Post on 17-Jan-2016
Agenda Group B7 Introduction History of
Beiersdorf Beiersdorf today Strategic Analysis Conclusions Recommendations
& Implications
History BDF today
Strategic Analysis
Summary Recommen-dations
Agenda
The History of BDF 1/2
AgendaBDFtoday
Strategic Analysis
Summary Recommen-dations
1910’s1930’s1880’s 1890’s 1910’s1900’s 1920’s
History
The History of BDF 2/2
Agenda Summary Recommen-dations
BDF today
1940’s 1950’s 1970’s1960’s 1980’s 1990’s
History Strategic Analysis
BDF Today 1/2
HistoryAgenda Recommen-dations
Strategic Analysis
More than 18.000 employees worldwide in …
3 main activities
Cosmed Medical Tesa
68% of sales
16% of sales
16% of sales
SummaryBDFtoday
BDF Today 2/2
Most renowned companies in Germany 2002 2003 Name 1 1 DaimlerChrysler 2 2 BMW 3 3 Porsche 5 4 Siemens 6 5 Volkswagen 0 6 Puma 4 7 SAP 0 8 Bayer 0 8 Beiersdorf 9 10 Deutsche Bank Source: Financial Times
HistoryAgenda Strategic Analysis
Summary
• HQ still in Hamburg, Germany• subsidiaries in more than 120 countries• 75% of sales in Western Europe• 15% of sales in America• 10% of sales “Rest of the World”
BDFtoday
Recommen-dations
75%
15%
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Threats of Substitutes
Bargaining Power of Suppliers
Barriers to Entry
Bargaining Power of Buyers
Rivalry
StrategicAnalysis
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Threats of Substitutes
Bargaining Power of Suppliers
Barriers to Entry
Bargaining Power of Buyers
Rivalry
StrategicAnalysis
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Threats of Substitutes
• Low demand of “organic” and natural products
StrategicAnalysis
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Bargaining Power of Buyers• Supermarkets poor performance in skin care vs other mass marketers
• Implementation of EDI solutions
• Recently possibility of e-Commerce and mass customization turning power to consumers – doubts for future
• e-CRM
StrategicAnalysis
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Barriers to Entry• Large investments in brand building and R&D
• However , threat of entrance ofDermatologists / private brandsSMEs products in a niche target
• Government restrictions
StrategicAnalysis
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Bargaining Power of Suppliers
• Manufacturers pressure for high quality and low cost
• Integration
• e-Procurement
• Increasingly attractive supply alternative to SMEs
StrategicAnalysis
Porter’s 5 Forces Cosmetics Industry
HistoryAgenda Summary Recommen-dations
BDF today
Rivalry• Industry concentration ratio C4 ~ 35%
• Main competitors tend to concentrate the Industry through acquisitions
• SMEs proliferation targeting to niche markets
• Private brands increasing importance during recessions
StrategicAnalysis
Value Chain
HistoryAgenda BDF today
Summary Recommen-dations
ProducingSourcing PackingHandling & Delivering
Procurement, Technology Development, Human Resource, Firm Infrastructure
Servicing
Operation OutboundLogistics
InboundLogistics
Market &Sales Services
Greatest impact on reliability
Greatest influence through brands
Primary Value Chain Activities
Support Activities
StrategicAnalysis
Value Chain (Primary Value Chain Activities)
In-Out bound logisticsIn-Out bound logistics1.1. internal and external integrationinternal and external integration
2.2. standardized internal procedures standardized internal procedures
HistoryAgenda BDF today
Summary Recommen-dations
OperationsOperations
1.1. the automated batch plant the automated batch plant
2.2. the standardized factory control systemthe standardized factory control system
Marketing and SalesMarketing and Sales1.1. the demand of the local market the demand of the local market
2.2. core international and regional brandcore international and regional brand
StrategicAnalysis
HistoryAgenda BDF today
Summary Recommen-dations
Value Chain (Support Activities)
ProcurementProcurement1.1. a company-wide uniform product supplya company-wide uniform product supply
Technology DevelopmentTechnology Development1.1. integrated system by using standardized integrated system by using standardized
processes across Europe processes across Europe
Human Resources ManagementHuman Resources Management1.1. a certain degree of autonomy a certain degree of autonomy
StrategicAnalysis
SWOT Analysis
Fundamental risk management policy
Policy of strong brands Truly international business
with strong growth strategy
HistoryAgendaStrategicAnalysis
Summary Recommen-dations
BDF today
Growth rates „Babies“ & „Men“ Expansion in emerging markets Ageing of baby-boom generation
Geopolitical situation has negative effect on world economies
Private label products Minimal growth in main market
Marginal presence in N-America Business heavily focussed
around Western Europe Success primarly based on
NIVEA
Weaknesses
Threats
Strengths
Opportunities
4+2 Formula for Success
HistoryAgendaStrategicAnalysis
Summary Recommen-dations
BDF today
Str
ate
gy
Execu
tion
Cu
ltu
re
Str
uctu
re
InnovationM&A
4+2 Formula for Success
HistoryAgendaStrategicAnalysis
Summary Recommen-dations
BDF today
Strategy R&D as basis for Innovation + organic growthR&D as basis for Innovation + organic growth Growth in 3 dimensions: new product categories, Growth in 3 dimensions: new product categories,
new countries and market share growthnew countries and market share growth Umbrella brand + leverage potential synergiesUmbrella brand + leverage potential synergies „„Think global, act local“ strategyThink global, act local“ strategy
Structure SCM: e-procurement, production, logisticsSCM: e-procurement, production, logistics Multinational to Transnational structureMultinational to Transnational structure Balance between centralized strategy Balance between centralized strategy
and decentralized entrepreneurshipand decentralized entrepreneurshipS
trate
gy
Str
uctu
re
4+2 Formula for Success
HistoryAgendaStrategicAnalysis
Summary Recommen-dations
BDF today
Culture „„Success has many faces. Over 18,000 in Success has many faces. Over 18,000 in
fact.“fact.“ Fixed salary + variable performance + bonusFixed salary + variable performance + bonus European Dialogue = EWCEuropean Dialogue = EWC
Execution Tools: e-procurement, mySAP PLM,...Tools: e-procurement, mySAP PLM,... Cincinatti: America´s best plantCincinatti: America´s best plant Profitability below average ?Profitability below average ?
Str
ate
gy
Execu
tion
Cu
ltu
re
Str
uctu
re
4+2 Formula for Success
HistoryAgendaStrategicAnalysis
Summary Recommen-dations
BDF today
Innovation 1998,Visage Q10: Sales +85%, market up1998,Visage Q10: Sales +85%, market up ElastoplastElastoplast Spray Bandage + Elastoplast Spray Bandage + Elastoplast
SilverHealing™ SilverHealing™ tesa Holospot®: store info in tapetesa Holospot®: store info in tape
Mergers & Acquisitions Several acquisitions since 1990Several acquisitions since 1990 Enlarge geographical scopeEnlarge geographical scope CEO R. Kunisch: CEO R. Kunisch:
„...focus on organic growth..“„...focus on organic growth..“
Str
ate
gy
Execu
tion
Cu
ltu
re
Str
uctu
re
InnovationM&A
4+2 Formula for Success
HistoryAgendaStrategicAnalysis
Summary Recommen-dations
BDF today
Str
ate
gy
Execu
-ti
on
Cu
ltu
re
Str
uctu
re
InnovationM&A
Summary: Beiersdorf AG
Historically consistent strategyHistorically consistent strategy Porter´s 5 forces: Porter´s 5 forces: Industry RivalryIndustry Rivalry Porter´s Value Chain: Porter´s Value Chain: Marketing & Marketing &
SalesSales SWOT: SWOT: Risk Management Risk Management
„Babies“+“Men“„Babies“+“Men“ 4+2: 4+2: Innovation Strength Innovation Strength
BrandingBranding
-- poor profitability (< poor profitability (< average)average)
HistoryAgenda Summary Recommen-dations
BDF today
Strategic Analysis
Recommendations + Implications
Improve profitability better cost position „Think global, act local“ transnational structure „bottom of the pyramid“ low price, low volume unit „fight brand“ strategy fewer private brands Investment in SME trade up existing brands Use network of affiliates widespread e-Commerce Focus on emerging markets larger growth and less
+ US dependency on W-Europe
HistoryAgendaRecommen-
dationsBDF today
Strategic Analysis
Summary
Questions
HistoryAgendaRecommen-
dationsBDF today
Strategic Analysis
Summary
?