Mayson Bouygues Harvard Case Solution & Analysis

Mayson Bouygues

OVERVIEW:

The purpose of this case study is to analyze the current issues and challenges and the business environment of the management of Mayson Bouygues. The company is a construction business

hat operates in the French market and it is the most dominant company in the small houses building markets of the country. The company is a subsidiary of the Bouygues Group that deals and operates in the small houses costumer markets of the industry.
The group that controls the company started operating in the industrial and commercial construction projects in the country after the Second World Warin which the country was captured by the German Forces and suffered massive infrastructure losses during the war.Due to this reason, the construction activities exploded all over the country.

The company became a public limited organization in the early 1970s however, the major stakes of the company are still in control of the Bouygues family, who were the initial founders of the company and the MB subsidiary was later founded in the early 1980s when the management of the organization realized the potential in the construction industry of the small homes.

The initial focus of the management of the organization was on building small, regular and economic homes for the middle class and lower middle class population of the country due to their increasing market segregation and various other reasons such as government assistance programs and sponsor ships aid for building homes for such families that cannot afford to buy new homes themselves.

Due to this assistance program of the government of the country, the management of the organization realized the increasing potential of this segment of the market and therefore, this remained the main target market for the management of the organization for quite some time.However, this has changed over a period of time as the management of the organization has shifted its focus from the lower-end income based segment to the higher-end earning segment of the population of the country.
There are several reasons behind this strategic shift of the management of the organization and most critical of all is the cancellation of the government assistance program for this segment of the target market.Moreover, theother important reason is the recession period in the country which resulted in the economic downturn of the country.

The financial crises of the country have reduced the purchasing power of this segment of the society considerably and have forced the management of the organization to look for potential customers for its products.This decision of the management of the company provided an added advantage to the business as most of the competitors in the industry were still operating in the lower-end segmentation of the population of the country. This allowed the management of the organization an ample time and selection pool to hire and sub-contract the construction operations for this new target market for the business and establish all the secondary support services such as quality control department and other department that were necessary for the company.

The company was able to expand and grow despite the squeezing financial position of the country along with the highly fragmented construction industry of the country. The organization became one of the most dominant companies in the industry due to the wise strategies and the policies of the management of the organization. The most critical factor for this growth and phenomenal performance of the business was due to the highly comprehensive marketing and advertisement campaigns that were being pursued by the management of the organization. The circumstances have changed.................................

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