Piscines Desjoyaux and its Strategy for International Expansion

QUESTION 1
Read the text carefully, then answer the questions at the end. You should use what you learnt in the course and apply it to the company you are being told about.
Company Information:
Piscine Desjoyaux:
- World leader on the market of in-ground swimming pools.
- More than 500 stores in 80 countries, on 5 continents. Around 150 stores in France.
- Started in 1966 when the first swimming pool was built by Jean Desjoyaux for his own family.
- 1988: opened outside France for the first time, in Spain.
- 1990, the company industrialised its production in a plant near Saint-Etienne, France. Thanks to this, prices went down. Prices have continued to go down since then.
- Desjoyaux manufactures only in France. The swimming pools are entirely made from recycled materials. In its catalogues, the company stresses its know-how, experience, and environmentally-friendly policy.
- Desjoyaux has recently opened overseas operations in the USA, in Brazil and in China, but not for manufacturing.
- International sales will soon represent 50% of all sales.
- Once overseas operations have been set up somewhere, then the group recruits franchisees (dealers) to open stores locally. Franchisees are granted geographic exclusivity. They must invest €25,000 from their personal funds. The overall investment is €90,000 but there are no entry fees. Over 2 years, the turnover is expected to be around €600,000. Franchisees are supported by the group in many ways: choice of the location, 1 to 2 months of training, recruitment, customer data... In exchange, they must adapt their store to the demands of the group and sell only Desjoyaux products, as well as meet sales objectives and contribute to the national development of the brand when they are outside France.
Questions: please write full sentences.
1)Write a short introduction.
2)What could have been the reasons why Desjoyaux started exporting in 1988? Can you explain their choice of country at the time?
3)Describe Desjoyaux’s strategy for international expansion after 1990. Cover all aspects including manufacturing and channels of distribution. Highlight the advantages of the strategy for Desjoyaux.
4)Are there downsides to their strategy?
5)Explain why you would or would not consider becoming a Desjoyaux franchisee.
6)Conclude briefly.