1. Anna Taktikou Apostolos Koumpotis Léa Meunier
Business Report

2. Mango : Overview
• Founded in 1984 in Barcelona, Spain by brothers Andic
• Internationally established fast-fashion multinational which designs, manufactures and markets
women’s, men’s and children fashion : Mango – Mango Man – Mango Kids – Violeta by Mango
• Currently: 2700 points of sales in 108 countries, worldwide
• Over 15000 employees, including 2237 working at the Hangar Design Center and Mango’s
headquarters in Barcelona
• 8 departments within the Central Offices: Image and advertising, Property management,
Expansion, Production control and Stores distribution, Store architecture and Interior design,
Logistics, Administration and IT systems.

3. Organizational Structure
Chairman:
Isak Andic
Executive Vice Chairman:
Jonhatan Andic
Executive Vice Chairman:
Daniel Lopez Garcia

4. Key Data (2014)

5. PESTEL
An analysis of the external environment for Mango Greece (9
stores) with an opening in Europe.

6. Political environment
• Political stability in Europe: favorable environment
• Low level of state intervention in Greece and Europe
• Taxation

7. Economic Environment
• Europe and Greece: difficulties with economical crisis which reduced
economic growth, consumers economic power, raised unemployment
• Strong impact : fashion clothing is an elastic product
• Consumption expenditure of households in Greece on clothing (2013): 3.281
million euros

8. Source: Statista, Eurostat, 2016

9. Social Environment
• Global and local social environment is a positive base for the industry:
• Culture, normes, lifestyle: consumerism, importance of appearance
• Demographics: growing population in Europe and Greece
• Demand: relatively steady demand despite economic difficulties

10. Technological environment
• Technological advances have allowed several booms in the industry through:
• On-line shopping: ever growing, all clothes retailers now have websites and
online stores
• Social media play a more and more important role for businesses

11. Environmental Issues
• Public pressure for a more sustainable fashion industry: opportunity to
differenciate from competitors
• Tendency for improved treatment of the resources
• New trend towards « green » and recycled fabrics
• Responsible business strategies on the rise

12. Legal environment
• Greek and European laws and regulations
• Consumer law
• Safety law

13. PORTER ANALYSIS

14. PORTER Analysis
Extent of
Rivalry
between
Competitors
Threat of
Substitutes
Threat of
Entry
Bargaining
Power of
Buyers
Bargaining
Power of
Suppliers
Very Low
Moderate to Low
Moderate
Low to Moderate
High

15. Threat of Substitutes
Low:
• No Substitution of the product.
• Substitution of the business model as a retail chain with E-commerce. Mango
has launched a website and online store.

16. Threat of Entry
Medium to Low
• Large market
• Mango is already an established company
• Necessity to stay performant to stay active on the market

17. Bargaining power of buyers
Moderate
• Large amount of customers on the market
• Mango is subject to customer’s price sensitivity because it has not managed
to create a strong brand image

18. Bargaining power of suppliers
Low to moderate
• Difficulty to change suppliers without disrupting the production
• Low uniqueness of materials so suppliers are interchangeable

19. Extent of Rivalry between Competitors
High to Very High
• High numbers of established competitors
• Difficulty to attract new customers because they are already attached to other
brands
• High costs for advertising and difficulty to stand out of the large pool of competitors
• 3 main competitive advantages to be seeked in the sector: brand image, quality,
price

20. SWOT

21. SWOT analysis
Strengths
• Strong brand presence: 2,741 stores in 109 countries
worldwide and at prime locations
• Unique product line
• Continuous staff training
• High growth rate
• Biggest design centre in Europe (El Hangar Design Centre)
• 100% family owned
Weaknesses
• Weak brand image
• Controversial accusations over product design
• Weaker presence in social media compared to
competitors
• Major part of revenues are from the apparel only and
not from other product line
Opportunities
• Further development of social media and online
• New lines of products and services
• Expansion and investments in African, Asian and American
markets
Threats
• Economic crisis
• Competitors’ better bargaining power of suppliers
• Low brand loyalty
• Many new designers

22. Competitive Strategy
Analysis of the competitive strategy of Mango, Greece

23. Current competitive strategy of the Company
• Differentiation strategy:
-Strong focus on the target market: Panellas* “What differentiates Mango from its competition is
that it has done a very good job of identifying its core business”
-Integration of logistics for better control over speed and quality
-Outsourcing of manufacturing to keep strong efficiency on design and marketing
-Announced in 2012 a 20% price reduction to adapt to the new economic reality
- Mango’s own IT team made up of more than 200 people (engineers, computer scientists, analysts,
etc.)
-Brand diversification : Mango has launched stand alone brands for men (MANGO MAN), kids and
babies (MANGO KIDS), accessories (MANGO TOUCH) and plus sizes (VIOLETA by MANGO) as well as
in store lines such as Mango Intimates and Sports line.
-Communication focus : Campaigns, Fashion Shows, Collaborations with celebrities
*secretary general of the Esade business school

24. Suggestions for a more efficient Competitive
Strategy
• Benchmarking : comparing business processes in terms of best practices
• Faster distribution→ More often the merchandise on display→ Frequency of
customer visits increased
• Creating trends, not just imitating → Forecasting
• Limit stock quantities→ The customers distinguish themselves-encouraged
not to wait, but buy now→ scarcity and exclusiveness
• Adaptability

25. Business Strategy

26. Current business strategy of Mango
• Fast fashion: affordable prices, 70% of basic clothes and around 30% of "fashion" products
• Target 30% of the passersby within their actual market
• Equality and Ethics
• Emphasis on store locations
• Emphasis on advertising and promotion
• Development of the line of product: started with women fashion, developed towards men fashion and now kids fashion
• So far, no plans to issue shares
• Franchising Strategy : allows Mango to achieve worldwide presence without baring the costs of store ownership.

27. Role of the departments in Mango
•Target market
•Define trends
•Select material
Design
•Outsourced to
3rd party
businesses
Production •Advertising
•Social network
•Catalogue
Marketing
•Maintenance
•Transport
•Stock
Distribution •After sales
Customer
Service

28. Suggestions for a better business strategy
• Expansion
• Balanced mix of direct and 3rd party distribution
• Adaptability
• Innovation
• JIT production( Just in Time) → Low cost manufacturing and distribution networks
• In house manufacturing → Vertical Integration

29. Room for improvement
Product Management – Development
-Designs, Materials, Fashion items, Feedback of sales
Product Distribution
-Short and more frequent lead time, restocking with best selling items, Feedback
Supply Chain in comparison with the leaders

30. Sources
• Mango: www.mango.com
• http://www.just-style.com/analysis/greek-apparel-sector-resilient-in-troubled-times_id113746.aspx
• www.statista.com
• https://fashionunited.uk