internal and external analysis about ARTES PESTEL analysis 5 forces of poeter analysis SWOT analysis

1. Presented by khouluod ben hamouda

2. Who’s ARTES Group?
• ARTES Group is a Tunisian family-owned group of companies involved
in vehicles distribution, spare parts, electronics and real estate. The
parent company, ARTES SA, is the unique distributor of the Renault
and the Dacia brands in the Tunisian market. The group is also the
sole distributor of Nissan through its subsidiary ADEV.

3. • ARTES SA was founded in 1997 by Mzabi family after its takeover of
Renault Tunisie, a company present in Tunisia for fifty years under
french ownership and rules. Along side with the distribution of
Renault cars, the business of ARTES SA has been enlarged throughout
the years to encompass spare parts distribution, repairs and Dacia
cars distribution. The company has built a comprehensive network
including 26 representatives and repair shops across Tunisia.

4. ARTES SA shareholding structure as of June 2014
Sadok Mzabi
22%
Free Float
18%
Abu Dhabi Fund for
Development
9%
Mzoughi Mzabi
21%
Moncef Mzabi
19%
IIB Bahrain
11%

5. Functions
• Marketing department
• administration and finance department
• Human resources department
• service department after sale
• branch of general management

6. Key figures
• Sales reached : 110 million Euros.
• A net profit of : 13 million Euros.
• market share: 20%
• employees : 200
• customers (2013): 7500
• CEO : Mr Moncef Mzabi

7. SUBSIDIARIES
• ADEV: Automotive Development: Import and Sale of Nissan Vehicles,
Parts and Service
• ARTEGROS: Automobile Tunisian Network and Wholesale: import and
wholesale of Renault and Nissan spare parts
• ARTESSA: Distribution of Dacia and Renault
• AUTRONIC: jointly created with Johnson Control and specialized in
the manufacture and marketing of automotive electronic equipment
for export

8. Renault models line-up

9. Supermini
Small family cars
Sports Utility Vehicles (SUV)

10. Dacia models line-up

11. Supermini
Sports Utility Vehicles (SUV)

12. Multi Purpose Vehicles (MPV)

13. Nissan models line-up

14. Supermini
SUV
off-road vehicles

15. Tunisia’s vehicles market
• In Tunisia, there are two authorized ways to acquire new vehicles:
- acquisition via authorized agents based in Tunisia
- acquisition, by Tunisian living abroad who return definitively to their
homeland, of vehicles which are brought back with them duty free..

16. • In Tunisia, consumption tax is particularly high for large-engine
capacity vehicles with rates reaching 277% for gasoline-fueled
engines and 360% for diesel fueled engines.
• For vehicles imported under the authorized dealerships regime,
authorities have reduced these rates to 67% and to 88% respectively.
The rationale behind such measure is to make prices of legally
imported vehicles more competitive given that luxury cars enter
Tunisia through the parallel market and are available for sale at much
lower prices than those of vehicles distributed by official car
dealerships.

17. • New vehicles imported by authorized dealers totaled 53,36 units in
2014 (38,21 PC and 15,15 commercial use vehicles).
• The number of registrations of vehicles under the FCR regime
was twenty-eight thousand in the same year. The French brand Citroen
led the market (FCR excluded) with a 10.6% share and 5,67 vehicles
sold, outpacing Volkswagen, Peugeot and Renault with 9.4%, 9.3% and
8.7% market shares respectively.
 This performance highlights the preference of Tunisian consumers of
European cars which had historically a strong presence in the Tunisian
auto market.

18. the government sold its stake in Ennakl (Volkswagen, Audi, Seat, Porsche), Stafim
(Peugeot) and City Cars (Kia) through national tenders, while keeping in its portfolio
Alpha Ford (Ford) and Alpha Hyundai (Hyundai).
 The analysis of post-revolution market shares by brand shows quasi-stagnation for
Citroen and Kia, fast-growing penetration for Asian brands Isuzu, Hyundai and Toyota
in the detriment of European brands Volkswagen, Renault and Peugeot which saw a
significant decline. Brands which experienced moderate decline during the same
period were Fiat and Ford
Revolution

19. social
-instability
-Corruption
indicators
-conflicts
-Rate of
inflation is
high
-currency
exchange rate
-finance law
2018( VAT
increase)
-purchasing
power of
households is
low
-trend towards
innovative
products
-tendency to use
connected
objects
-loss of
consumer
confidence in
the big names of
the automotive
industry
(cheating to
meet the
requirements)
-Development of
new
technologies,
hybrid cars,
electric cars,
connected cars
-Security
standards
-Pollution
standards
- Regulation of
speed
-Regulation on the
quality of fuels
-Regulation on the
issuance of motor
vehicles
-Limit of global
warming

21. Bargaining power of suppliers
(Middle)
• the distribution of ARTES group of three brands emerging from the
Renault-Nissan partnership make it largely exposed to price and
marketing policies of these brands.
• ARTES SA has a ten-year non exclusive distribution license attributed
by Renault France and has no warranty to extend the use of this
license for additional periods or to see other competitors benefiting
from the same license.
• ARTES group has a good track record of sales in Tunisia and has been
always the unique distributor of Renault, Dacia and Nissan brands in
Tunisia.

22. Bargaining power of customers
(Low)
• Prices are revised taking into account purchase prices, FX rates and a
fixed margin for the dealership company, independently from the
demand for vehicles in the Tunisian market.

23. Threat of new entrants
(Middle)
• The good sales performance of new entrants like Kia and Hyundai
which offered very competitive models in terms of technology, quality
and price has significantly changed the automotive market in Tunisia
which still present a room for growth especially in the low cost and
SUV sub-segments.

24. Threat of substitute products
(Low)
• The road infrastructure has been developed and modernized in
recent years, but not enough to resolve high traffic congestion in
certain hours of the day.
• The proliferation of interchanges and roads nationwide, public
transport services still suffer from the lack of an adequate
infrastructure and a limited fleet (with the use of metro being limited
to few cities in the capital Tunis). Ecological trends in Europe favoring
the use of bicycles have not been spread out in Tunisia.

25. Competitive rivalry within the industry
( H i g h )
• In 2014, the first ten brands represented 74% of new vehicles sales
with Citroen topping sales (market share 10.6%). The brands ranked
from the second to the fifth position; respectively Volkswagen,
Peugeot, Renault and Kia have been constantly alternating with each
other to lead sales in the four recent years and are well-positioned to
maintain the same level of performance backed by good financial
structure and brand image.

27. Strengths
• A diversified portfolio made up of recognized brands, with strong
historical market shares for the main brand Renault
• Strong brand image and well-reputed founders
• A quite comfortable cash position
• A large representatives’ network
• Large and modern show room
• Availability and affordability of spare parts
• Vertical integration of retail spare parts and after-sale activities

28. • Opportunity cost as cash excess is not reinvested to develop new
businesses
Weaknesses

29. Threats:
• -Continuing economic instability in Tunisia, leading authorities to
maintain their close monitoring of vehicles’ imports and to conserve
high level of taxation
• New measures in favor of vehicles imports under the FCR regime has
been introduced by the 2015 Finance Law

30. • -Market liberalization –
• - A new showroom dedicated to Nissan will be opened by ADEV
Opportunities