Transcript Columbia Sportswear 2003

HEC – Specialised Masters in Project Management
« Best in France » Case Study,
Supervised by Pr. M. Segalla and M. J. Andersen
Competitiveness of France
A case study focusing on Columbia Sportswear
Presentation by:
J. De Montalivet, J. La Brasca, J. Lam, J. Nayrolles, V. Picot, F. Wagner
PRESENTATION OUTLINE
Presentation of Columbia Sportswear
Attractiveness of France
Why Columbia chose France
France and the Future
PRESENTATION OUTLINE
Presentation of Columbia Sportswear
Attractiveness of France
Why Columbia chose France
France and the Future
PRESENTATION OF COLUMBIA
COLUMBIA SPORTSWEAR
…the strategic choice of France…
PRESENTATION OF COLUMBIA
History of Columbia
1938 Lanfrom family flees Nazi Germany for the US and
creates Columbia Hat Company
1970 The firm is in deep debt
1993 Gert Boyle awarded woman of the year prize
2003 Columbia is one of the leaders of the market.
PRESENTATION OF COLUMBIA
Columbia in Europe
Arrival on the market in 1990
Until 1994, logistics for Europe are located in
Holland
In 1994, the European Headquarters are
transferred to Strasbourg
In 2001, decision to locate the European
Distribution Centre in Cambrai
PRESENTATION OF COLUMBIA
COLUMBIA in 2003
Sales: 779 M$
Net Income: 88 M$ (11,5%)
1,636 Employees
3 main locations: Europe, Asia, North America
Global leader in the design, manufacture,
marketing and distribution of active outdoor wear
PRESENTATION OUTLINE
Presentation of Columbia Sportswear
Attractiveness of France
Why Columbia chose France
France and the Future
ATTRACTIVENESS OF FRANCE
1.
France is at the heart of the European market
A market of 380 M people
EU GDP higher than US and Japan
France is the 2d largest market in the EU
2.
First-Rate Infrastructure
5 000 miles of well maintained highway
20% of EU freight from Paris airports
Modern ports and water transportation
ATTRACTIVENESS OF FRANCE
3.
A Magnet for International Investments
Growth of foreign investment
1 year tax exemption for new firms
Paris rated 2d best city for investment
A dynamic financial market
4.
High Quality Workforce
Very high productivity
Moderate wages
Educated, flexible, multicultural
PRESENTATION OUTLINE
Presentation of Columbia Sportswear
Attractiveness of France
Why Columbia chose France
France and the Future
WHY COLUMBIA CHOSE FRANCE
Advantages of France (for Columbia)
Proximity to European markets
Proximity to ports for the reception of goods from
Asia
Availability, flexibility and competence of
work-force
The 35H working week
WHY COLUMBIA CHOSE FRANCE
Disadvantages of France (for Columbia)
Reputation of not being business friendly
Social climate (strikes)
Problems linked to language
WHY COLUMBIA CHOSE FRANCE
The choice of Strasbourg
The Director for Columbia Sportswear in
Europe was French
The best geographical situation between France
and Germany
Competent and trilingual employees
Possibility of finding people from all over the
world
BUT, Strasbourg is badly served by transports
WHY COLUMBIA CHOSE FRANCE
The choice of Cambrai
Strategic location for the main markets:
The Western part of Europe
A logistic key point, with proximity to:
commercial port → reception of goods from Asia
2 highways
close to important airports
The 35h/week: Availability and flexibility of work-force
WHY COLUMBIA CHOSE FRANCE
The choice of Cambrai
Don Dogherty, head of the Cambrai Project:
“Even if you have the best product in the world
at the most attractive prices, it won’t do any
good if you can’t deliver them to your
customers.
Which is what the new site is all about.”
PRESENTATION OUTLINE
Presentation of Columbia Sportswear
Attractiveness of France
Why Columbia chose France
France and the Future
FRANCE AND THE FUTURE
The Focus on logistics
Be ready for tomorrow
Today
Future
Decisive factors of competitiveness for a country
Cost reduction Capacity to react
Procurement quality
Thinness
FRANCE AND THE FUTURE
The Focus on logistics
infrastructure
Level of qualification of the population
Legal system
Social peace
Investment climate
FRANCE AND THE FUTURE
Mega-trends in the world economy
4 trends influencing demand
1. Globalisation of production and economic traffic
2. Transition to post-industrial society
3. Growing environmental sensitivity
4. Immediate reaction to client wishes
3 trends changing offer
1. Deregulation and privatisation
2. Concentration on core competences & shareholder value
3. Re-discovery of structure and process organization
FRANCE AND THE FUTURE
Advantages in France in regards to
the future of logistics
Growth tendencies
Increasing globalisation and dislocation, growing
distances
Higher demand in quality and thus higher profit
for logistic services
FRANCE AND THE FUTURE
Attractive tax system
France will continue to favour foreign
Investments
One of the least restrictive
investments regimes
Role of the DATAR: assistance and
incentives
Reducing tax burdens on
companies
Favouring employment and
entrepreneurship
FRANCE AND THE FUTURE
A service-oriented economy
Importance of the service economy (78% of jobs in the US in 1998)
France’s productivity in services = 60,1%
Adequate workforce
The best quality of life in Europe!
Very important from a managerial point of view!
Recommendations:
Need to launch a compelling communication campaign
Need to act with diplomacy in the political sphere
Thank you for your attention !!!