Development of inputs to a strategic new departure and an assessment of the underlying strategic capabilities for entering the perfumery market in Germany for the French beauty brand MARIA GALLAND PARIS

Abstract

Maria Galland develops and sells professional skincare products to cosmetics clinics in Germany, faces challenges in performance due to declining returns from its distribution channel, wishes to enter a new market/channel; the perfumery retail market. This study sought to develop inputs for this strategic new departure by identifying…

1) …expectations and requirements of the German perfumery industry, 2) …Maria Galland’s strategic competitive advantage and vulnerabilities, 3) …and by assessing Maria Galland’s underlying strategic capabilities.

A single case-study research strategy and qualitative research approach was used. The research approach was influenced by the assumptions associated with the research philosophies of interpretivism and social constructivism. Fourteen interviews were conducted, and complemented by observations, artefacts, documents, and informal discussions. A conceptual framework, incorporating concepts from external environmental analysis, strategy content, business models, and resource and capability analysis was developed from the literature. Nine findings are presented referring to the source, rationale, related literature, counter-rationale, and implications for the research objectives. The results show that traditional retail perfumery faces threats from Online-stores. Those perfumeries depend on skilled sales staff and high bargaining power against supplying beauty brands like MARIA GALLAND. Maria Galland’s expertise in facial treatments, a high service-level and a strong personal relationship can potentially create value for perfumeries and can, therefore, be a source of competitive advantage for the company. A vulnerability for MARIA GALLAND PARIS is its low visibility and an average product innovation level. Maria Galland’s expertise in treatment products and processes can be considered as strategic capability which is only partly exploited. A low financial capacity results in a strategic disadvantage and forces Maria Galland to consider a rule-braker-strategy. The ability to create personal relationships is not rare however the size of the company tends to be a capability for further exploitation. Limitations of the study are the limited scope and unique character of the case and the limited extent of engagement possible within the confines of time. Further research related to a more in-depth external environmental assessment, as well as a more prolonged assessment of internal issues such as innovation, resource allocation, and visibility audit.