Competitiveness of France A case study focusing on Columbia Sportswear

1. HEC – Specialised Masters in Project Management « Best in France » Case Study, Supervised by Pr. M. Segalla and M. J. Andersen Competitiveness ofFrance A case study focusingonColumbia Sportswear Presentation by: J. De Montalivet, J. La Brasca, J. Lam, J. Nayrolles, V. Picot,F. Wagner

2. PRESENTATION OUTLINE Presentation ofColumbia Sportswear Attractiveness ofFrance Why Columbia choseFrance France and theFuture

3. PRESENTATION OUTLINE Attractiveness of France Why Columbia chose France France and the Future Presentation ofColumbia Sportswear

4. PRESENTATION OF COLUMBIA COLUMBIA SPORTSWEAR …the strategic choice of France…

5. PRESENTATION OF COLUMBIA History of Columbia 1938 Lanfrom family flees Nazi Germany for the US and creates Columbia Hat Company 1970 The firm is in deep debt 1993 Gert Boyle awarded woman of the year prize 2003 Columbia is one of the leaders of the market.

6. PRESENTATION OF COLUMBIA Columbia in Europe Arrival on the market in 1990 Until 1994, logistics for Europe are located in Holland In 1994, the European Headquarters are transferred to Strasbourg In 2001, decision to locate the European Distribution Centre in Cambrai

7. Sales: 779 M$ Net Income: 88 M$ (11,5%) 1,636 Employees 3 main locations: Europe, Asia, North America Global leader in the design, manufacture, marketing and distribution of active outdoor wear PRESENTATION OF COLUMBIA COLUMBIA in 2003

8. PRESENTATION OUTLINE Presentation of Columbia Sportswear Why Columbia chose France France and the Future Attractiveness ofFrance

9. ATTRACTIVENESS OF FRANCE 1. France is at the heartofthe European market A market of 380 M people EU GDP higher than US and Japan France is the 2d largest market in the EU 2.First-RateInfrastructure 5 000 miles of well maintained highway 20% of EU freight from Paris airports Modern ports and water transportation

10. ATTRACTIVENESS OF FRANCE 3. A Magnetfor International Investments Growth of foreign investment 1 year tax exemption for new firms Paris rated 2d best city for investment A dynamic financial market 4.High Quality Workforce Very high productivity Moderate wages Educated, flexible, multicultural

11. PRESENTATION OUTLINE Presentation of Columbia Sportswear Attractiveness of France France and the Future Why Columbia choseFrance

12. WHY COLUMBIA CHOSE FRANCE Advantages ofFrance(for Columbia) Proximity to European markets Proximity to ports for the reception of goods from Asia Availability,flexibility and competence of work-force The 35H working week

13. WHY COLUMBIA CHOSE FRANCE Disadvantages ofFrance(for Columbia) Reputation of not being business friendly Social climate (strikes) Problems linked to language

14. WHY COLUMBIA CHOSE FRANCE The choice of Strasbourg The Director for Columbia Sportswear in Europe was French The best geographical situation between France and Germany Competent and trilingual employees Possibility of finding people from all over the world BUT, Strasbourg is badly served by transports

15. WHY COLUMBIA CHOSE FRANCE The choice of Cambrai Strategic location for the main markets: The Western part of Europe A logistic key point, with proximity to: commercial port → reception of goods from Asia 2 highways close to important airports The 35h/week: Availability and flexibility of work-force

16. WHY COLUMBIA CHOSE FRANCE The choice of Cambrai Don Dogherty, head of the Cambrai Project: “Even if you have the best product in the world at the most attractive prices, it won’t do any good if you can’t deliver them to your customers. Which is what the new site is all about.”

17. PRESENTATION OUTLINE Presentation of Columbia Sportswear Attractiveness of France Why Columbia chose France France and theFuture

18. FRANCE AND THE FUTURE Be ready for tomorrow Today Future The Focus on logistics Decisive factors of competitiveness for acountry Cost reduction Capacity to react Procurement quality Thinness

19. FRANCE AND THE FUTURE The Focus on logistics infrastructure Level of qualification of the population Legal system Social peace Investment climate

20. FRANCE AND THE FUTURE Mega-trends in the world economy 3 trends changing offer 1. Deregulation and privatisation 2. Concentration on core competences & shareholder value 3. Re-discovery of structure and process organization 4 trends influencing demand • 1. Globalisation of production and economic traffic • 2. Transition to post-industrial society • 3. Growing environmental sensitivity • 4. Immediate reaction to client wishes

21. FRANCE AND THE FUTURE Advantages in France in regards to the future of logistics Growth tendencies Increasing globalisation and dislocation, growing distances Higher demand in quality and thus higher profit for logistic services

22. FRANCE AND THE FUTURE Attractive tax system France will continue to favour foreign Investments One of the least restrictive investments regimes Role of the DATAR: assistance and incentives Reducing tax burdens on companies Favouring employment and entrepreneurship

23. FRANCE AND THE FUTURE A service-oriented economy Importance of the service economy (78% of jobs in the US in 1998) France’s productivity in services = 60,1% Adequate workforce The best quality of life in Europe! Very important from a managerial point of view!

24. Recommendations: Need to launch a compelling communication campaign Need to act with diplomacy in the political sphere Thank you for your attention !!!