JC Decaux in an operation and system analysis context

Résumé du document

JC Decaux elaborates for every new exercise, new strategic objectives. For that, the Group takes care of its guideline. We notice that the strategic policy of JC Decaux turns along 3 main axes, which underline the flexibility of the polar diagram: 1. The development by internal and external growth, 2. The diversification of supply, 3. The purchase or the consolidation of a leader's position on all the markets where the Group is present. This policy led by the Group since 2001 allowed JC Decaux to grow.

Extraits

[...] These repurchase bring a real added value and generate profitable synergies in the activity urban furniture. The external growth Over 5 years (from 1999 till 2005) JCDecaux has done a big numbers of acquisitions: 1999 JCDecaux spread its activities to the Posting big size and in the Advertisement in transport thanks to the repurchase of the pole Havas Média Communication External Advertisement (or pole Future) in June for a lump price of 884,9 million of euros and a turnover estimated at 450 million June 21st of 2000 was signed an act of merge by annexation of companies JC Decaux Italia and Publimetro in the company Future Italy 2001 In 2001, the Group finalized several partnerships or acquisitions, all in Europe and mainly in the sector of the activity Posting big size In January JCDecaux strengthens its participation with a capital of KlettDecaux in Germany and IGPDecaux goes buyer of the totality of the capital of Publiflor in Italy In 2003 the Group strengthened its competitive positions in Germany, first advertising market of Europe, by carrying in its participation in Wall AG and in the United States, by acquiring of Wall USA 2004 In 2004, the Group closed a phase of external growth (less than 15 million of euros of investment) and applies to set up a strategy of internal growth Certain resumption in the acquisitions of JCDecaux, with the repurchase of MediaNation, MPI, both key figures of the communication in transport in China, and Texon (urban furniture in Hong-Kong). [...]

[...] Layout is often the first thing most of us would first notice on enterting an operation because it governs its appearance. I also determines the way in which transformed resources the materials, information and customers flow through the operation” (Nigel Slack, Stuart Chambers and Robert Johnston, 1998) The urban furniture General presentation Number 1 in the world of the sector, JCDecaux supplies in the cities some furnitures and maintains them free of charge, in exchange for the right to market advertising sites. [...]

[...] The capacity strategy adopted definition of the capacity of an operation is the maximum level of value added activity over a period of time that the process can achieve under normal operating conditions” (Nigel Slack, Stuart Chambers and Robert Johnston, 1998) The internal growth The internal growth represents the creation by JCDecaux of new capacities by means of the replacement of equipment and the answers to tender invitations. The Group has, on average, invests approximately 200 million a year, in the internal growth. We notice that the part of the investments for the urban furniture is sharply superior to those of the other DSA. The distribution of the investments for the internal growth is similar to the distribution of the EBITDA generated by every DSA. [...]

[...] [ Photo: JCDecaux limited company] A peripheral activity, Artvertising The activity Artvertising is not considered as a DSA by the Group, but more as a peripheral, emergent, creative and very segmented activity. Inventor of the tube "neon", Georges Claude created in 1912 the first brilliant advertisement in Paris. JCDecaux Artvertising offers more than 150 places in the world and focuses on 2 professions: instant canvases and brilliant advertisements. [Photo: JCDecaux Artvertising] Instant canvases bet on the nearness, the emergent sizes and the places with strong impact near the Parisian peripheral and the shopping districts. [...]

[...] For that purpose, we have, among others, one tools: The matrix of Porter Dominion by the costs Global Segment Dominion by the differentiation JCDecaux If we refer to the model of success of the Group, we notice that advantages were developed for every DSA. Besides those aforementioned, it is necessary to add the international network and the possibility to implement a campaign multi-support. The Group communicates at no time on the price. On the other hand, it advances the creative know-how of the designers, the equivalence of products with the respect for the nature, the recycling of the various used materials . We can thus assert that JCDecaux applies a strategy of differentiation. [...]