Going for growth
A Dixons Group case study

Page 1: Introduction

Going for profitable growth is nothing new for Dixons Group plc. The company began in 1937 in a modest way in portrait photography. Today, it is a leading retailer of a wide range of consumer electrical goods. Its UK brands include Dixons, Currys, PC World and The Link. Dixons Group plc is the UK’s leading retailer of electrical and electronic products for the home. Its core products include...
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Page 2: Growing the UK market

Dixons is good at forecasting 'Where is consumer spending likely to head next, and why?' It recognises that change is inevitable, and anticipates it. Portrait photography flourished during the Second World War, but declined after 1945. Dixons foresaw where consumer tastes would move: to DIY photography. By the early 1950s, Dixons led the way in promoting and selling photographic...
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Page 3: Entering continental Europe

Dixons' objective is constant – profitable growth. By acquiring the 'best players' in a range of European locations, the Group gains the ability to increase not only in absolute scale, but also geographical spread. The businesses acquired in Europe were already either the number one or number two players in their respective countries and their core operations were aligned with those of the...
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Page 4: Benefits of entering new markets

A key advantage in operating across markets is to obtain expertise and apply new and best business practices across markets, whilst maintaining and recognising the cultural differences. By learning from best practice - sharing ideas from different markets and business cultures, synergies will be brought to the Dixons Group, which should benefit staff, customers and shareholders.The Group also...
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Page 5: Identifying consumer trends

Consumers differ in how they purchase e.g. the best time of day to shop, the retail environment they find comfortable, the extent to which they want credit facilities, the degree to which after-sales service matters. Failure to allow for these cultural differences can be highly damaging for a new retail entrant. Retailers vary and retailing patterns differ for example, in the size and location...
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Page 6: Conclusion

All four recent moves into European markets outside the UK represent expansion through growing the Group within its existing areas of expertise in markets that have been identified as having attractive growth potential. The product mixes fit comfortably with Dixons' current UK operations and the markets have scope for development. Given this thoroughness of approach, it is hardly surprising that...
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