Le Chateau
au
Table of Contents
Organizational Introduction
Company Overview
Positioning
Financial Performance
External Analysis
Porter’s Five Forces Analysis
Internal Analysis
Resources
Capabilities
Strategic Analysis
Business-Level Strategy
Corporate-Level Strategy
Objectives & Alternative Courses of Action
#1: Alter Manufacturing Process
#2: Strategic Alliance
#3: Global Expansion #4: Acquisition
Recommendation
Works Cited
Appendix
Interview
Organizational Introduction
Company Overview Le Chateau is a leading Canadian specialty retailer that offers contemporary fashion apparel, accessories and footwear. Founded in 1959 by Hershel Segal, the retailer was originally named “Le Chateau Men’s Wear”. The name was changed in 1962 to “Le Chateau”, when the product offering grew to include women’s clothing as well. Hershel and Jane Segal own a majority stake in the company, where through voting they control 76.4% of the company (Company Fillings, 2011). At first, Le Chateau’s target market and positioning were unclear; however, the company has evolved into a clothing retailer that attracts fashion-forward, style-conscious women and men. Through their quick identification of and response to fashion trends, Le Chateau has successfully built a strong and reputable brand. Committed to research, design and product development, they take pride in their vertically integrated operations, for approximately 40% of the apparel is manufactured in its own Canadian production facilities (Annual Report, 2010). There are currently 238 stores in North America; 236 across Canada and two located in New York City. In addition, there are nine Le Chateau locations in the Middle East. As of 2011, the majority of their stores are located in Ontario, a total of 77, with Quebec close behind, 70 stores (Marketline, 2011). Since 2008, the in-store sales have been steadily decreasing (Annual Report 2010). At the year-end of 2011, Le Chateau’s sales amounted to $319.04
Table of Contents
Organizational Introduction
Company Overview
Positioning
Financial Performance
External Analysis
Porter’s Five Forces Analysis
Internal Analysis
Resources
Capabilities
Strategic Analysis
Business-Level Strategy
Corporate-Level Strategy
Objectives & Alternative Courses of Action
#1: Alter Manufacturing Process
#2: Strategic Alliance
#3: Global Expansion #4: Acquisition
Recommendation
Works Cited
Appendix
Interview
Organizational Introduction
Company Overview Le Chateau is a leading Canadian specialty retailer that offers contemporary fashion apparel, accessories and footwear. Founded in 1959 by Hershel Segal, the retailer was originally named “Le Chateau Men’s Wear”. The name was changed in 1962 to “Le Chateau”, when the product offering grew to include women’s clothing as well. Hershel and Jane Segal own a majority stake in the company, where through voting they control 76.4% of the company (Company Fillings, 2011). At first, Le Chateau’s target market and positioning were unclear; however, the company has evolved into a clothing retailer that attracts fashion-forward, style-conscious women and men. Through their quick identification of and response to fashion trends, Le Chateau has successfully built a strong and reputable brand. Committed to research, design and product development, they take pride in their vertically integrated operations, for approximately 40% of the apparel is manufactured in its own Canadian production facilities (Annual Report, 2010). There are currently 238 stores in North America; 236 across Canada and two located in New York City. In addition, there are nine Le Chateau locations in the Middle East. As of 2011, the majority of their stores are located in Ontario, a total of 77, with Quebec close behind, 70 stores (Marketline, 2011). Since 2008, the in-store sales have been steadily decreasing (Annual Report 2010). At the year-end of 2011, Le Chateau’s sales amounted to $319.04
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