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Analysis of Boffi’s international strategy

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Since its creation in 1934 Boffi became the Rolls-Royce of the kitchen and bathroom industry. Nowadays this is no more than 223 retailers in Italy and 115 retailers internationally outside Italy with three production areas (kitchen, bathroom and system). Thanks to its combination between modern production processes and artisan tradition, Boffi stand out the market and is known for its specific design and refine products. As a lot of firms Boffi needs to keep innovation at the heart of its strategy, that’s why a lot of designers are working for the firm.

But even with a lot of innovation and creativity, its environment is changing really fast, that’s why they are confronted to a multiple issues and they need to be as reactive as possible. Created in 1934 by Piero Boffi, this Italian SME has done such a good road since its beginning, initially build in the district of Brianza, known for its Italian furniture’s producers, the company has been built in 1947, Piero’s sons (Dino, Pier Ugo and Paolo) were specialised in innovation, technology and design on products, the first production of modular cabinets for kitchen started one year later.

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The willingness of Dino was to work with designers to create added value, that’s why it’s not a surprised that today a lot of designers worked for Boffi.

In the sixties Boffi hired Luigi Massoni, a famous Italian designer, as art director, his ambitions for Boffi were high, he wanted to do massive production and product standardisation. But ten years later Boffi used wood as core material and abandon the idea of Massoni which would have been using industrial materials. In the nineties, Roberto Gavazzi became business partner, in order to pass on his international experience in consulting and MNE’s. In the same years kitchens became trendy and an open place which was part of the house, customers’ needs weren’t the same, they had change, so Boffi’s adaptation to the market had to change too. At the end of the nineties, the firm diversified in the bathroom industry, in 1997 the “I fiumi” and “Minimal” bathrooms respectively designed by Claudio Silvestrin and Giulio Gianturco were successfully welcomed in the bathroom luxury market. The particularities of Boffi’s bathrooms were that the whole products and furniture’s were set up by the firm. Nowadays Boffi is present in a lot of countries and growth a little bit every year.

Page 1

II) Boffi’s strategy
Boffi is a company in the Luxury market field, his main goal was to differentiate itself from the competitors, then their focus their strategy in high quality product and high prices, this strategy has too many advantage and also disadvantage for example, touching a particular kind of customer. Boffi has four main strategies in its activity.

Product design: Products are made from famous designers who are known in the art domain, it allows making each product unique. Those products are in the influence of an art director who is a designer as well, tree of them are famous.

Alliance: Boffi has alliance with high end brand. This partnership enhances its activity, and makes the brand some visibility in the international markets. In 2001 Boffi becomes a member of Foundazione Altagamma, an association of luxury Italian design companies who enjoy an International reputation. The main aim of the association is to promote Italian brands, style, culture worldwide.

2003 Boffi made the acquisition of Nobert Wangen, a top quality kitchen brand (design kitchen and bathroom). Naoto Fukasawa collaborates as well with Boffi. Diversification: in the 1980 Boffi decided to produce and make bathroom because of the needs of customers. Bathrooms are considered has a private space having and taking more and more space in our modern society. Bathroom sector has low entry barriers because of less money spending, and it’s almost the same area (living place) as the core activity of the company which is kitchen. Kitchen sales represent in 2008 (72%) bathroom (27%) and systems (1%). Internationalisation and distribution: They are many reason for Boffi to expand, their main strategic drives are to:

– Seek opportunities for growth through market diversification (part 3: diversification). Boffi enters the bathroom sector with the impulsion of Antonio Citterio (Art director) a synthesis between storage and high tech.

Earn higher margins and profits; comparing to the product they are making, goods are extremely expensive. (Price for a kitchen, first price: 15 000 E, average prices: 50 000 E).

Gain new ideas about product, in Japan they had to change their raw material (wood/eco-wood) production. It was very difficult there because of the country’s law. Afterwards they take the substitution material as theirs main material thank to its qualities.

Boffi’s distribution is quite selective, the firm got few own stores (20) but also indirect stores, retailers in Italy and internationally as well.

Page 2

III) Micro Environment

Boffi set up a specific strategy in order to differentiate itself from the other competitors, its core activity is composed of three areas (kitchen, bathroom and systems in 2008). The thing is that in Italy, especially in the kitchen industry, they were 908 SME’s in 2008, the region of Lombardia where Boffi is located count a lot of artisans and industrials producers, so the firm has to deals with all those competitors and even make it strength. In the market luxury, Boffi is known for its knowledge in kitchen designing, and it is important to know what differentiate Boffi from competitors and what create their added value.

1)

Porter’s five forces

In order to analyse Boffi’s internal environment, we used the five competitive forces of Michael Porter. The five forces are: the bargaining power of buyers/suppliers, the threat of new entrants, the threat of substitute products or services and the rivalry existing between competitors already present on the market.

First of all, we decided to make an analysis of porter’s five forces in Italy, Boffi’s home country, because if we know its environment we can easily identify what create value. So we can begin with the bargaining power of buyers, which seems really low, because Boffi’s customers don’t have the choice when it comes to talk about adaptation, for example kitchen are the same all around the world, if the client wants a Boffi kitchen or even Bathroom, he will have the exactly the same model than another one. The only adaptations made by the firm are about legislation issues. Moreover, the average price of a kitchen is almost 50 000€ and negotiation isn’t possible (cost estimations). Then we can talk about the bargaining power of suppliers, which is also pretty low, because there are some agreements made with suppliers so they can’t negotiate that much, moreover there is a lot of possible suppliers in Italy, which means that if a supplier disagree, Boffi could find another one pretty easily. What about the new entrants now? As suppliers and buyers, the threat is very low, because there are so many SME’s in the sector of kitchens for example (908) which means that it is quite impossible for a company to stand out from competitors. The rivalry between competitors is quite high in Italy; we can identify three kinds of competitors (design-based companies, brand and production based companies and price-based companies). Boffi belongs to the design-based companies, and its main rivals in Italy are Arc Linea, Dada, Varenna, Schiffini and Valarcine. Finally the threat of substitution products is low, because Boffi belongs to the kitchen luxury industry and substitution is quite impossible in the areas of kitchen and bathroom. After this analysis of competitive forces in Italy, we chose to analyse the French market, because France was the first foreign country where Boffi expand its activity, France is known for its great gastronomy, that’s why Boffi’s first shop opened there. But this also means that the rivalry between competitors is one of the most important for Boffi. So we wanted to see if this is still an important place for Boffi and what threats are present there. First of all the rivalry between competitors is really high in France, maybe more than anywhere, as in Italy, there is a lot of competitors according to financial means, we can quote Bulthaup, Comprex, Cuisines SaintAndré, Effeti, Hardy Inside and so much more in the luxury field. That’s why the bargaining power of buyers could seems higher than in Italy, because French clients are really chauvinistic and the trend of the last years is to buy French brands, so sellers might adapt their strategy and maybe let the client negotiate a bit more than anywhere else, if Boffi wants to stay in front of competitors. Concerning the bargaining power of suppliers it’s quite the same than in Italy, the threat is pretty low because most of the suppliers are coming from Italy. Substitution of products and new entrants also are similar than Italy because the French market is saturated, which is ad hoc for a gastronomic country, and there isn’t any substation, because kitchen and bathrooms are basic goods.

The French market represent 7% of Boffi’s consolidate turnover, which is not that much because it was the first country where Boffi expands, so they need to stay innovative and persuasive if they still want a place there.

Finally, we analysed those same five forces in Asia, more specifically in Japan, where the kitchen market was a failure for Boffi the first time they try. The firm is located in no more than 14 countries in Asia, which means that we can find Boffi’s products all around Asia, but with no more than one store for 13 countries. Japanese kitchen market is constitute of a lot of Japanese and foreign brands. Customers are focus on quality and customers services, that’s why the bargaining power of buyers is pretty high in Japan, because they got high expectations for their kitchen and bathrooms, especially in the relationship between seller and buyer. Concerning the new entrants, the conclusion is quite the same than in France and Italy, the market is saturated, because there is a lot of Japanese brands, if we add foreign brands this isn’t a field where you can start your activity. So the rivalry between competitors is High, as important than in France and maybe more, because brand like Inax, Takara standard, Sunwave and National propose a lot of kitchen products, as well low prices as high-end brands, but for the luxury market, there isn’t that much of national competitors, quite the opposite high-end market belongs to foreign brands with innovative design. The bargaining power of suppliers doesn’t differ from Italy, because suppliers are the same (mostly Italian) and the threat of substitute products isn’t a high too because the products and services done are unique.

2)

Porter’s value chain

After this Porter’s analysis, we decided to use another famous framework of him, the porter’s value chain. The value chain categorizes the generic value-adding activities of an organization, we can differentiate support activities from primary activity Here’s the value chain of Boffi:

Support activities:
Firm infrastructure: There is only one production factory, which is located in Brianza, conception and realization too.
Human resource management: Boffy employees are more than 300, with specific training for sellers.

Page 4

Technology: Investment in R&D is important in order to be creative and innovative, sophisticated IT System (softwares).
Procurement: Most of the suppliers are local suppliers in the region and in Italy, near to the factory of Lentate sul Seveso. Moreover there is some partnership with suppliers which guarantee the involvement of each parts.

Primary activities:

Inbound logistics: There is a small network of suppliers which provide the best raw materials. There isn’t much of storage cost because of just in time production. Operations: Boffi combine modern production and artisan tradition Outbound logistics: Boffi owns mono-brand stores, indirect stores and its distribution is quite selective because their kitchens and bathrooms aren’t sold in every shops, there is the stores that Boffi bought and the stores owns by independent which sell Boffi’s products. Marketing & sales: There are a reserved numbers of specific ads, in a very selective events like fairs or art events, where the product is not entirely presented, in order to create a need for customers.

Services: Customers are advised by qualitative sellers, because they know how to share their passion of the product. The products sold could be fixing in case of problem (for example, the raw material called corian is easily fixable).

3) SWOT, TWOX
What is SWOT? This is “a study done by an organization in order to find its strengths and weaknesses, and what problems or opportunities it should deal with. SWOT is formed from the initial letters of ‘strengths’, ‘weaknesses’, ‘opportunities’ and ‘threats’.” http://oald8.oxfordlearnersdictionaries.com/dictionary/swot-analysis It is the tool with we can elaborate the strategy of a company. More we can understand what competitors do and can give “the insights you need to craft a coherent and successful competitive position […] and takes best advantage of abilities and opportunities of the company.” http://www.mindtools.com/pages/article/newTMC_05.htm

Boffi’s SWOT
Strengths :
High quality of raw materials
Sustainability concern  ISO certification
14001; 9001
Innovation, creativity and excellence as motto
One of the leader of the international market

Weaknesses:
Rate
Many kitchen competitors (designed-based companies, brand and production-based companies, price-based companies) Small numbers of retailers that were able to handle a product positioned in the high-end of the market in some countries  find the same passion, capabilities and technical

Page 5

Collaboration with international and wellknown designers who know better the local needs and wait understanding
No structured planning international settlement strategy

Partnership with complementary brands (short period before “real settlement”)
No adaptation to the different countries 
Diversification (kitchen, bathroom  wellness same strategy, same production but different trend) => niche cultures
Low level of competition in bathroom field.

Many local artisans as competitors

Low entry barriers and proximity of the core business of the company and step towards the final goal (entire living solutions)
Add furnitures (light and wardrobe)

Internationalisation and distribution (acquisition luxury niche brands or develop third product category)
Open mono brand stores  direct control of client relationship
Custom made
Difficult to be imitated / immediately
recognizable Training (Milan, London, NY, Amsterdam, Paris  training centres)
Research for the perfect location before the opening Opportunities :

Threats :

Niche opportunity ( cross selling => entire
living solution)

German competitors
Belgium  strong local production and taste
more conservative.

Investment R&D, communication
Export sales = 65% of total turnover (in 2008)

Great Britain  strict regulation for bathroom
Denmark Japan settlement  strict local
legislation and many cultural differences

Application of some retailers for exclusivity
Waiting time sometimes too long because of

Page 6

Hotel

the distance

Sweden  no competition

US  lack of specialized counterpart and
strong technical regulation

Introduce direct management of all countries
United Arab Emirates

Sweden  no knowledge and understanding
of Made in Italy
Very selective Communication

TWOX analysis:
This analysis combines the four SWOT elements to determine a better strategy. TWOX analysis uses strengths and weaknesses to take advantage of opportunities and both of them to reduce threats and to minimize weaknesses or avoid threats.

Opportunities:
Threats:
1. Niche market
2. Introduce direct
management every where
3. High investment in R&D
4. Hotel partnerships

1. Special regulations in many
countries
2. Long waiting time
3. No knowledge and
understanding of “Made in
Italy” in some countries

Strengths:
1. Diversification toward
entire living solution
2. Mono-brands for better
control
3. Training centres
4. Complementary brands
partnership
5. Collaboration with
international and wellknown designers and
architects

Diversification
(kitchen/bathroom) could be
more develop and create a crossselling with an entire living solution  take an advantage of
niche markets. (S1 & O1)

The partnership with
complementary brands even for a
short period could be reduce the
waiting time for long distance
command.(S4 & T2)

Introduce direct management
through mono-brands stores
which allow a direct control of
client relationships. (S2 & O2)

Collaboration with international and
well-known designers and architects
could reduce risks concerning local
legislation and differences of
cultures. (S5 & T1)
Training centres could improve the
knowledge and understanding about
the “Made of Italy”, which is the
core of Boffi’s strategy. (S3 & O3)

Page 7

Weaknesses:
1. Many competitors
2. No structured planning
for settlement strategy
3. Italian production plants
only
4. Very selective
communication

IV)

Boffi might develop their
partnership with hotels to
elaborate a structured planning
for international settlement
strategy. (W2 & 04)

Boffi has to manage its unique
Italian production to reduce the
waiting of distant customers. (W3 &
T2)

The high level of R&D
investment could depose most of
competitors (maybe Germans)
(W1 & O3)

Boffi might improve its
communication about their work to
develop knowledge and
understanding of “Made in Italy” to
other countries (such as Sweden for
example) (W4 & T3)

Macro environment

The macro-environment of BOFFI will depend of where products of the company will be sold. The PESTEL analysis will permit to define the extern environment of the firm. This tool is also necessary to analyse the Boffi’s strategy in some countries. For example, 3 PESTEL analysis will be necessary to study the market in France, Italy and Japan.

PESTEL ITALY
Political

Economy
Socio-cultural

Technological

Environmental

Financial debt of 105.7% for the Italian state
because of the corruption practiced by the
most high rank of the state
Economic crisis in Italy had provoked an
increase of prices of 3.3% in Italy.
Boffi know its home-market and can make
benefit in Italy. However, Italians are in the
obligation to limit their consumption because
of this crisis in 2008. During this year, the
variation of the consumption was of -0.8%.
Italian furniture makers are specialized in the
Design of kitchen. Boffi is ready to make in
place a lot of innovation to stand out their
Italian competitors
Italy has a late compared to other European
countries in term of sustainable
development.
This late is explained by the less of
communication set up by the government.
Therefore, citizens and companies are not

Page 8

Legal

used to respect sustainable development
rules to protect the environment. However,
Boffi is ready to set up measures for the
sustainable development
The Value Added Tax was of 15% in 1980
and of 19% in 2008 to reduce the public
debt.

PESTEL FRANCE
Political

Economy

Socio-cultural

Technological

Environmental

Legal

France knows currently a better politic stability than Italy, which is the home market of Boffi. However, the French government has some main goals to
reduce the debt of the country, which was of 14.6 million of euros during the crisis of 2008.

The French economy had a lot of difficulties to restart because of this crisis. Since these last years, the economy is in stagnancy because of the reduction of the consumption on the French market. The French people are interest by the Italian design.

However, the financial debt in France is at the origin of the decrease of the French’s level life. They must cope with the increase of prices which was of 9.8% between 2007 and 2008.
Therefore, Boffi can encounter a lot of difficulties on the French market to attract customers.
French customers are attracted by the furniture market. But the reduction of their consumption of 0.8% has provoked the increase of the turnover of furniture companies. There are constraints to sell products on lower-end and make promotions on a lot of them.

French people are seriously implicated in the sustainable
development. For an example, they are ready to recycle and to reduce their electricity or water consumption. This implication is the result of communication campaigns set up by the French
government. Because of rules that a lot of companies have to take, Boffi is setting up measures to contribute to the sustainable development.
To restart the French economy, the government has voted rules on new taxes. For example, a new measure was set up to increase the tax rate of the insurance-life. The tax which was of 11% in 2008 has been of 12.1% the next year

Page 9

PESTEL JAPAN
Politic

Economy

Social

Technological

Environmental

Legal

Japan is one of the few Asian countries to know a politic
stability. Japan is a constitutional monarchy, however, the
increase of the nationalism can give a bad image to the
country and a lot of difficulties for foreign companies as
Boffi.
Japan is one of the best export countries of the world with
5.38% of global exportation rate. But exportations have
decrease since the crisis of 2008.
In Asian countries as Japan, the culture is more different than European country (Several religions, language different,
habits values and attitudes)
For the Japanese market, Boffi must adapt their products to
their trends, to the culture and review the legislation.
Japan is known for its production of high-tech products as
cell phones, robots or cars which are exported in foreign
countries. Boffi should adapt their kitchens to the
development of Japanese technology.
Japan had set up a lot of ecological measures to contribute to the respect of the environment. Therefore, Boffi must adapt
their products thanks to ecological systems the increase of
pollution in 1950s.
The Japanese government had voted strict laws to forbid the
sales of some kinds of wood which are forbidden.

The PESTEL analysis means that thanks to the innovative skills of Boffi, Italian and French customers should be attracted by their products. The
implication of the firm in the sustainable development can also interest customers.

However, because of the Japanese restrictions and the increase of taxes in Italy and France, the development of the Boffi’s activity was difficult in 2008. The reduction of the spending power had provoked the decrease of sales.

Page 10

V) Conclusion/Recommendations
Boffi’s life began with handicraft, with the worldwide internationalisation’s pressure they had to go abroad if they wanted to get bigger. However, they wanted to keep their core of craft experiences and started to combine it with designers and architects. So they mix modern production and kept artisan tradition. They manage to promote the “Made in Italy” in all the countries they set up. We saw throughout the study that they want to impose the Italian culture all over the world without any modification. That is the reason they failed in some country as in Japan for example because of the strict legislation and differences of culture. Nevertheless, they adapt a little their raw material (wood used for eco-wood) and they succeed by changing this constraint into opportunity because they decided to apply this new kind of wood to all their products.

As the Boffi’s CEO Roberto Gavazzi said the adaptation is unnecessary and counterproductive:” we never adapt product design to different countries. Our offer in terms of lines, colours, materials is the same all over the world.“ So, we can understand that they have a home replication strategy. It is justify with the academic definition: “Home replication strategy is the international replication of home based competencies such as production scales, distribution and brand power. The company centralizes product development functions in its home country. After product differentiations are finished in home country, innovations will be transferred to apply in local market in order to capture and extend additional value.” (http://fr.scribd.com/doc/106649550/Home-Replication-Strategy) They want to stay in the luxury market and develop all their strategy around this goal
with high investments in R & D to be the more innovative, search of perfect location to catch customers. Matteo Crippa assures that “it takes other companies two years to follow what we do, and by that time we’ve come out with something new.” Nonetheless, they want to keep all the production in Italy but it could represent a problem if they want to set up in a more distant country. Indeed, they don’t have a structured planning for its internationalisation’s strategy. They only focus on taste, trends, and cultures similar as the Italian’s. Maybe to solve the constraints they can meet, it could be interesting for Boffi to open a second plant of production to respond faster to the distant demands (as America or Australia).We could propose to Boffi to look after the United Arab Emirates (UAE) market. Indeed, this region is a developing area. Moreover, UAE has a great potential in term of new consumer, and could easily target a wide range of wealthy person. It could be a land of opportunities. Actually, the economy of the country is quite good especially with the financial impact thanks to oil on the region. People over there discovered not far ago the value of money and what we can do with. Since, they want to be the best in term of innovation and extravagance. Furthermore, there aren’t many competitors.

The cultural aspect is not an issue because even if UAE has an oriental culture, people trends to westernization. So, Boffi could take the advantage of it and could be accepted easily. In that way, Boffi could improve the number of partnership with hotels which are an active and developing sector of activities. Many owners want to have the best of the best and are ready to pay. So, kitchens and bathrooms of Boffi could be improved as well as their exports too.

Page 11

References
Macro environment
http://www.actinnovation.com/innobox/outils-innovation/analyse-pestel http://www.insee.fr/fr/themes/tableau.asp?reg_id=98&ref_id=CMPTEF08336 http://economicresearch.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=21939
http://data.lesechos.fr/pays-indicateur/italie/consommation-des-menages.html http://data.lesechos.fr/pays-indicateur/italie/taux-de-la-tva-applique.html http://www.lexpress.fr/actualites/1/economie/italie-l-inflation-au-plus-haut-depuis2008_1071702.html

http://www.boffi.com/EN/FlagshipStoresAndBoffiStudio.aspx

Micro environment
http://fr.slideshare.net/JapanRetailNews/kitchen-market-japan-2009 http://www.cotemaison.fr/chaine-d/deco-design/boffi-cuisine-boffi-ce-qu-il-faut-savoir-surboffi_12669.html http://www.boffi.com/EN/Dealers/asia/china.aspx

http://www.livemint.com/Industry/RtVTQn3LvsAw3IryI3qJ6J/Roberto-Gavazzi%E2%80%93The-basicBoffi-language-will-remain-in-In.html http://www.cotemaison.fr/cuisine/cuisiniste-le-nouveau-top-30-des-meilleurs-cuisinistes_3364.html http://designmafed.wordpress.com/2013/04/21/a-visit-to-the-boffi-showroom/ http://cuisinelove.com/lacuisineequipee/index.html

But also: Presentation given by Coventry

Page 12

Powerpoint Presentation
Slide 1

International
Marketing
Strategy 301
Dhoiffir Nayir:
Loic Goossens:
Margot Carreres:
Régis Akpokli:

5405417
5395163
5395071
5405392

Tutor’s name : Lilian Dorlencourt

Slide 2

Table of contents
I. Who is Boffy?
II. What is Boffi’s Strategy?
III. Environmental audit
A) Micro environment
B) Macro environment (Success/failure)

IV. TWOX analysis
V. Conclusion / proposition

Slide 3

I- Who is Boffi?

 Created in 1934 by Pierro Boffi
 3 production Areas (kitchen,
bathroom, system)
 20 direct stores
 50 indirect stores
 223 retailers in Italy
 115 International
 70.768.000 dollars in 2008

Key numbers according to Boffi’s history

Slide 4

II- What is Boffi’s Strategy?

 Product design

 Alliances
 Diversification
 Internalisation and distribution

Boffi is a company in the Luxury market field, his main goal was to differentiate itself from the competitors, then their focus their strategy in high quality product and high prices, this strategy has too many advantage and also disadvantage for example, touching a particular kind of customer. Boffi has four main strategies in its activity which will be explained in the 4 following slides.

Slide 5

II- What is Boffi’s Strategy?
Product design
Alliances

Diversification

Internalisation and
distribution

 The product were the result of the collaboration with
international and well-known designers
 An Art director coordinated the work of all the
designers.

Slide 6

II- What is Boffi’s Strategy?
Product design
o partnership with complementary brands in the high end
Alliances

Diversification

Internalisation and
distribution

o Aim a International Market
o Living concept

Slide 7

II- What is Boffi’s Strategy?

Alliances

 In the 1990 Boffi decided to
enter in a new field, the
bathroom, under the same
brand

Diversification

 Bathroom  strategic
business area

Product design

 In 2008 Boffi’s product
Internalisation and offer was composed by
distribution
Kitchens(72%), bathrooms
(27%) and systems (1%)

Slide 8

II- What is Boffi’s Strategy?
Product design
Alliances

Diversification

Internalisation and
distribution

 Boffi wants to develop a retail structure of monobrand stores to carry Boffi style and philosophy around the world
 Boffi’s distribution is based on direct Boffi stores,
indirect mono-brand Boffi stores, retailers in Italy and
internationally

Slide 9

III- Environment Audit
A) Micro environment

 Porter’s five forces

 Porter’s value chain

Slide 10

III- Environment Audit
A) Micro environment
Porter’s five forces

Bargaining power of buyers: LOW
– Average price of a kitchen (50 000€)
– Same products all around the world
– Few specific adaptation
Bargaining power of suppliers: LOW, MEDIUM
– Agreements with suppliers
– Italian suppliers are multiple

Porter’s value chain

New entrants: LOW
– Market is saturated
– Cost too important( R&D)

In order to analyse Boffi’s internal environment, we used the five competitive forces of Michael Porter. The five forces are: the bargaining power of buyers/suppliers, the threat of new entrants, the threat of substitute products or services and the rivalry existing between competitors already present on the market.

These 2 slides represents the Boffi ‘s situation in Japan.

Slide 11

III- Environment Audit
A) Micro environment
Porter’s five forces

Rivalry between competitors: HIGH
– Japanese brands (Inax, Takara standard, Sunwave)
– Foreign designed brands

Threat of substitution products: LOW
– In luxury substitution is quite impossible

Porter’s value chain

Slide 12

III- Environment Audit
A) Micro environment
Porter’s five forces

Porter’s value chain

The value chain categorizes the generic value-adding activities of an organization, we can differentiate support activities from primary activity

Slide 13

III- Environment Audit
A) Micro environment
Porter’s five forces

Firm infrastructure:
– Conception, production and realisation in Brianza, Italy
– Shops in 3 continents
Human resources management:
– More than 300 employees
– Specific training

Porter’s value chain

Slide 14

III- Environment Audit
A) Micro environment
Porter’s five forces

Technological development:
– Investment in R&D Creative & innovative
– Sophisticated software

Procurement:
– Local suppliers
– Partnerships

Porter’s value chain

Slide 15

III- Environment Audit
A) Micro environment
Porter’s five forces

Inbound logistics:
– Small network of suppliers Raw materials of quality
– Low storage cost Just in time production
Operations:
– Mix of modern production/artisan traditions

Porter’s value chain

Outbound logistics:
– Mono-brand stores, indirect stores
– Selective distribution

Slide 16

III- Environment Audit
A) Micro environment
Porter’s five forces

Marketing & sales:
– Reserved numbers of ads
– Specific events (fairs, art)
Services:
– Qualitative sellers
– Customers after sales service

Porter’s value chain

Slide 17

III- Environment Audit
B) Macro-environment
 PESTEL Analysis in:

-Italy
-France
-Japan

 Advantages for Boffi

 Drawbacks for Boffi

Slide 18

III- Environment Audit
B) Macro-environment

Advantages for Boffi

POLITIC

*Politic Stability in countries of commercialisation
*Increase of nationalism in Japan

ECONOMY

PESTEL analysis

*Economic crisis in these countries because of their debt

SOCIO-CULTURAL *Consumption limited by population because of crisis in these countries
*Difference of culture in Japan

TECHNOLOGICAL *Development of innovation in these countries

ENVIRONMENTAL *Campaign of communication by governments for the sustainable development

Drawbacks for Boffi
LEGAL

*Increase of taxes rate in Italia and France
*Strict laws to protect the local industry of Japan

The macro-environment of BOFFI will depend of where products of the company will be sold. The PESTEL analysis will permit to define the extern environment of the firm. This tool is also necessary to analyse the Boffi’s strategy in some countries. We combined the analysis of 3 countries: France, Italy and Japan.

Slide 19

III- Environment Audit
B) Macro-environment
PESTEL analysis
 Customers attracted by innovative products of Boffi in
Italia and France
Advantages for Boffi
 People in favour of ecological systems of Boffi

Drawbacks for Boffi

 Sales should increase thanks to the return of the
economic stability

Slide 20

III- Environment Audit
B) Macro-environment
PESTEL analysis
ˣ Difficulties of adaptation on the Japanese market
Advantages for Boffi

ˣ Decrease of sales because of the reduced consumption

ˣ Legislations brake the activity of Boffi
Drawbacks for Boffi

Slide 21

 IV- TWOX analysis

Slide22

Opportunities
1. Niche market
2. Introduce direct management worldwide
3. High investment in R&D
4. Hotel partnerships

Threats
1. Special regulation in many countries
2. Long waiting time
3. No knowledge and understanding of « Made in Italy » in
some countries

IV- TWOX Analysis

Strengths
1. Diversification toward
entire living solution
2. Mono-brands for better
control
3. Training centres
4. Collaboration with foreign
and well-known designers
and architects
5. Complementary brands
partnership

Diversifivation towards creation of entire living New alliances with complementary brands  reduce the waiting time. (S5 & T2)
solution  advantage of niche markets. (S1 & O1)

Weaknesses

Well handle with its unique plant of production 
Hotel partnership elaboration of a structured reduction of the waiting time for distant customers. ( W3 & T2)
planning of settlement (W2 & O4)

Direct management through mono-brands stores  Collaboration with foreign designers and architects  better control of client relationships. (S2 & O2)
reduce local legislations issues and analyse easier the
differents cultures. (S4 & T1)
Trainning centres  improve knowledge and
understanding of « Made in Italy ». (S3 & O3)

1. Many competitors
2. No structured planning for
settlement strategy
High R & D investments  competitors supplanting. Improve the communication  develop knowledge and understanding of « Made in Italy ». (W4 & T3)
3. Italian production plants (German?!) (W1 & O3)
only
4.Very
selective
communication

The SWOT is the tool with we can elaborate the strategy of a company. More we can understand what competitors do and can give “the insights you need to craft a coherent and successful competitive position […] and takes best advantage of abilities and opportunities of the company.” http://www.mindtools.com/pages/article/newTMC_05.htm

This analysis combines the four SWOT elements to determine a better strategy. TWOX analysis uses strengths and weaknesses to take advantage of opportunities and both of them to reduce threats and to minimize weaknesses or avoid threats.

Slide 23

V- Conclusion/ Proposition

 Modern production combine with
artisan tradition.
 Constraints turns into advantages.
 Home replication strategy.
 United Arab Emirates:
 Wealthy people
 Westernisation of the culture

Slide 24

Thank you for listening, if you have
any questions, don’t hesitate.

Slide 25

References

Macro environment
http://www.actinnovation.com/innobox/outils-innovation/analyse-pestel http://www.insee.fr/fr/themes/tableau.asp?reg_id=98&ref_id=CMPTEF08336 http://economic-research.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=21939 http://data.lesechos.fr/pays-indicateur/italie/consommation-des-menages.html http://data.lesechos.fr/pays-indicateur/italie/taux-de-la-tva-applique.html http://www.lexpress.fr/actualites/1/economie/italie-l-inflation-au-plus-haut-depuis-2008_1071702.html http://www.boffi.com/EN/FlagshipStoresAndBoffiStudio.aspx

Micro environment
http://fr.slideshare.net/JapanRetailNews/kitchen-market-japan-2009 http://www.cotemaison.fr/chaine-d/deco-design/boffi-cuisine-boffi-ce-qu-il-faut-savoir-sur-boffi_12669.html http://www.boffi.com/EN/Dealers/asia/china.aspx

http://www.livemint.com/Industry/RtVTQn3LvsAw3IryI3qJ6J/Roberto-Gavazzi%E2%80%93The-basic-Boffilanguage-will-remain-in-In.html http://www.cotemaison.fr/cuisine/cuisiniste-le-nouveau-top-30-des-meilleurs-cuisinistes_3364.html http://designmafed.wordpress.com/2013/04/21/a-visit-to-the-boffi-showroom/ http://cuisinelove.com/lacuisineequipee/index.html

But also: Presentation given by Coventry

Cite this Analysis of Boffi’s international strategy

Analysis of Boffi’s international strategy. (2016, Jul 14). Retrieved from https://graduateway.com/analysis-of-boffis-international-strategy/

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