Business model
The Group’s growth and high profitability in recent years – and its success in positioning the Björn Borg brand – has largely been the result of its business model. The model facilitates expansion geographically and in the product range with limited operational risk and capital investment, while retaining control over the brand.
Björn Borg’s business model utilizes the Group’s own companies and a network of distributors and licensees, which have been granted licenses to one or more product areas and/or geographical markets. The net - work also includes Björn Borg stores operated by the Group or as independent franchisees.
By utilizing its own network as well as independentpartners, Björn Borg can be involved in every part of the value chain and develop the brand internationally with a compact organization and limited financial investment and risks. The business model requires little capital investment by the company, since licensees and distributors are responsible for marketing, including investments and inventories for their product areas or markets. The model generates substantial consumer sales with limited risk and investment for Björn Borg. Björn Borg owns the strategically most important operations – the company responsible for the underwear product area.
Another positive effect of the business model and the network’s use of a number of independent distributors is that the competence and valuable local expertise of these enterprising entrepreneurs can be put to use.