Duque Papetiers Gros: Business Expansion Analysis and Recommendations

Report for Duque Papetiers Gros
1

Table of Contents
1. Introduction..................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................7
Task 4.............................................................................................................................................10
Task 5.............................................................................................................................................12
Task 6.............................................................................................................................................13
Task 7.............................................................................................................................................14
Task 8.............................................................................................................................................15
3. Conclusions................................................................................................................................15
4. References.................................................................................................................................16
2

1. Introduction
Analysing and finding out potential scopes or opportunities for business expansion in local and
global market is necessary for growth of any business. In this report Donald Duque owned a
small family stationery business called DuquePapetiers Gros based in Northern France has
been discussed. For a small family business like DuquePapetiers Gros, it is important to
understand both potential gain and risk of expanding in new market. As this business already
become established in north France and created good image in that market therefore, it is looking
to expand in neighbouring countries market like Germany or Switzerland for higher company
growth. For this reason this report is being made analysing its product and its potential in the
neighbour countries where its expansion can be done, customer base of new market, financial
prospect of the expansion and recommendation.
3

Task 1
2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
According to the MGCC report, the annual turnover of Germany stationary industry is more than
€14.8 billion. Estimation of individual spending on this sector product is €182 annually out of
which €35.2 is spent on writing and drawing material. As Germany is the second largest market
of stationary goods across European Union countries, there is a significant scope of market
development for this company. Duque Papetiers Gros also will get strong competition in this
market from local brand which has good image not only locally but also internationally.
Germany’s local brand is also merging to increase their resource and counter new competitor like
Duque Papetiers Gros. It could be a big challenge for Duque Papetiers Gros for establishing
successful expansion. Wholesaler stationers in Germany is try to enter its retail business. Form of
specialist retailer or brand boutique is a hit concept in this country. This is also another problem
for Duque Papetiers Gros as they till now has not entered retail business of stationary.
Increasing digitalization in Germany as they do not sell computer through which most digital
work is done. The slow economy performance of Germany is not portraying Germany as
lucrative expansion option for this company. Although ecommerce which is a growing industry
in Germany. It can be used as medium to expand in this country which will help the company to
navigate the risk of expanding to Germany market as well as explore its increasing revenue,
turnover and demand in this stationary market ( MGCC Perspectives, 2018).
4

Task 2
2.2 Annual Spending on Writing/Drawing Materials per Capita
Countries
Annual Spending on Writing/Drawing Materials
per Capita
Germany € 35.20
Switzerlan
d € 35.50
AUSTRIA € 35
France € 28.30
Slovenia € 20.40
Italy € 18.60
Hungary € 9.60
Table 1: Annual Spending on Writing/Drawing Materials per Capita of 7 countries
(Source: MGCC Perspectives, 2018)
Germany
Switerland
AUSTRIA
france
Solvenia
Italy
Hungary
€ 0.00
€ 10.00
€ 20.00
€ 30.00
€ 40.00
Annual Spending on
Writing/Drawing Materials
per Capita
Figure 1: Annual Spending on Writing/Drawing Materials per Capita of 7 countries in
graph
(Source: MGCC Perspectives, 2018)
In this report we had analyse the individual consumer spending on writing and drawing materials
of 7 European Union countries including France and Germany. The country which spends the
most on these types of items is Switzerland followed by Germany and Austria. As these are main
5

products of Duque Papetiers Gros; analysis of these items should be done to see which
neighbouring country has most lucrative market in term of consumer spending. The table above
represents the annual spending of 7 countries on writing and drawing materials. The annual
individual spending of Germany, Switzerland and Austria are €35.20, €35.20 and €35
respectively after which fourth highest is France (€28.3). The gap between first 3 countries and
other 4 countries is very wide. As this company is only operating in northern part of France, it
has huge potential of expansion in Switzerland, Germany and Austria. If the company is looking
for established market then Germany, Switzerland and Austria are its options but if it ready to
develop new market then other 3 countries can be an alternative for them(Parker, 2018). As it has
been analysed in the previous part that Germany market is established but will be big risk for
Duque Papetiers Gros for the sluggish economy growth of Germany, mismatch between
company business model and Germany’s stationary industries main business model (wholesaling
vs. Retailing ) and strong competition from its local brand . Therefore, either Duque Papetiers
Gros can explore established market of Switzerland and Austria or develop market of other 3
countries that is Italy, Slovenia and Hungary.
6