Picard's Pest and Porter's Analysis. the Pontetial of a French Company Expanding Into the Uk.

3310 Words Aug 6th, 2011 14 Pages
CONTENTS PAGE

1. EXECUTIVE SUMMARY 2
2. INTRODUCTION 2 2.1 Picard overview 4

2.2 Picard´s corporate strategy 5

2.3 SWOT analysis 6

3. PEST ANALYSIS 6
4. PORTER´S FIVE FORCES Analysis of entering the UK Market 7
5. CONCLUSION 11
6. BIBLIOGRAPHY 12
7. APPENDICES 13

1. EXECUTIVE SUMMARY

The aim of this report is to analyse Picard´s market performance as well as challenges in its operating market using the PEST analysis tool, in order to identify if the company has prospects of entering and succeeding in the UK based on Porter´s five forces model.

Picard is a French frozen food retailer focusing exclusively on its own brand product lines. The company has grown to be France´s leading frozen food
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Picard´s corporate strategy

Picard´s focus on a single segment of the market has positioned the company as the market leader in frozen food in France, with the vision of convenience, innovation and quality at affordable prices to everyone. Following this defined marketing strategy Picard management developed their position from 12.5% market share in 2002 to 20% in France today (Picard.fr, 2010), running approximately 800 stores and a plan to continue to expand, opening around 50 stores per year. Almost a million households buy frozen food from Picard with a wide audience ranging from large families to pensioners, students and foodies.

In Italy, “Picard i Surgelati” is the largest specialised network of frozen food sales, with a portfolio of 700 SKUs tailored to its market needs, selling mostly frozen raw products, differently to the wide range of dishes in France. Picard´s main values here are proximity, quality and service, and the market is identified as growing with plans to continue opening new stores and expanding geographically (Picard.it, 2011). In 1999 the company bought the Italian subsidiary Gel 2000 to open its 28 stores in Italy, using a strategy of internationalization through acquisition.

Picard overall price strategy is characterised as a premium proposition. The retailer is known to offer high quality and services to customers,

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