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DIJONCTA is a family business established in Morocco since 1968 and specialized

by | Mar 3, 2022 | Management

 

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DIJONCTA is a family business established in Morocco since 1968 and specialized in manufacturing
high-end electrical items. Its flagship product is the STOGO electrical switch whose sales have
grown significantly in recent years thanks to the CE marking. The company currently employs 80
people, including two electrical engineers, five plastics technicians, a
quality controller, four representatives and a safety officer. All the other
employees are workers, most of whom are unskilled and several of them
are family members of Houcine Othmani, the owner-manager of the
company.
DIJONCTA’s turnover amounted to 10 million dirhams in 2018, 20% up
from the previous year. It comes entirely from activities carried out on the
French market through an import agent established in Paris. It was this agent, recruited during a
French trade mission to Casablanca, who helped the company obtain CE marking, mandatory to
enter the European market. In the absence of cost accounting, the selling prices of the company’s
products are set by alignment with the competition prices communicated by the French agent.
Houcine Othmani centralizes all management functions in his hands. During the annual holiday
closure, Houcine travels to France in the Dijon region where he owns a small house that his late
father bought for him when he was studying pharmacology at the University of Dijon. He takes
advantage of his stay in France to visit the importing agent in Paris to discuss with him the
evolution of the market and its trends.
This year, and under the pressure of his wife who wanted to visit her sister in Côte d’Ivoire,
Houcine decided, but reluctantly, to spend his holidays in Abidjan. As he was walking on a
beautiful July afternoon in the streets of the Plateau district, his attention was drawn to a store
selling electrical and electronic items. What was his surprise when he discovered the STOGO
switches displayed in the store in packaging bearing the brand of the French importer! The prices
displayed were three to four times those which the distributing agent claimed to charge at retail.
A small discussion with the store owner persuades Houcine of the existence of a certain potential on the market of the sub-region.

 

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