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    Lille Tissages S.A.

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    Activity one: Lille Tissages case.
    The background - or context - of the case is very important to understand the strategic implications of the accounting data, and to make appropriate management decisions. For example, if you determined that a company needed more cash, your decision about the source to use for that funding would be very different if the company were a small startup company than if the company were Coca-Cola. So as you answer the background questions for this and future cases, focus on those facts that are most relevant to the kinds of decisions that the company needs to make in the case.
    In responding to these questions, you want to consider all of the analysis that you have done in the Lille Tissages case, including ICE 1 and ICE 2.
    1. What's Lille Tissages' business and competitive situation?
    2. What's been happening to Lille Tissages' market share? Why?
    3. Why aren't the competitors at FF 20? If you are Lille Tissages, what can you do to get the competitors to FF 20?

    Please use the case “Lille Tissages S.A.” (Harvard Business School case, no. 9-198-005).

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    Solution Preview

    1. What's Lille Tissages' business and competitive situation?
    Lille Tissage is the largest company in its segment in the French textile industry. It reported net sales of FF96 million in 2003. The company has many product lines with Item 345 being the most popular one. Item 345 is an expensive yet competitive product in its segment. Lille Tissages is in situation where a decision has to be made for the pricing of Item 345. For this the marketing and finance directors have met to prepare a joint pricing recommendation.
    Most of the competitors of Lille Tissages are small and wait for Lille Tissages to ...

    Solution Summary

    Analysis of competitive situation of Lille Tissages for Item 345