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Decathlon USA 2017

#Internationalization #Marketing #strategy #Business #Model


Abstract

The Decathlon group celebrated in 2016 its 40th Anniversary. The French sporting goods retailer that built its success on its “Make sport available for the many” model has become one of the most famous Sporting goods brands in the world since it started its internationalization in 1986. However, a country is missing in the Decathlon’s success world map. The United States has been for many years a tricky and confusing subject for the Decathlon’s top management team. The first try in 2000 has seemed to be the logical follow-up in the Decathlon’s international growth strategy. Matthieu Leclerc, the Decathlon’s founder’s son applied the same business model that made the Sporting Goods retailer renowned: high volume and low prices strategy. Six years later, sales on the US market did not take off, and the market has become even more competitive. The French retailer decided to sell the last stores and leave the country. The US$10 billion revenue reached symbol in 2017 showed the strong potential of the French sports goods group in a competitive and constantly changing market. The USA team led by Michel D’Humières, CEO of Decathlon USA, is ready to conquer the US market for the second time with a new approach. In December 2017, Decathlon targets the West-cost of the US by opening its first store in San Francisco. Despite the American Sporting Goods market’s challenges that forced many competitors to close down, the Decathlon USA’s objective is to remain profitable in the long-run on the US market. Should Decathlon USA pursue the same marketing strategy that made the French retail famous, or should they differentiate their offer facing such a competitive and unstable market? Would Decathlon achieve its dream to be number one in the world?

Detailed information

Case ID 18-1082
Published 2018
Industry SPORTING GOODS, TOY, AMUSEMENT GOODS AND MUSICAL INSTRUMENT STORES
Analyzed Area Marketing
Pages 28
Language English
Teaching Note Attached