Maisons Du Monde Essay

817 words - 4 pages

Founded in 1996, Maisons du Monde offers a selection of decoration items and furniture from exotic locations to its customers through multi-format stores and a wide eCommerce platform. The French firm is currently established in France, Belgium, Luxembourg, Germany, Spain and Italy. It is currently looking for op- portunities abroad in order to increase its profitability, its growth and its brand recognition. Maisons du Monde differentiates itself not only by its very appealing, trendy and frequently renewed products at constant and competitive prices but also by its extraordinary merchandising and its strong service. The company is mainly active in the B2C market targeting essentially women ...view middle of the document...

A market analysis at both macro- and microeconomics level follows the country selection step. This analysis, based on the CAGE framework and Porter?s five forces, has been set up in order to have a better understanding of the British environment. Two serious threats were revealed; products are easily substitutable due to competing prices and the competitive rivalry is strong. How- ever, these two threats show that the demand on the market is strong and that there is an opportunity for Maisons du Monde to grab market shares and improve its growth.
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Thirdly, thanks to the SWOT and TOWS analysis along with the previous models and frameworks, further recommendations have been made: Maisons du Monde should implement a strategy of attack by using its high margin to open stores in the United Kingdom in order to gain market shares. It should also implement a strategy of defence by taking advantage of its absent marketing costs and improve its in-store service in order to gain more customers. Finally, by opening a store next to its competitors, Maisons du Monde could benefit from their traffic.
Fourthly, based on the eclectic paradigm of Dunning, an entry mode analysis has been elaborated. It would be best for the firm to enter the British market through a Foreign Direct Investment (Green-field investment) and open wholly owned stores. The firm not only has ownership advantages but also has locational advantages; which suggests...

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