Kosta boda

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Kosta Boda
“L’art du verre ou l’usage du verre dans l’art” Fadat, 2008
Current situation analysis
Kosta Boda, a Swedish glassmaker, wants to penetrate the French market of glasswork. In order to understand the current situation of the glasswork market, we will first do a SWOT analysis with the external environment and then the internal environment of Kosta Boda. Then we will do a Porteranalysis of the market…
SWOT analysis
External analysis
Opportunities | Threats |
Despite the economic crisis, the luxury sector remains strong because of the values of well-being and dream. Moreover, the analysis of the past crisis illustrates that the luxury industry has been one of the strongest facing economic difficulties (Comité Colbert, 2008) | New competitors can enter quickly which showsthe “big opening of the sector” : creativity as a key success factor (Comité Colbert, 2008) |
High revenues increased from 2004 and 2007 and the inequalities upwards (Solard, 2010) | Concerning the “art-de-la-table”, Asian competitors are growing (Ministère de l'Économie, des Finances et de l'Emploi, 2007) |
Luxury market is growing with an annual growth more than 8% between 2005 and 2008(Comité Colbert, 2008) | Household budgets are decreasing for the “art-de-la-table” (Ministère de l'Économie, des Finances et de l'Emploi, 2007) |
Consumers want traditional and modern products (Ministère de l'Économie, des Finances et de l'Emploi, 2007) | French glass companies are going to decrease their price (Ministère de l'Économie, des Finances et de l'Emploi, 2007) |
Companies of the sectorhave a challenge: modernization, creation and innovation for the products (Ministère de l'Économie, des Finances et de l'Emploi, 2007) | Lack of competitiveness from the companies du to the handmade work (Ministère de l'Économie, des Finances et de l'Emploi, 2007) |
| Lack of dynamism from the different companies du to the low budget of the household for the art-de-la-table (Ministère del'Économie, des Finances et de l'Emploi, 2007) |
| Same communication plan for the companies of the sector (Ministère de l'Économie, des Finances et de l'Emploi, 2007) |
The most important opportunities are the luxury sector, which is always growing and the high revenues, which are growing as well.
The most important threat is the competition, which is really important in France with brands likeBaccarat.
Internal analysis
Strengths | Weaknesses |
Largest glassworks group in the Nordic countries | Products are manufactured in Sweden, For the export, there are supplementary costs and risks of damages |
High quality products | Lack of French market knowledge |
Extensive tourism and event operations | French competitors with a good reputation |
Own sales companies, agents anddistributors | |
Kosta Boda is involved in several sectors: home, furnishings and gifts for example | |
Important capacity of innovation | |
Technical savoir-faire | |
Good image and notoriety in Sweden and abroad | |
Highly qualified designers | |
ISO certified | |
Environmental work | |
The main strengh of Kosta Boda is its high quality and handmade products. And the mainweakness is the lack of information about the French market, which can be a real difficulty.
Regarding this SWOT analysis, we have identified the target market, which is the luxury glass art market.
Porter 5 forces

Figure 1: Porter 5 forces
Source: Porter, M. 1979, 'How competitive forces shape strategy', Harvard business review, March/April.
Industry competitors
The industry of glasswork inFrench is composed of many companies (Baccarat, Swarovski, Vera Wang). But on the market segment we have chosen for Kosta Boda they are different. The competitors are the artists like painters, designers or sculptors. The competitive advantage of each competitor is the designers they have. So we can say that the rivalry among the firms is quite important.
Potential entrants
As we said in the...