Transition: Key Success Factor: Awa & Peiheng?

Transition: Key success factors: Awa & Peiheng (25 words)
B. The internal analysis
The overall results of a given industry are not revealing enough to study a company's strategy and to explain its success. In fact, a group like Hermes International can distinguish itself from its direct competitors within the same industry and has competitive advantages that are themselves based on strategic capabilities.
In this respect, it will be interesting to understand the strategic capabilities of the Hermes group what are the material, financial and human assets that allow the company to prosper for several decades, to hold a significant number of market shares in the luxury world, and to consider continuing to grow.
In absolute terms, this part of
Consolidated net income group share increased by 13% € 1100 million. The operating margin gained 0.8 point between 2015 and 2016 and represents 32.6% of sales, which is a historic peak.
Thanks to an 18% increase in cash flow to € 1439 million, all operational investments (€ 262 million) and the ordinary dividend
(€ 350 million) were covered.
Thus, Hermes International asserts itself as a group with significant self-financing resources. This makes it less dependent on external financing, especially the public offering, hence the fact that top management is not inclined to dilute the free float
(stock market). On October 27, 2017, the price of the Hermes
International SCA share was € 442.45, which means that.
As a result, operating results that are constantly growing, generating significant cash flows, cash flow growth of nearly
20% over one year, and impressive performances in the financial markets, make Hermes a group with investor confidence and
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being able to raise significant funds to support its growth. This is a distinctive capability, especially in view of the Hermes family's control over the group's business, which ensures its durability and makes it a model.
- Physical (plant, equipment, land, mineral
Also, large companies in the luxury industry rarely have stores under their direct control.
Nevertheless, Hermes International is distinguished, on the one hand, by its policy of taking control of its distribution network. In fact, Hermes International distributes its products in some fifty countries, mainly in Europe and South Asia. The group had 30 exclusive stores in 2016, 68% of which were in the form of branches. It favors the development of a commercial network under direct control to control its brand image, with a gradual reduction in the number of concessions from 123 in 2011 to 97 in
2016.
This feature reinforces the image that Hermes has created, that of a family group giving a vital importance to the direct control of its operations. No other large luxury group can boast of such an advantage with the impressive results it produces (a turnover up
32% year-on-year)
On the other hand, the Hermes group has considerable stocks of raw products, especially precious skins, and workshops that are run on their own.
• Competencies o Human