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Présentation intermarché

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description of Verical Integration with an exemple of a french company : Les Mousquetaires, Intermarché.

description of Verical Integration with an exemple of a french company : Les Mousquetaires, Intermarché.

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  • 1. All united against the expensive life!!
  • 2. Les Mousquetaires, IntermarchéEnterprise are essential for economic system :• Places of production and distribution of products of consumption => Mouvement of Money.• Several competitors :
  • 3. PlanI) Presentation of the group Les Mousquetaires, Intermarché.II) The Strategies of Les Mousquetaires, Intermarché : A) The Vertical Integration. B) The Diversification.III) Why they have chosen those 2 strategies ?
  • 4. Presentation of the group Les Mousquetaires, Intermarché :• Company established in 1969 with the name : EX Offices de distribution• By Jean-Pierre Le Roch• In 1972, the EX became Les Mousquetaires, headquarters settled down in Paris.
  • 5. Presentation of the group Les Mousquetaires, Intermarché :• On June 9th 2009, Les Mousquetaires announced the extension of the name Intermarché for all their food subsidiaries except Netto. New visual identity
  • 6. Presentation of the group Les Mousquetaires, Intermarché :The sign is declined according the sales area and its localization : Intermarché Hyper for largest stores, more than 3200 square meter. Intermarché Super for stores around 2000 square meter. Most stores with the old concept of Les Mousquetaires. Intermarché Express for retail outlets less than 1000 squatter meter. This type of store is located in large cities : Paris, Lyon, Lille, Toulouse, Nice, …• 24 Intermarché Express in 2011• 50 by the end of 2012
  • 7. Presentation of the group Les Mousquetaires, Intermarché : Intermarché Contact replaces the old Ecomarché in the rural areas.• In 2002, total sales areas more than 2.66 million square meters.
  • 8. Presentation of the group Les Mousquetaires, Intermarché :• Intermarché has its own brand : Top Budget• Top Budget includes more than 450 food products : 50% or 75% cheaper than products of top brand.
  • 9. Presentation of the group Les Mousquetaires, Intermarché :• The slogan of Intermarché is: All united Against The expensive life!!
  • 10. The strategies of Les Mousquetaires, Intermarché : V.IWhat is The vertical Integration ?Vertical Integration is an approach to increase or decrease thelevel of control that a company has on its products as input andproduct distribution of outputs.With Vertical Integration enterprises control more than one ofthe successive production stages.
  • 11. The strategies of Les Mousquetaires, Intermarché : V.IThere are two types of Vertical Integration:• Backward Integration• Forward integration.
  • 12. The strategies of Les Mousquetaires, Intermarché : V.I• The Backward Integration :The Backward Integration integrates the preceding productionstages of a product. The enterprise has a control of its product ofinput or its alimentation. This type of Integration is also calledthe upstream expansion.
  • 13. The strategies of Les Mousquetaires, Intermarché : V.I• The Backward Integration : Raw Materials Intermediate Manufacturing & ASSEMBLY Distribution : Supermarket Intermarché End customer
  • 14. The strategies of Les Mousquetaires, Intermarché : V.I• The Forward Integration : Also called the downstream expansion. This integrationintegrates the next production stage and allows the firm tocontrol the distribution.
  • 15. The strategies of Les Mousquetaires, Intermarché : V.I Raw Materials Intermediate Manufacturing ASSEMBLY & Distribution : Supermarket Intermarché End customer
  • 16. The strategies of Les Mousquetaires, Intermarché : V.I• The Internal expension : The firm creates a new line of production.• The External expension : The firm buy an existing compagny. No more opportunism with subcontractors. More efficient. Prices of products sold more low.
  • 17. The strategies of Les Mousquetaires, Intermarché : V.I• Intermarché is the only one in France to have its own fishing boats: - 40 fishings boats - 33 000 tons of fish per year - 20000 tons for Intermarché - One thousand of workers thanks to fishing boats.
  • 18. The strategies of Les Mousquetaires, Intermarché : V.I• Gulf Stream for fresh fish.• Captain Cook for smoked fish and canned fish.• Captain Houat & Odysée for frozen fish
  • 19. The strategies of Les Mousquetaires, Intermarché : V.I• Intermarché is also the owner of 6O factories, mainly in food- processing industry: - Bouton d’Or - A gigantic slaughterhouse - A canning vegetable and even water sources minerals - A wine factory
  • 20. The strategies of Les Mousquetaires, Intermarché : V.I• Most part of all industries are located in western France.
  • 21. The strategies of Les Mousquetaires, Intermarché : V.I• 38% of products purchased in Intermarché are from its own factories.• Today Intermarché is the head of a small industrial empire of 9,000 employees who weighs 2.8 billion in revenue.The goal of Intermarché : To make 4 million euros of turnover per year by 2015. To take part of the top 5 of the big French Food-processing industries
  • 22. The strategies of Les Mousquetaires, Intermarché : Diversification.• Strategy used to expend firm’s operations by adding new markets, new products, new services, or new stages of production to the existing business.• Goal :To allow the company to enter linesof business that are different fromcurrent operations.
  • 23. The strategies of Les Mousquetaires, Intermarché : Diversification.• In 1979 Les Mousquetaires are studying several possible path of development. foundation of Bricomarché the same year.In 1980 : Restaumarché.
  • 24. The strategies of Les Mousquetaires, Intermarché : Diversification.• In 1982 : Stationmarché, today called• Restaurant :
  • 25. Why they have chosen those two strategies ? To be one of the biggest French food- processing.To control quality, quantity.Avoid opportunism of subcontractor.To sell product with a low price.To take a big part of the market

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