SlideShare a Scribd company logo
1 of 23
Billabong-France
1
Austin Toque
MBA Capstone
MBA 6900
April 3, 2015
Billabong-France
2
Contents:
Introduction
o Summary
SWOT Analysis
o Strengths, Weaknesses, Opportunities, Threats
Subsidiary Integrations
o Proposalof Subsidiary Additions
Fundraising & Event Integrations
o Proposalof Fundraising Opportunities
AmbassadorStructuring Opportunities
o Proposalof AmbassadorOpportunities
Communication Innovation Integration
o New Communication Framework
Conclusion
o Goals & Mission
o Career Goals
Billabong-France
3
Introduction:
The importance of surf preservation and wellness of lifestyle is a goal I have set in my
life as well as my career. There are many different outlooks and directions I could take in
achieving this goal. Progression in my education has allowed me to apply my knowledge of
business strategies and theories towards a surf related company that is also progressive and
innovative. I have chosen to research and complete my master’s degree of business capstone
project on Billabong International. Billabong is one of the leading competitors of surf industries
that also shares in my passion for surfing and surf related importance. Considering Billabong is
so large and reaches many corners of the Globe, I chose to focus on Billabong’s awareness and
brand recognition in France.
Summary:
Billabong International operates in Australia, North America, Europe, Japan, New
Zealand, South Africa and Brazil. It is headquartered in Burleigh Heads, Australia, and
employed about 4,000 people. The company recorded revenues of $1,343.4 million during the
financial year ended June 2013 (FY2013), a decrease of 13.5% compared with FY2012. The
operating loss of the company was $796.2 million in FY2013 as compared to an operating loss of
$482 million in FY2012. The net loss was $859.5 million in FY2013, as compared to a net loss
of $275.6 million in FY 2012."(Billabong International Ltd. SWOT Analysis 2014)
Billabong International is engaged in the marketing, distribution, wholesaling and
retailing of apparel, accessories, eyewear, wetsuits and hard goods. The company's large product
base is offered through multiple channels which cater to a wide spectrum of customers and
enhances its revenue generation capability. However, intense competition could have affected
Billabong-France
4
Billabong’s market share. Considering that Billabong is already a major competitor, my goal will
extend to secure the future of Billabong specifically in the country of France. This will be
completed by introducing new business decisions and strategies that are both innovative and
ethical. My goal is to successfully integrate French as well international subsidiaries that give a
new and fresh dynamic towards Billabongs opportunities and mission in France. I will bring a
higher awareness and role for young and French Billabong ambassadors in French regions.
Continued, I aim to increase the importance of surf preservations and wellness of lifestyle
through fundraising and special events held by Billabong subsidiaries and affiliates of action
sport industries. My goal if executed affectively will benefit and increase the success in the
French region while creating new possibilities for Billabong.
Billabong-France
5
SWOT Analysis:
Billabongs current strengths consist of large product base and multi-channel operations,
significant footprint in major markets, and expansion through strategic acquisitions. Weaknesses
consist of revenue decline affecting the company’s profitability and cash position in the current
industry. Opportunities include restructuring initiatives likely to help the company in its top-line
growth, growth in global online retail sector which is likely to help the company in generating
revenues. Finally, threats to Billabong are weak economic conditions in Europe, and intense
competition may affect market share. Currently it is imperative to increase a focus on the
opportunity to improve the current status in Europe.
In regards to the new implementations that will be incorporated into Billabong-France,
there is a threat, but also a new opportunity. If the subsidiary opportunities are accepted by
Billabong stakeholders, then the question of distribution and storage capacity will need a
strategic resolution. In comparison to the levels of distribution globally, the amount of acquired
materials requiring proper distribution is minimal. However, after this certain obstacle had
surfaced throughout other Billabong locations, a solution to promise inventory levels and
distribution must be addressed. “The growth of multi-channel retailing and online shopping has
changed the type and size of orders Billabong processes, which made original materials handling
and order fulfilment processes increasingly inefficient.” “The integration of retail operation
presented Billabong with further logistical challenges with an increase in inventory and
associated storage requirements. We again partnered with Dematic to help develop a more
optimal storage solution.”(BILLABONG PUTS ITS ORDERS IN PLACE, 2013)
Billabong-France
6
The demand for Billabong products is consistent and with new possible subsidiaries in
France, there will be an increased minimal demand to accommodate new products and materials.
The only solution is to broaden the opportunities for demand and inventory within the supply
chain. “Billabong is enjoying significantly improved supply chain performance following a
recent order fulfilment system upgrade at its national distribution center (DC) on the Gold Coast.
The multi-channel integrated retail logistics solution from Dematic has increased productivity by
more than 20% across the site, and has also improved accuracy, throughput and occupational
health and safety (OH&S) at the 20,000 sqm facility.”(BILLABONG PUTS ITS ORDERS IN
PLACE, 2013)
“Billabong has been taking several restructuring initiatives. In brand building, the
company is focusing on the sport market for the young consumer by strengthening its team of
athletes. For example, for brand Billabong, the company re-signed 2012 world champion surfer,
Joel Parkinson. It also signed Jack Robinson, a young surfer. In January 2014, the company
restructured its marketing group into four parts: men's marketing; women's marketing; brand
creative; and digital marketing, which includes both e-commerce and social. According to
Billabong, men's and women's marketing teams will focus on its integrated go-to-market
calendars, its athlete, advocate and event activation and its customer relationship marketing.”
(Billabong International Ltd. SWOT Analysis 2014) There is one professional surfer that is
currently on the World Surfing League tour and his name is Jeremy Flores. Jeremy Flores
currently is an ambassador for Quicksilver. Quicksilver uses this ambassador frequently to show
his progressive journey through his rollercoaster career. I apply this strategy towards the
Billabong team as well.
Billabong-France
7
Subsidiary Integration:
Billabong owns and operates many different subsidiaries consisting of Nixon, Element,
RVCA, Kustom, Palmers Surf Wax, Honolua, Xcel, Tigerlily, Sector 9, and Von Zipper.
Combined, these family brands focus on different segments. All the Billabong groups’
particularly focus on different segments of the action sport world. Broadly, Billabong could be
viewed as one large brand including the subsidiaries that successfully markets to a widely large
spectrum of actions sports and comfortable living. More closely, Billabong is successful in
focusing brand image towards more specific areas of action sports and comfortable living
through the specific brands listed. To the company as a whole, Billabong is successful in
integrated marketing that causes awareness for Billabong resulting in awareness for the
subsidiaries as well.
During this innovative stage of Billabong subsidiary proposals, I will explain the
dynamics and demand for Billabong products. “An innovation adopted by retailers is
merchandising. This is a set of methods and techniques for presenting products in an active form,
at the point of sale, in order to optimize sales. Merchandising is based on several activities. One
of them is the continuous availability of products, both for sale and in stock. Other activities are:
products presentation on shelves, grouping the products on categories based on logic. The
innovations introduced until now in retail led to its intensive development, both as sales methods
(supermarkets, hypermarkets, specialized stores etc.) and the techniques and technologies used to
attract and retain customers.”(BĂLĂȘESCU, 2013) By supporting and partnering with local
businesses, the technique of native support and success will allow Billabong to invest into these
businesses which gain loyalty by the French locals.
Billabong-France
8
There is a dynamic that associated with surf style which has changed within the last
decade. In the past surf style has usually been pretty radical relaxing clothes that usually make a
statement. The subsidiaries of Billabong has also had a related past for supply and demand.
However, there is more freedom of expression through action sports now, not just surfing.
Surfing in particular has given consumers an opportunity create a surf style that adapts to their
preferences. "While the target customer for Billabong's main line is an 18-year-old heading to
college, Designer's Closet aims to reach a woman in her early twenties who loves nightlife.
Among the items that Billabong would never dream of including in the main line are a leotard,
high-waisted jeans and houndstooth-printed leggings. The customer is looking for more."(Tran
2008) The opportunities offered to the young companies in France and abroad will allow
customers to see a new dynamic side to Billabong offering freedom.
Initially, there will be an ethical business strategy to leverage a local French surf brand
called Cuisse de Grenouille. It is a rare home-grown brand that incorporates surf style and
French style. “French surfer-turned-modern gentlemen's brand Cuisse de Grenouille is taking a
more real estate savvy approach to retail expansion. Having just set up its second stand-alone
unit in Paris within a year, the young company is scouting up-and-coming neighborhoods before
they turn into key shopping destinations and become unaffordable. Its most recent scoop: Paris'
Batignolles district. “It's like a village here,” said Séverin Bonnichon, a surfer-turned-
entrepreneur who founded Cuisse de Grenouille with his brother Lucas in 2010. “For now, it's
mostly bars and restaurants, but APC just moved in next door and our real estate agent is telling
us that more brands will settle here shortly,” he said of Place du Docteur Félix Lobligeois, where
the brand occupies a 380-square-foot space.” (French Indie Brands Turn To Retail 2014) This is
Billabong-France
9
an immature surf brand that could possibly be a subsidiary of Billabong’s French sector that
would allow for new opportunities for surf culture/style in France.
There will be an opportunity presented to a local shaper, Clean Cut Surfboards. Clean
Cut Surfboards is a surfboard factory that specializes in the manufacturing of custom surfboards
based in Anglet Basque coast in the south west of France. Over 20 years strong experience in the
design and production of surfboards, the shaper Johan Leconte will help customers choose
among its different models all formable at your request and to fit particular styles. This
partnership with Billabong will allow Billabong to add custom boards to the merchandise in local
surf shops and Billabong retailers in French regions. I plan to also incorporate Daniels
Longboards, which is a French shaper that focuses on the art of shaping. In 1999, Daniel created
his own brand focusing performance, aesthetics and durability. Customers order the surfboard,
they dream it, and they trust it, especially in terms of decoration. Daniel personalizes the boards
according to the choices and tastes of the customer based on how he interprets the customer.
Each board is unique, created with love, creativity/dexterity, creating art. Considering there are
many French shapers that could use support in expanding, I have chosen only to incorporate a
few followed by reports of success and benefits.
There is an opportunity to collaborate with a neighboring surf company that was the
originator for surf enthusiast in France, Oxbow. Oxbow is a 23-year-old action sports brand
owned by France's Lafuma SA. “Oxbow was founded in 1985 as a ski company. In 1991, the
brand dipped its toe into the waters by launching the Longboard World Championship. Surf and
snow now make up equal parts of the $150 million company, which Lafuma acquired in 2005.
The company’s goal is to double sales in the next five years. Operating 44 stores in Germany,
France, Hong Kong and the U.S., Oxbow aims to have 50 by yearend. The firm is considering
Billabong-France
10
future units in Australia, South Africa and Eastern Europe. International sales are expected to
make up half of Oxbow's revenues in five years.”(Tran, 2008) There is a huge opportunity as
well as an obstacle regarding this action sport company from France. Oxbow is established and
growing, but Billabong has much to offer for the company. A small proposal to Oxbow with the
goal of creating more awareness and success for each side in France is an opportunity that could
possibly benefit both parties. Billabong could ethically team with Oxbow to promote wellness
through action sport cultures. Oxbow incorporates sustainable approaches to business decisions.
The collaboration would benefit Billabong’s presence in France while opening new doors for
Oxbow and assisting their integration into the U.S market.
Possible continued subsidiary addition is CoalaTree, based out of Colorado. Their
mission is to inspire a movement that will help people recognize the importance of living a
sustainable life by becoming more self-reliant and therefore less dependent on unnatural foods
and goods - one grow-bag, one organic t-shirt and one community at a time. The majority of the
products are made from organic or recycled materials. CoalaTree is passionate about sourcing
the finest sustainable materials and in so doing; they support organic farms throughout the world.
Buying and supporting organic goods persuades more farmers to grow organic. The company
knows that customers deserve more than just quality product and CoalaTree works consistently
to make sure that they nurture and maintain relationships with customers and the surrounding
communities. The goal and mission along with the style of CoalaTree is perfect to introduce to
France. There are many similarities within the French terrain that could incorporate the products
and sustainable methods which CoalaTree is founded. The French demographic could use this
movement for lifestyle wellness supported and introduced by Billabong International- French
Region.
Billabong-France
11
The excitement for sustainability and clean transportation is a small untapped market-
segment that Billabong will have the opportunity to integrate. Bike sharing for clean
transportation is an outlet for Billabong to be a sponsor (in the surfing world). Billabong would
release a project to implement bike rentals that can be found on every corner. “When public
bike-sharing programs were heralded as a way to curb parking shortages as well as greenhouse-
gas emissions, dozens of cities decided to give them a shot. Nonprofits in places like Colorado,
Virginia, and Florida launched fleets of communal bikes that people could borrow for free and
leave around town for the next rider to happen upon. No locks, no deposits and, pretty soon, no
bikes. Theft and vandalism quickly wiped out many of these freewheeling initiatives. This
month, however, Washington is rolling out America's first high-tech bike-sharing program. The
so-called SmartBikes come with key-card locking systems and tracking devices to prevent theft.
And officials are hoping the only problem this time around will be having enough supply to meet
demand.”(Dell, 2008) Paris has already implemented this strategy as an outlet to decrease traffic.
It has proven successful in Paris, but has not expanded. That is where Billabong will become
affiliated with French Vélib program called Très Cheap. This opportunity will stay focused in
tourist towns along the coast. This isn’t just to reduce traffic, but to create an outlet for
awareness of world preservation and clean transportation.
In the retail world, there is an innovation that is crucial in taking the next step towards in-
house innovative and customer loyalty. It all can be achieved by a new POS system called Isc
Touch 250. Billabong has already used this new technological strategy in the U.S. and will use
this system current Billabong locations as well as subsidiaries/partners in France. This is an
innovative merchandising tool that will keep Billabong locations and subsidiaries new-age and
fresh. “Studies of the retail experience have shown that over 60% of purchase decisions are made
Billabong-France
12
in store. This is why POS (Point of Sale Materials) are such a critical piece of the marketing
puzzle. For the most part, off-road shops do not have the kind of space a retail chain store would
have for POS displays, so creativity and understanding are key when it comes to developing
retail displays for the off-road retailer and consumer. Most marketers may not even realize the
power of POS and the results it can generate for a customer.”(THE POWER OF POINT OF
SALE MATERIALS, 2005) This seems to be a dated innovation that is available, but it is
evident not many retailers have taken advantage of this effective tool.
“Known for its dedication to the action sports customer and its tech savvy business
practices, Billabong selected Ingenico’s iSC Touch 250 Series Signature Capture device mostly
due to its security, multimedia functionality. The new POS solution allows Billabong to leverage
innovative hardware with unique multi-media brand building capabilities along with loyalty and
special promotion offerings at in-store checkout. The iSC Touch 250 terminal is a perfect fit for
Billabong – secure, durable, powerful and versatile. It allows Billabong to drive branding
programs for its multiple brands, highlight in-store specials with targeted ads, and securely
accept all currently existing forms of payment. After evaluating options from the leading
manufacturers, a decision was made to implement iSC Touch 250 due to its proven performance
and dependability. Since rolling out iSC Touch 250 solution in late 2012, our PIN-pad terminal
issues have dropped by 99%.” (Billabong Creates the Perfect In-Store Customer Checkout
Experience with Ingenico’s Secure Payment Devices, 2013) Below, is a simple graph in order to
exemplify the importance of innovative strategy implantation of Billabong in France.
Billabong-France
13
How does this bring my Billabong business strategy closer to my goal? Innovation of
business ideas and ethics come into play. Generally there is no other goal than success and profit.
However in my circumstance, Billabong has proven the success of prior business strategies all
over the world. Billabongs current business strategy is still successful, but has decreased in the
past five years. The addition of these possible subsidiaries given the approval of the Billabong
board of holders will allow the company to increase the success in France from a different
approach. These additions would bring the surf community in France, a little more together. New
strategies involving products, merchandising, and locations would further the strategy in creating
more awareness and brand loyalty. Subsidiary innovation for Billabong is both progressive and
ethically effective.
Billabong-France
14
Fundraising & Event Integration:
The purpose and goal for fundraising/event integrations is to broaden the spectrum of
Billabong-France. In the past and currently, Billabong International is involved with many
organizations that operate on a broad scale. This integration strategy has the purpose to use
Billabong’s mission and support localism in France. These fundraisers and events will promote
well-being for all French regional demographics. This will bring the local French culture
together, allowing the population to be a part of something more.
It is imperative and crucial to partner with Surfrider Foundation which is the grandfather
of surf related foundations supporting beach and saltwater preservations. “Founded in 1984 by a
group of visionary surfers in Malibu, California, the Surfrider Foundation's mission is "the
protection and enjoyment of oceans, waves, and beaches through a powerful activist network," It
now shepherds more than 50,000 members and 90 chapters worldwide. The Surfrider Foundation
Europe was founded in Biarritz in 1990, and the 70 employees of the French chapter, who had
been working in various locations, including garages, were sorely in need of a unified place to
conduct their business.”(Nayar, 2014) My goal with this foundation is to partner with them on
many events incorporating all present and new locations. At the heart of surfing and lifestyle
wellness, it is important for Billabong to incorporate the importance to keep the ocean and land
healthy.
As innovative strategies are applied, Billabong will have the opportunity to continue
innovative networking within local French regions. The market and culture for craft breweries
and beer is an untapped sector that can be used in many different areas of business if applied
correctly. “So it's interesting to note that there's a craft beer boomlet happening in franchising.
Billabong-France
15
Despite the differences between the beer industry and the franchise world, the industries have
turned out to be a good match, reinforcing a long-held truth; with beer, anything is
possible.”(DALEY, 2013) The integration of craft breweries and craft beer lounges as a
subsidiary partner/affiliate of Billabong will be executed by hosting Billabong fundraisers and
events. For example Billabong will use a French brewery to host a Surfrider event while creating
awareness to Surfrider, Billabong, and local businesses. This is a simple task that can create huge
waves for networking and building local infrastructure.
In France, there are four particular crafter breweries & lounges that will be presented
with this task and opportunity. La Tireuse is a craft beer lounge while Oldarki is a brewery
located near the French coastline closest to Biarritz. Lestrois8 & Cave à Bulles are both located
in the heart of Paris. These locations could strategically be used to create awareness and host
events all of which are supported by Billabong. Billabong affiliates or current subsidiaries could
host these events regionally. As this strategy progresses and has proven successful and effective,
more locations will be acquired throughout different regions. Billabong will be able to create a
web of networking significantly through fundraising and event hosting. This will restructure the
way Billabong-France is valued.
There will be an opportunity to Outer Reef & Rhythms. Outer Reef & Rhythms is
committed to operating in an environmentally and socially responsible manner to protect the
well-being of employees, customers and the community. They strive to operate in compliance
with all applicable environmental, health and safety laws and regulations. The organization
strongly believes that doing business in an ethical manner today means spreading good vibes for
tomorrow and days to come. I plan to incorporate this company as an outlet to fundraising
networks and events. The organization is currently located in the Caribbean; however this is an
Billabong-France
16
opportunity to incorporate a young successful organization that will spread awareness for well-
being. Outer Reef & Rhythms will be integrated into French regions, initially on the coast by
Billabong. Billabong will connect the organization with different locations affiliated with
Billabong.
AmbassadorStructuring Opportunities:
How to effectively create a Billabong French ambassador team that will make waves (no
pun intended). Since the beginning of surfing industries, there has been a promotional strategy of
sponsorship that has proven most effective, for many actions sports. Billabong has leveraged
brand ambassadors primarily in surfing, snowboarding, and wakeboarding allowing young and
veteran athletes to create a career from actions sport. A sponsorship from Billabong means an
athlete is a professional team member and promotes the sport of surfing or snowboarding for
Billabong. The athletes are provided funding and material in order to successfully promote the
brand. There are requirements in being a Billabong ambassador. Generally, a team member
promotes mainly through competitions and team apparel events. It is important to remember that
many of these professional surfers are completely booked for competitions and demos. However
there are many sponsored free surfers that will have more of an opportunity to participate.
As an innovative strategy through Billabong, team ambassadors will be used as
instruments to bring awareness of Billabong’s mission in the French region. There are currently
37 team members for surfing consisting of young surfers and veteran surfers. The applied
restructuring strategy will use these ambassadors to get involved within the French region in
order to bring more awareness and popularity to France. These occurrences will be monthly is in
order to frequently bring awareness to French regions. Considering there are not many French
Billabong-France
17
team members, more Billabong team members will have the opportunity to be involved in
France. The main purpose of this strategy is to get the professional Billabong team members to
interact and show loyalty towards French Billabong subsidiaries as well as showing concern for
self/world preservations.
Ambassador Integration Possibilities:
 Sustainable Events
o Local sustainable awareness events  Billabong team members will
promote/assist
 Accomplishments  Showing awareness and importance for
environmental preservation
 Water Filtration
o Education of clean water devices & awareness  Billabong team
members will promote/assist
 Accomplishments  Education of demand/importance for clean
water filtrations
 Surf Camps/Lessons
o Billabong will host surf camps in France  Billabong team members will
teach/educate
 Accomplishments  Creating a safe outlet for young kids in city
and suburban areas
 Organic Materials & Food
o Promoting the importance of organic food/materials in France 
Billabong team members will assist in promotion/education
 Accomplishments  Education/awareness of chemical-free living
& eating
 Clean Energy
o Promoting start-up clean energy companies in France  Billabong team
will promote/educate clean energy solutions & strategies
 Accomplishments  Clean energy integrations in French regions
 Beach/Ocean Preservation
o Promoting the preservations of beaches & oceans in France  Billabong
team will promote/participate in cleaning of beaches & ocean awareness
 Accomplishments  Awareness & action of ocean/beach
preservations
 Clean Transportation
o Introducing Bike Sharing coast of France  Billabong team will assist in
promoting Bike Sharing &
 Accomplishments  Successful release of clean transportation on
coast of France
 Craft Brewery Events
Billabong-France
18
o Breweries will have the chance to promote local businesses & hold events
 Billabong team will assist promotions/events
 Accomplishments  Sustaining local businesses
Communication Innovation Integration:
The implementation of these innovative strategies towards Billabong-France requires a
concrete foundation of communication and ethics. Both go hand in hand creating optimal results
of successful integrations throughout each subsidiary. Considering the is a wide range of new
subsidiary and fundraising/event opportunities, each business decision needs to be addressed
appropriately with strategic communication. Ethical business decisions are a core discipline that
must be re-established in the framework of Billabong-France.
Regardless of present success of communication at Billabong International, there will be
a new proposed communication strategy to incorporate into Billabong-France. This
transformation will be more of a collaboration of both old and new communication tools. This
strategy will incorporate a framework of top-down core disciplines (CEO, High management 
Low management, retail customer representatives).
Following is a condensed framework of a communication networking strategy. This strategy
implements transparency throughout different sectors of individuals and group, taking into
account individual’s preferences and privacy. Transparency will allow Billabong-France to be
communication-friendly with limited boundaries. It puts all sectors of employees and
representatives on an equal playing field allowing each to really become involved and invest in
Billabong-France. This ethical communication network is explained by (KCHAICH EP
CHEDLI, 2014).
Billabong-France
19
 Supervisors  Access to all resources
o Manage business  Since it will be in contact with people who have knowledge
and various experiences
o Motivation  Moral support or emotional support from the people who make up
the network
o Material Resources  Form of funding, equipment etc.
 Interaction between members of the network causes the movement
o Multiple relationships within the network helps both, the development of
individual creativity & development of innovation
 Individual Network
o Structure of the network
 Number of individuals with whom the leader maintains relations
 The way those people are closely linked together in a network; a network
where everyone knows at a high density (total transparency)
o Contents of the links
 Strength of information
 When the ego maintains a strong, reciprocal and eventful relation with the
alter, the link is called intense
 Intensity can be measured based on the frequency and duration of the
interactions
o Attributes of alters
 Demographic, organizational, professional, technical characteristic 
Measure which network of a player can connect to other actors on the
demographic, technical, geographical plan
Billabong-France
20
 Information
o Collecting information  Information allows the supervisor to access missing
resources within the company  Gaining help to locate them due to the people
who form network
o Employees, partners, consultants, etc. within network of supervisors  Most
important sources to the business  Major source of information
 Motivation
o Motivation comes essentially from high than low  motivation can be an obstacle
to the supervisor making business decisions
o Motivation allows promotion of confidence in direction of actions and justify the
business decisions
Billabong-France
21
This broad outline followed by graphing illustrations allows there to be a viewable
proposal of a redefining networking and communication strategy. Billabong-France will
incorporate effective communication tools in order to accomplish daily tasks, while networking,
to maximum potential task and goals. This will be established and introduced through a
communication tool that will allow all members of Billabong to be able to communicate, share
knowledge and frequently asked questions. This innovation will create transparency,
equalization, productivity, and trust throughout sectors of Billabong-France.
Conclusion:
“Limit the analysis to innovation in large organizations that typically recognize the
importance of innovation, but struggle with development and commercialization of radically
innovative products. Within these firms, routines, structures, and cultural norms often create
obstacles to innovation, rendering the question of what factors govern team radical innovation
pertinent.”(ALEXANDER & VAN KNIPPENBERG, 2014)
Innovation was the backbone of these new strategies. The future of Billabong is
uncertain, but obstacles and goals remain. It is my mission and goal to successfully integrate
different regions of France in order to innovative surf industry opportunities. There is no reason
why Billabong should be refrained from venturing outside the surf industry box with the intent to
expose new opportunities for the surf industry.
Concluded are proposed strategies of Billabong-France strategic and innovative
implementations of opportunity analysis, subsidiary integrations, fundraising & event
integrations, ambassador structuring opportunities, and communication innovation integration. If
Billabong-France
22
accepted and applied towards the current business strategy of Billabong-France, the outcome will
prove successful integration of local businesses, fundraising & events.
These strategies are innovative and will produce a new opportunity to expand and
increase the potential for Billabong in France. My career goal will be to erase the notion of
boundaries, while introducing valuable outlets to expand while incorporating core disciplines,
ethics & morality, personal wellness, sustainability, and most importantly imagination towards
my passion for the surfing industry.
Billabong-France
23
REFERENCES:
• Billabong International Ltd. SWOT
Analysis. (2014). Billabong
International, Ltd. SWOT Analysis,
1-7.
• French Indie Brands Turn To Retail.
(2014). WWD: Women's Wear
Daily, 208(114), 2b-1
• Tran, K. L. (2008). ACTION
SPORTS FIRMS MARCH
FASHION-FORWARD. WWD:
Women's Wear Daily, 195(53), 13
• Tran, K. L. (2008). Oxbow
Launching Action Sports In U.S.
With French Twist. WWD: Women's
Wear Daily, 196(64), 26.
• BĂLĂȘESCU, M. (2013). THE
INFLUENCE OF INNOVATIONS
AND TECHNOLOGY ON THE
FUTURE OF RETAIL. Bulletin Of
The Transilvania University Of
Brasov. Series V: Economic
Sciences, 6(2), 9-14.
• Billabong Creates the Perfect In-
Store Customer Checkout
Experience with Ingenico’s Secure
Payment Devices. (2013, March 6).
Retrieved April 1, 2015, from
http://ingenico.us/wp-
content/uploads/2013/02/Billabong.p
df
• THE POWER OF POINT OF SALE
MATERIALS. (2005). Off-Road
Business, (8), 42-44.
• BILLABONG PUTS ITS ORDERS
IN PLACE. (2013). MHD Supply
Chain Solutions, 43(4), 32-33.
• Nayar, J. (2014). Surfrider
foundation Europe. Contract, 55(4),
118-121.
• DALEY, J. (2013). Turning on the
taps. Entrepreneur, 41(9), 92-99.
• Dell, K. (2008). Bike-Sharing Gets
Smart. Time, 171(25), 113-115
• ALEXANDER, L., & VAN
KNIPPENBERG, D. (2014).
TEAMS IN PURSUIT OF
RADICAL INNOVATION: A
GOAL ORIENTATION
PERSPECTIVE. Academy Of
Management Review, 39(4), 423-
438. doi:10.5465/amr.2012.0044
• KCHAICH EP CHEDLI, M. (2014).
OBTAINED RESOURCES
THROUGH INDIVIDUAL
NETWORKING INSIDE THE
ORGANIZATION, CREATIVITY
OF THE SUPERVISOR AND
INNOVATION. Economics,
Management & Financial Markets,
9(4), 376-394.

More Related Content

What's hot

Shane Downey - Digital Student of the Year PDF
Shane Downey - Digital Student of the Year PDFShane Downey - Digital Student of the Year PDF
Shane Downey - Digital Student of the Year PDFShane Downey
 
Westfield Innovative Business Retail Proposal
Westfield Innovative Business Retail Proposal Westfield Innovative Business Retail Proposal
Westfield Innovative Business Retail Proposal Erika Lee
 
The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report Mimi Gunn
 
Abercrombie & Fitch in Brazil
Abercrombie & Fitch in BrazilAbercrombie & Fitch in Brazil
Abercrombie & Fitch in BrazilLuis Banlaky
 
16 06 brand research tu_f&f_george_ssts.smpt
16 06 brand research tu_f&f_george_ssts.smpt16 06 brand research tu_f&f_george_ssts.smpt
16 06 brand research tu_f&f_george_ssts.smptJini Kong
 
Marketing Mix of Burberry Company 2011
Marketing Mix of Burberry Company 2011Marketing Mix of Burberry Company 2011
Marketing Mix of Burberry Company 2011Miraziz Bazarov
 
Analysis of business activity: Burberry
Analysis of business activity: BurberryAnalysis of business activity: Burberry
Analysis of business activity: BurberryAliya Urazaliyeva
 
International business final project on Burberry
International business final project on Burberry International business final project on Burberry
International business final project on Burberry Farah Sadiq Khan
 
Strategies at burberry
Strategies at burberryStrategies at burberry
Strategies at burberryMadhu Malesh
 
Lost Cachet of Burberry ----- the royal fashion house of trench coats
Lost Cachet of Burberry ----- the royal fashion house of trench coats Lost Cachet of Burberry ----- the royal fashion house of trench coats
Lost Cachet of Burberry ----- the royal fashion house of trench coats Arittra Basu
 
L'Oreal Brandstorm - Kiehl's
L'Oreal Brandstorm - Kiehl'sL'Oreal Brandstorm - Kiehl's
L'Oreal Brandstorm - Kiehl'sadakoku
 
Bata shoe company n
Bata shoe company nBata shoe company n
Bata shoe company nNahid hasan
 
Burberry uprise and downfall
Burberry uprise and downfallBurberry uprise and downfall
Burberry uprise and downfallsmarkalfat
 

What's hot (20)

Shane Downey - Digital Student of the Year PDF
Shane Downey - Digital Student of the Year PDFShane Downey - Digital Student of the Year PDF
Shane Downey - Digital Student of the Year PDF
 
Apparel in colombia
Apparel in colombiaApparel in colombia
Apparel in colombia
 
Case no.6 (group)
Case no.6 (group)Case no.6 (group)
Case no.6 (group)
 
Gap Inc. in 2010
Gap Inc. in 2010Gap Inc. in 2010
Gap Inc. in 2010
 
Westfield Innovative Business Retail Proposal
Westfield Innovative Business Retail Proposal Westfield Innovative Business Retail Proposal
Westfield Innovative Business Retail Proposal
 
The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report The Kooples Fashion Strategy Report
The Kooples Fashion Strategy Report
 
Abercrombie & Fitch in Brazil
Abercrombie & Fitch in BrazilAbercrombie & Fitch in Brazil
Abercrombie & Fitch in Brazil
 
16 06 brand research tu_f&f_george_ssts.smpt
16 06 brand research tu_f&f_george_ssts.smpt16 06 brand research tu_f&f_george_ssts.smpt
16 06 brand research tu_f&f_george_ssts.smpt
 
Gap case study
Gap case studyGap case study
Gap case study
 
Marketing Mix of Burberry Company 2011
Marketing Mix of Burberry Company 2011Marketing Mix of Burberry Company 2011
Marketing Mix of Burberry Company 2011
 
SWOT analysis of GAP Inc
SWOT analysis of GAP IncSWOT analysis of GAP Inc
SWOT analysis of GAP Inc
 
Analysis of business activity: Burberry
Analysis of business activity: BurberryAnalysis of business activity: Burberry
Analysis of business activity: Burberry
 
International business final project on Burberry
International business final project on Burberry International business final project on Burberry
International business final project on Burberry
 
Strategies at burberry
Strategies at burberryStrategies at burberry
Strategies at burberry
 
Lost Cachet of Burberry ----- the royal fashion house of trench coats
Lost Cachet of Burberry ----- the royal fashion house of trench coats Lost Cachet of Burberry ----- the royal fashion house of trench coats
Lost Cachet of Burberry ----- the royal fashion house of trench coats
 
L'Oreal Brandstorm - Kiehl's
L'Oreal Brandstorm - Kiehl'sL'Oreal Brandstorm - Kiehl's
L'Oreal Brandstorm - Kiehl's
 
Burberry Business Model
Burberry Business ModelBurberry Business Model
Burberry Business Model
 
Bata shoe company n
Bata shoe company nBata shoe company n
Bata shoe company n
 
Abercrombie & Fitch
Abercrombie & FitchAbercrombie & Fitch
Abercrombie & Fitch
 
Burberry uprise and downfall
Burberry uprise and downfallBurberry uprise and downfall
Burberry uprise and downfall
 

Similar to MBA CAPSTONE

Pantaloons supply chainmanagement
Pantaloons supply chainmanagementPantaloons supply chainmanagement
Pantaloons supply chainmanagementProlay Ray
 
Best Buy Strategy Report
Best Buy Strategy ReportBest Buy Strategy Report
Best Buy Strategy ReportAziz Ghani
 
Billabong presentation
Billabong presentationBillabong presentation
Billabong presentationiGo2 Pty Ltd
 
Emerge Credentials Linkedin .compressed
Emerge Credentials Linkedin .compressedEmerge Credentials Linkedin .compressed
Emerge Credentials Linkedin .compressedPerry Seelert
 
Emerge Credentials Linkedin
Emerge Credentials LinkedinEmerge Credentials Linkedin
Emerge Credentials LinkedinMark Dickinson
 
Nov 2020 GKO Presentation
Nov 2020 GKO PresentationNov 2020 GKO Presentation
Nov 2020 GKO PresentationMomentumPR
 

Similar to MBA CAPSTONE (8)

BILLABONG.docx
BILLABONG.docxBILLABONG.docx
BILLABONG.docx
 
Pantaloons supply chainmanagement
Pantaloons supply chainmanagementPantaloons supply chainmanagement
Pantaloons supply chainmanagement
 
Best Buy Strategy Report
Best Buy Strategy ReportBest Buy Strategy Report
Best Buy Strategy Report
 
Billabong presentation
Billabong presentationBillabong presentation
Billabong presentation
 
Emerge Credentials Linkedin .compressed
Emerge Credentials Linkedin .compressedEmerge Credentials Linkedin .compressed
Emerge Credentials Linkedin .compressed
 
Emerge Credentials Linkedin
Emerge Credentials LinkedinEmerge Credentials Linkedin
Emerge Credentials Linkedin
 
Essay On Brazil
Essay On BrazilEssay On Brazil
Essay On Brazil
 
Nov 2020 GKO Presentation
Nov 2020 GKO PresentationNov 2020 GKO Presentation
Nov 2020 GKO Presentation
 

MBA CAPSTONE

  • 2. Billabong-France 2 Contents: Introduction o Summary SWOT Analysis o Strengths, Weaknesses, Opportunities, Threats Subsidiary Integrations o Proposalof Subsidiary Additions Fundraising & Event Integrations o Proposalof Fundraising Opportunities AmbassadorStructuring Opportunities o Proposalof AmbassadorOpportunities Communication Innovation Integration o New Communication Framework Conclusion o Goals & Mission o Career Goals
  • 3. Billabong-France 3 Introduction: The importance of surf preservation and wellness of lifestyle is a goal I have set in my life as well as my career. There are many different outlooks and directions I could take in achieving this goal. Progression in my education has allowed me to apply my knowledge of business strategies and theories towards a surf related company that is also progressive and innovative. I have chosen to research and complete my master’s degree of business capstone project on Billabong International. Billabong is one of the leading competitors of surf industries that also shares in my passion for surfing and surf related importance. Considering Billabong is so large and reaches many corners of the Globe, I chose to focus on Billabong’s awareness and brand recognition in France. Summary: Billabong International operates in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil. It is headquartered in Burleigh Heads, Australia, and employed about 4,000 people. The company recorded revenues of $1,343.4 million during the financial year ended June 2013 (FY2013), a decrease of 13.5% compared with FY2012. The operating loss of the company was $796.2 million in FY2013 as compared to an operating loss of $482 million in FY2012. The net loss was $859.5 million in FY2013, as compared to a net loss of $275.6 million in FY 2012."(Billabong International Ltd. SWOT Analysis 2014) Billabong International is engaged in the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hard goods. The company's large product base is offered through multiple channels which cater to a wide spectrum of customers and enhances its revenue generation capability. However, intense competition could have affected
  • 4. Billabong-France 4 Billabong’s market share. Considering that Billabong is already a major competitor, my goal will extend to secure the future of Billabong specifically in the country of France. This will be completed by introducing new business decisions and strategies that are both innovative and ethical. My goal is to successfully integrate French as well international subsidiaries that give a new and fresh dynamic towards Billabongs opportunities and mission in France. I will bring a higher awareness and role for young and French Billabong ambassadors in French regions. Continued, I aim to increase the importance of surf preservations and wellness of lifestyle through fundraising and special events held by Billabong subsidiaries and affiliates of action sport industries. My goal if executed affectively will benefit and increase the success in the French region while creating new possibilities for Billabong.
  • 5. Billabong-France 5 SWOT Analysis: Billabongs current strengths consist of large product base and multi-channel operations, significant footprint in major markets, and expansion through strategic acquisitions. Weaknesses consist of revenue decline affecting the company’s profitability and cash position in the current industry. Opportunities include restructuring initiatives likely to help the company in its top-line growth, growth in global online retail sector which is likely to help the company in generating revenues. Finally, threats to Billabong are weak economic conditions in Europe, and intense competition may affect market share. Currently it is imperative to increase a focus on the opportunity to improve the current status in Europe. In regards to the new implementations that will be incorporated into Billabong-France, there is a threat, but also a new opportunity. If the subsidiary opportunities are accepted by Billabong stakeholders, then the question of distribution and storage capacity will need a strategic resolution. In comparison to the levels of distribution globally, the amount of acquired materials requiring proper distribution is minimal. However, after this certain obstacle had surfaced throughout other Billabong locations, a solution to promise inventory levels and distribution must be addressed. “The growth of multi-channel retailing and online shopping has changed the type and size of orders Billabong processes, which made original materials handling and order fulfilment processes increasingly inefficient.” “The integration of retail operation presented Billabong with further logistical challenges with an increase in inventory and associated storage requirements. We again partnered with Dematic to help develop a more optimal storage solution.”(BILLABONG PUTS ITS ORDERS IN PLACE, 2013)
  • 6. Billabong-France 6 The demand for Billabong products is consistent and with new possible subsidiaries in France, there will be an increased minimal demand to accommodate new products and materials. The only solution is to broaden the opportunities for demand and inventory within the supply chain. “Billabong is enjoying significantly improved supply chain performance following a recent order fulfilment system upgrade at its national distribution center (DC) on the Gold Coast. The multi-channel integrated retail logistics solution from Dematic has increased productivity by more than 20% across the site, and has also improved accuracy, throughput and occupational health and safety (OH&S) at the 20,000 sqm facility.”(BILLABONG PUTS ITS ORDERS IN PLACE, 2013) “Billabong has been taking several restructuring initiatives. In brand building, the company is focusing on the sport market for the young consumer by strengthening its team of athletes. For example, for brand Billabong, the company re-signed 2012 world champion surfer, Joel Parkinson. It also signed Jack Robinson, a young surfer. In January 2014, the company restructured its marketing group into four parts: men's marketing; women's marketing; brand creative; and digital marketing, which includes both e-commerce and social. According to Billabong, men's and women's marketing teams will focus on its integrated go-to-market calendars, its athlete, advocate and event activation and its customer relationship marketing.” (Billabong International Ltd. SWOT Analysis 2014) There is one professional surfer that is currently on the World Surfing League tour and his name is Jeremy Flores. Jeremy Flores currently is an ambassador for Quicksilver. Quicksilver uses this ambassador frequently to show his progressive journey through his rollercoaster career. I apply this strategy towards the Billabong team as well.
  • 7. Billabong-France 7 Subsidiary Integration: Billabong owns and operates many different subsidiaries consisting of Nixon, Element, RVCA, Kustom, Palmers Surf Wax, Honolua, Xcel, Tigerlily, Sector 9, and Von Zipper. Combined, these family brands focus on different segments. All the Billabong groups’ particularly focus on different segments of the action sport world. Broadly, Billabong could be viewed as one large brand including the subsidiaries that successfully markets to a widely large spectrum of actions sports and comfortable living. More closely, Billabong is successful in focusing brand image towards more specific areas of action sports and comfortable living through the specific brands listed. To the company as a whole, Billabong is successful in integrated marketing that causes awareness for Billabong resulting in awareness for the subsidiaries as well. During this innovative stage of Billabong subsidiary proposals, I will explain the dynamics and demand for Billabong products. “An innovation adopted by retailers is merchandising. This is a set of methods and techniques for presenting products in an active form, at the point of sale, in order to optimize sales. Merchandising is based on several activities. One of them is the continuous availability of products, both for sale and in stock. Other activities are: products presentation on shelves, grouping the products on categories based on logic. The innovations introduced until now in retail led to its intensive development, both as sales methods (supermarkets, hypermarkets, specialized stores etc.) and the techniques and technologies used to attract and retain customers.”(BĂLĂȘESCU, 2013) By supporting and partnering with local businesses, the technique of native support and success will allow Billabong to invest into these businesses which gain loyalty by the French locals.
  • 8. Billabong-France 8 There is a dynamic that associated with surf style which has changed within the last decade. In the past surf style has usually been pretty radical relaxing clothes that usually make a statement. The subsidiaries of Billabong has also had a related past for supply and demand. However, there is more freedom of expression through action sports now, not just surfing. Surfing in particular has given consumers an opportunity create a surf style that adapts to their preferences. "While the target customer for Billabong's main line is an 18-year-old heading to college, Designer's Closet aims to reach a woman in her early twenties who loves nightlife. Among the items that Billabong would never dream of including in the main line are a leotard, high-waisted jeans and houndstooth-printed leggings. The customer is looking for more."(Tran 2008) The opportunities offered to the young companies in France and abroad will allow customers to see a new dynamic side to Billabong offering freedom. Initially, there will be an ethical business strategy to leverage a local French surf brand called Cuisse de Grenouille. It is a rare home-grown brand that incorporates surf style and French style. “French surfer-turned-modern gentlemen's brand Cuisse de Grenouille is taking a more real estate savvy approach to retail expansion. Having just set up its second stand-alone unit in Paris within a year, the young company is scouting up-and-coming neighborhoods before they turn into key shopping destinations and become unaffordable. Its most recent scoop: Paris' Batignolles district. “It's like a village here,” said Séverin Bonnichon, a surfer-turned- entrepreneur who founded Cuisse de Grenouille with his brother Lucas in 2010. “For now, it's mostly bars and restaurants, but APC just moved in next door and our real estate agent is telling us that more brands will settle here shortly,” he said of Place du Docteur Félix Lobligeois, where the brand occupies a 380-square-foot space.” (French Indie Brands Turn To Retail 2014) This is
  • 9. Billabong-France 9 an immature surf brand that could possibly be a subsidiary of Billabong’s French sector that would allow for new opportunities for surf culture/style in France. There will be an opportunity presented to a local shaper, Clean Cut Surfboards. Clean Cut Surfboards is a surfboard factory that specializes in the manufacturing of custom surfboards based in Anglet Basque coast in the south west of France. Over 20 years strong experience in the design and production of surfboards, the shaper Johan Leconte will help customers choose among its different models all formable at your request and to fit particular styles. This partnership with Billabong will allow Billabong to add custom boards to the merchandise in local surf shops and Billabong retailers in French regions. I plan to also incorporate Daniels Longboards, which is a French shaper that focuses on the art of shaping. In 1999, Daniel created his own brand focusing performance, aesthetics and durability. Customers order the surfboard, they dream it, and they trust it, especially in terms of decoration. Daniel personalizes the boards according to the choices and tastes of the customer based on how he interprets the customer. Each board is unique, created with love, creativity/dexterity, creating art. Considering there are many French shapers that could use support in expanding, I have chosen only to incorporate a few followed by reports of success and benefits. There is an opportunity to collaborate with a neighboring surf company that was the originator for surf enthusiast in France, Oxbow. Oxbow is a 23-year-old action sports brand owned by France's Lafuma SA. “Oxbow was founded in 1985 as a ski company. In 1991, the brand dipped its toe into the waters by launching the Longboard World Championship. Surf and snow now make up equal parts of the $150 million company, which Lafuma acquired in 2005. The company’s goal is to double sales in the next five years. Operating 44 stores in Germany, France, Hong Kong and the U.S., Oxbow aims to have 50 by yearend. The firm is considering
  • 10. Billabong-France 10 future units in Australia, South Africa and Eastern Europe. International sales are expected to make up half of Oxbow's revenues in five years.”(Tran, 2008) There is a huge opportunity as well as an obstacle regarding this action sport company from France. Oxbow is established and growing, but Billabong has much to offer for the company. A small proposal to Oxbow with the goal of creating more awareness and success for each side in France is an opportunity that could possibly benefit both parties. Billabong could ethically team with Oxbow to promote wellness through action sport cultures. Oxbow incorporates sustainable approaches to business decisions. The collaboration would benefit Billabong’s presence in France while opening new doors for Oxbow and assisting their integration into the U.S market. Possible continued subsidiary addition is CoalaTree, based out of Colorado. Their mission is to inspire a movement that will help people recognize the importance of living a sustainable life by becoming more self-reliant and therefore less dependent on unnatural foods and goods - one grow-bag, one organic t-shirt and one community at a time. The majority of the products are made from organic or recycled materials. CoalaTree is passionate about sourcing the finest sustainable materials and in so doing; they support organic farms throughout the world. Buying and supporting organic goods persuades more farmers to grow organic. The company knows that customers deserve more than just quality product and CoalaTree works consistently to make sure that they nurture and maintain relationships with customers and the surrounding communities. The goal and mission along with the style of CoalaTree is perfect to introduce to France. There are many similarities within the French terrain that could incorporate the products and sustainable methods which CoalaTree is founded. The French demographic could use this movement for lifestyle wellness supported and introduced by Billabong International- French Region.
  • 11. Billabong-France 11 The excitement for sustainability and clean transportation is a small untapped market- segment that Billabong will have the opportunity to integrate. Bike sharing for clean transportation is an outlet for Billabong to be a sponsor (in the surfing world). Billabong would release a project to implement bike rentals that can be found on every corner. “When public bike-sharing programs were heralded as a way to curb parking shortages as well as greenhouse- gas emissions, dozens of cities decided to give them a shot. Nonprofits in places like Colorado, Virginia, and Florida launched fleets of communal bikes that people could borrow for free and leave around town for the next rider to happen upon. No locks, no deposits and, pretty soon, no bikes. Theft and vandalism quickly wiped out many of these freewheeling initiatives. This month, however, Washington is rolling out America's first high-tech bike-sharing program. The so-called SmartBikes come with key-card locking systems and tracking devices to prevent theft. And officials are hoping the only problem this time around will be having enough supply to meet demand.”(Dell, 2008) Paris has already implemented this strategy as an outlet to decrease traffic. It has proven successful in Paris, but has not expanded. That is where Billabong will become affiliated with French Vélib program called Très Cheap. This opportunity will stay focused in tourist towns along the coast. This isn’t just to reduce traffic, but to create an outlet for awareness of world preservation and clean transportation. In the retail world, there is an innovation that is crucial in taking the next step towards in- house innovative and customer loyalty. It all can be achieved by a new POS system called Isc Touch 250. Billabong has already used this new technological strategy in the U.S. and will use this system current Billabong locations as well as subsidiaries/partners in France. This is an innovative merchandising tool that will keep Billabong locations and subsidiaries new-age and fresh. “Studies of the retail experience have shown that over 60% of purchase decisions are made
  • 12. Billabong-France 12 in store. This is why POS (Point of Sale Materials) are such a critical piece of the marketing puzzle. For the most part, off-road shops do not have the kind of space a retail chain store would have for POS displays, so creativity and understanding are key when it comes to developing retail displays for the off-road retailer and consumer. Most marketers may not even realize the power of POS and the results it can generate for a customer.”(THE POWER OF POINT OF SALE MATERIALS, 2005) This seems to be a dated innovation that is available, but it is evident not many retailers have taken advantage of this effective tool. “Known for its dedication to the action sports customer and its tech savvy business practices, Billabong selected Ingenico’s iSC Touch 250 Series Signature Capture device mostly due to its security, multimedia functionality. The new POS solution allows Billabong to leverage innovative hardware with unique multi-media brand building capabilities along with loyalty and special promotion offerings at in-store checkout. The iSC Touch 250 terminal is a perfect fit for Billabong – secure, durable, powerful and versatile. It allows Billabong to drive branding programs for its multiple brands, highlight in-store specials with targeted ads, and securely accept all currently existing forms of payment. After evaluating options from the leading manufacturers, a decision was made to implement iSC Touch 250 due to its proven performance and dependability. Since rolling out iSC Touch 250 solution in late 2012, our PIN-pad terminal issues have dropped by 99%.” (Billabong Creates the Perfect In-Store Customer Checkout Experience with Ingenico’s Secure Payment Devices, 2013) Below, is a simple graph in order to exemplify the importance of innovative strategy implantation of Billabong in France.
  • 13. Billabong-France 13 How does this bring my Billabong business strategy closer to my goal? Innovation of business ideas and ethics come into play. Generally there is no other goal than success and profit. However in my circumstance, Billabong has proven the success of prior business strategies all over the world. Billabongs current business strategy is still successful, but has decreased in the past five years. The addition of these possible subsidiaries given the approval of the Billabong board of holders will allow the company to increase the success in France from a different approach. These additions would bring the surf community in France, a little more together. New strategies involving products, merchandising, and locations would further the strategy in creating more awareness and brand loyalty. Subsidiary innovation for Billabong is both progressive and ethically effective.
  • 14. Billabong-France 14 Fundraising & Event Integration: The purpose and goal for fundraising/event integrations is to broaden the spectrum of Billabong-France. In the past and currently, Billabong International is involved with many organizations that operate on a broad scale. This integration strategy has the purpose to use Billabong’s mission and support localism in France. These fundraisers and events will promote well-being for all French regional demographics. This will bring the local French culture together, allowing the population to be a part of something more. It is imperative and crucial to partner with Surfrider Foundation which is the grandfather of surf related foundations supporting beach and saltwater preservations. “Founded in 1984 by a group of visionary surfers in Malibu, California, the Surfrider Foundation's mission is "the protection and enjoyment of oceans, waves, and beaches through a powerful activist network," It now shepherds more than 50,000 members and 90 chapters worldwide. The Surfrider Foundation Europe was founded in Biarritz in 1990, and the 70 employees of the French chapter, who had been working in various locations, including garages, were sorely in need of a unified place to conduct their business.”(Nayar, 2014) My goal with this foundation is to partner with them on many events incorporating all present and new locations. At the heart of surfing and lifestyle wellness, it is important for Billabong to incorporate the importance to keep the ocean and land healthy. As innovative strategies are applied, Billabong will have the opportunity to continue innovative networking within local French regions. The market and culture for craft breweries and beer is an untapped sector that can be used in many different areas of business if applied correctly. “So it's interesting to note that there's a craft beer boomlet happening in franchising.
  • 15. Billabong-France 15 Despite the differences between the beer industry and the franchise world, the industries have turned out to be a good match, reinforcing a long-held truth; with beer, anything is possible.”(DALEY, 2013) The integration of craft breweries and craft beer lounges as a subsidiary partner/affiliate of Billabong will be executed by hosting Billabong fundraisers and events. For example Billabong will use a French brewery to host a Surfrider event while creating awareness to Surfrider, Billabong, and local businesses. This is a simple task that can create huge waves for networking and building local infrastructure. In France, there are four particular crafter breweries & lounges that will be presented with this task and opportunity. La Tireuse is a craft beer lounge while Oldarki is a brewery located near the French coastline closest to Biarritz. Lestrois8 & Cave à Bulles are both located in the heart of Paris. These locations could strategically be used to create awareness and host events all of which are supported by Billabong. Billabong affiliates or current subsidiaries could host these events regionally. As this strategy progresses and has proven successful and effective, more locations will be acquired throughout different regions. Billabong will be able to create a web of networking significantly through fundraising and event hosting. This will restructure the way Billabong-France is valued. There will be an opportunity to Outer Reef & Rhythms. Outer Reef & Rhythms is committed to operating in an environmentally and socially responsible manner to protect the well-being of employees, customers and the community. They strive to operate in compliance with all applicable environmental, health and safety laws and regulations. The organization strongly believes that doing business in an ethical manner today means spreading good vibes for tomorrow and days to come. I plan to incorporate this company as an outlet to fundraising networks and events. The organization is currently located in the Caribbean; however this is an
  • 16. Billabong-France 16 opportunity to incorporate a young successful organization that will spread awareness for well- being. Outer Reef & Rhythms will be integrated into French regions, initially on the coast by Billabong. Billabong will connect the organization with different locations affiliated with Billabong. AmbassadorStructuring Opportunities: How to effectively create a Billabong French ambassador team that will make waves (no pun intended). Since the beginning of surfing industries, there has been a promotional strategy of sponsorship that has proven most effective, for many actions sports. Billabong has leveraged brand ambassadors primarily in surfing, snowboarding, and wakeboarding allowing young and veteran athletes to create a career from actions sport. A sponsorship from Billabong means an athlete is a professional team member and promotes the sport of surfing or snowboarding for Billabong. The athletes are provided funding and material in order to successfully promote the brand. There are requirements in being a Billabong ambassador. Generally, a team member promotes mainly through competitions and team apparel events. It is important to remember that many of these professional surfers are completely booked for competitions and demos. However there are many sponsored free surfers that will have more of an opportunity to participate. As an innovative strategy through Billabong, team ambassadors will be used as instruments to bring awareness of Billabong’s mission in the French region. There are currently 37 team members for surfing consisting of young surfers and veteran surfers. The applied restructuring strategy will use these ambassadors to get involved within the French region in order to bring more awareness and popularity to France. These occurrences will be monthly is in order to frequently bring awareness to French regions. Considering there are not many French
  • 17. Billabong-France 17 team members, more Billabong team members will have the opportunity to be involved in France. The main purpose of this strategy is to get the professional Billabong team members to interact and show loyalty towards French Billabong subsidiaries as well as showing concern for self/world preservations. Ambassador Integration Possibilities:  Sustainable Events o Local sustainable awareness events  Billabong team members will promote/assist  Accomplishments  Showing awareness and importance for environmental preservation  Water Filtration o Education of clean water devices & awareness  Billabong team members will promote/assist  Accomplishments  Education of demand/importance for clean water filtrations  Surf Camps/Lessons o Billabong will host surf camps in France  Billabong team members will teach/educate  Accomplishments  Creating a safe outlet for young kids in city and suburban areas  Organic Materials & Food o Promoting the importance of organic food/materials in France  Billabong team members will assist in promotion/education  Accomplishments  Education/awareness of chemical-free living & eating  Clean Energy o Promoting start-up clean energy companies in France  Billabong team will promote/educate clean energy solutions & strategies  Accomplishments  Clean energy integrations in French regions  Beach/Ocean Preservation o Promoting the preservations of beaches & oceans in France  Billabong team will promote/participate in cleaning of beaches & ocean awareness  Accomplishments  Awareness & action of ocean/beach preservations  Clean Transportation o Introducing Bike Sharing coast of France  Billabong team will assist in promoting Bike Sharing &  Accomplishments  Successful release of clean transportation on coast of France  Craft Brewery Events
  • 18. Billabong-France 18 o Breweries will have the chance to promote local businesses & hold events  Billabong team will assist promotions/events  Accomplishments  Sustaining local businesses Communication Innovation Integration: The implementation of these innovative strategies towards Billabong-France requires a concrete foundation of communication and ethics. Both go hand in hand creating optimal results of successful integrations throughout each subsidiary. Considering the is a wide range of new subsidiary and fundraising/event opportunities, each business decision needs to be addressed appropriately with strategic communication. Ethical business decisions are a core discipline that must be re-established in the framework of Billabong-France. Regardless of present success of communication at Billabong International, there will be a new proposed communication strategy to incorporate into Billabong-France. This transformation will be more of a collaboration of both old and new communication tools. This strategy will incorporate a framework of top-down core disciplines (CEO, High management  Low management, retail customer representatives). Following is a condensed framework of a communication networking strategy. This strategy implements transparency throughout different sectors of individuals and group, taking into account individual’s preferences and privacy. Transparency will allow Billabong-France to be communication-friendly with limited boundaries. It puts all sectors of employees and representatives on an equal playing field allowing each to really become involved and invest in Billabong-France. This ethical communication network is explained by (KCHAICH EP CHEDLI, 2014).
  • 19. Billabong-France 19  Supervisors  Access to all resources o Manage business  Since it will be in contact with people who have knowledge and various experiences o Motivation  Moral support or emotional support from the people who make up the network o Material Resources  Form of funding, equipment etc.  Interaction between members of the network causes the movement o Multiple relationships within the network helps both, the development of individual creativity & development of innovation  Individual Network o Structure of the network  Number of individuals with whom the leader maintains relations  The way those people are closely linked together in a network; a network where everyone knows at a high density (total transparency) o Contents of the links  Strength of information  When the ego maintains a strong, reciprocal and eventful relation with the alter, the link is called intense  Intensity can be measured based on the frequency and duration of the interactions o Attributes of alters  Demographic, organizational, professional, technical characteristic  Measure which network of a player can connect to other actors on the demographic, technical, geographical plan
  • 20. Billabong-France 20  Information o Collecting information  Information allows the supervisor to access missing resources within the company  Gaining help to locate them due to the people who form network o Employees, partners, consultants, etc. within network of supervisors  Most important sources to the business  Major source of information  Motivation o Motivation comes essentially from high than low  motivation can be an obstacle to the supervisor making business decisions o Motivation allows promotion of confidence in direction of actions and justify the business decisions
  • 21. Billabong-France 21 This broad outline followed by graphing illustrations allows there to be a viewable proposal of a redefining networking and communication strategy. Billabong-France will incorporate effective communication tools in order to accomplish daily tasks, while networking, to maximum potential task and goals. This will be established and introduced through a communication tool that will allow all members of Billabong to be able to communicate, share knowledge and frequently asked questions. This innovation will create transparency, equalization, productivity, and trust throughout sectors of Billabong-France. Conclusion: “Limit the analysis to innovation in large organizations that typically recognize the importance of innovation, but struggle with development and commercialization of radically innovative products. Within these firms, routines, structures, and cultural norms often create obstacles to innovation, rendering the question of what factors govern team radical innovation pertinent.”(ALEXANDER & VAN KNIPPENBERG, 2014) Innovation was the backbone of these new strategies. The future of Billabong is uncertain, but obstacles and goals remain. It is my mission and goal to successfully integrate different regions of France in order to innovative surf industry opportunities. There is no reason why Billabong should be refrained from venturing outside the surf industry box with the intent to expose new opportunities for the surf industry. Concluded are proposed strategies of Billabong-France strategic and innovative implementations of opportunity analysis, subsidiary integrations, fundraising & event integrations, ambassador structuring opportunities, and communication innovation integration. If
  • 22. Billabong-France 22 accepted and applied towards the current business strategy of Billabong-France, the outcome will prove successful integration of local businesses, fundraising & events. These strategies are innovative and will produce a new opportunity to expand and increase the potential for Billabong in France. My career goal will be to erase the notion of boundaries, while introducing valuable outlets to expand while incorporating core disciplines, ethics & morality, personal wellness, sustainability, and most importantly imagination towards my passion for the surfing industry.
  • 23. Billabong-France 23 REFERENCES: • Billabong International Ltd. SWOT Analysis. (2014). Billabong International, Ltd. SWOT Analysis, 1-7. • French Indie Brands Turn To Retail. (2014). WWD: Women's Wear Daily, 208(114), 2b-1 • Tran, K. L. (2008). ACTION SPORTS FIRMS MARCH FASHION-FORWARD. WWD: Women's Wear Daily, 195(53), 13 • Tran, K. L. (2008). Oxbow Launching Action Sports In U.S. With French Twist. WWD: Women's Wear Daily, 196(64), 26. • BĂLĂȘESCU, M. (2013). THE INFLUENCE OF INNOVATIONS AND TECHNOLOGY ON THE FUTURE OF RETAIL. Bulletin Of The Transilvania University Of Brasov. Series V: Economic Sciences, 6(2), 9-14. • Billabong Creates the Perfect In- Store Customer Checkout Experience with Ingenico’s Secure Payment Devices. (2013, March 6). Retrieved April 1, 2015, from http://ingenico.us/wp- content/uploads/2013/02/Billabong.p df • THE POWER OF POINT OF SALE MATERIALS. (2005). Off-Road Business, (8), 42-44. • BILLABONG PUTS ITS ORDERS IN PLACE. (2013). MHD Supply Chain Solutions, 43(4), 32-33. • Nayar, J. (2014). Surfrider foundation Europe. Contract, 55(4), 118-121. • DALEY, J. (2013). Turning on the taps. Entrepreneur, 41(9), 92-99. • Dell, K. (2008). Bike-Sharing Gets Smart. Time, 171(25), 113-115 • ALEXANDER, L., & VAN KNIPPENBERG, D. (2014). TEAMS IN PURSUIT OF RADICAL INNOVATION: A GOAL ORIENTATION PERSPECTIVE. Academy Of Management Review, 39(4), 423- 438. doi:10.5465/amr.2012.0044 • KCHAICH EP CHEDLI, M. (2014). OBTAINED RESOURCES THROUGH INDIVIDUAL NETWORKING INSIDE THE ORGANIZATION, CREATIVITY OF THE SUPERVISOR AND INNOVATION. Economics, Management & Financial Markets, 9(4), 376-394.