...]
[...] Finance: It is important to note that 73% of the capital of the company is owned by the two leaders. They retain the full power thus ensuring consistency between funding and policy decisions. Human Resources: Okaïdi has established an incentive policy of pay for performance (contribution / reward). Indeed, part of employee compensation is linked to the participation in the result. Moreover, the presence of an employee reinforces his motivation and hence performance, within the company The key success factors Okaïdi occupies a small market share, and supports its strategic position on several key success factors: Original designs of products sold: This factor makes it very popular with customers, thus emerging as a competitive advantage. [...]