Benetton - History and Present Structure When Luciano and Giuliana Benetton, both grown up under the harsh conditions of war and post war Italy, founded Benetton group in 1965, they probably did never dream that one day their company would among the most famous in the fashion industry. Yet, 34 years later, Benetton is present in 120 countries and Edizione Holding, the holding company of the family is now making a yearly turnover of XXX billion Lira[1]. Not at least due to their controversial advertising campaigns which sparked strong reactions around the world, from outright ban to art awards, Benetton has become known worldwide. After the opening their first store in 1968 with a surface of only 40 square metres things were looking upwards soon. With the first successes, Luciano's and Giulinana's younger brothers, Gilberto and Carlo joined the business and since then Benetton has always relied on family and friends in their growing need for executives[2]. Thanks to an attractive design of their products with a bold choice of colors, a franchise system which allowed for expansion without large investments, a closely coordinated production and innovations in manufacturing techniques, Benetton rapidly conquered market shares, first in Italy, then in Europe and overseas[3]. In 1985, their annual turnover had reached 900 billion Italian Lira and their network included 3000 point of sales, mostly in Europe[4]. Since the late 1980s, Benetton is firmly engaged in a diversification strategy. Starting with the acquisition of ski-boot manufacturer Nordica in 1989, the group first moved into the sportssector. Other sport brands w... ... middle of paper ... ...rea, Seoul, Jan. 1999. [27] Case Study, "Cas Benetton", p. 10, taken from the course STM 111- Strategie et Management, professor: Gilles van Wijk, ESSEC Business School (see bibliography for complete address). [28] "Les nouvelles couleurs de Benetton", Figaro Economie, 15828, July 10, 1995, page 4 and 6. [29] "Les nouvelles couleurs de Benetton", Figaro Economie, 15828, July 10, 1995, page 4. [30] cf. "Managing across borders: New strategic requirements", C.A. Bartlett and S. Goshal, Sloan Management Review, 28, (Summer 1987), pp. 7-17. [31] 55% of Benetton Sportsystem's turnover realized in North America, "Les nouvelles couleurs de Benetton", Figaro Economie, 15828, July 10, 1995, page 5. [32] cf. "Managing the MNC: The end of the missionary era." G. Hedlund and Kogut, Mimeo, December 1988.
‘SALOMON S.A. a fast growing French company is the world leader based on its sales in winter sports equipment. Started as a small producer of steel edges for ski, the company always aiming at improving its position in each of its market areas. Number one in ski-bindings market with 46% market share, number one in cross-country boots and bindings with 30% market share and number two in alpine ski boots. Salomon’s sales were distributed around the globe – North America and Europe hold the highest percentage. The company was heavily involved in competitive events in winter sports and golf. Salomon’s management philosophy is based on three basic principles: partnership with employees; cooperation with suppliers and distributors; innovation for customers.
Giorgio Armani’s target market is kids, women and men. They would have to be quite wealthy as the products sold are expensive to buy compared to other brands. Giorgio Armani has 500 exclusive retail stores in 46 different countries worldwide. Instead of following the latest trends, he creates them
It is important to understand as well as relate to the main analysis, which is present within the various business industries. It can be seen that in order to analyze and understand the different business models in the fashion and clothing industry of high-end brands, Zara is a very important brand of that purpose. Through analyzing the case study of this firm “Zara: IT for Fast fashion”, one can also understand how the businesses place themselves in competitive positions and how they compete in the market.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
Acknowledgment of Brand: Zara leads the pack on this variable because of its compelling image value over the globe, they needn't bother with much notice or advertising in light of the fact that they are as of now solid in worldwide business. In the mean time, H&M and Uniqlo are getting up to speed with Zara. That is the reason why the organization at long last understood the need to contribute all the more on ads. They inevitably contributed more than 600 million euro to enhance their plugs and their logistics at the same time.
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. Today in 2000, Nike Inc. not only manufactures and distributes athletic shoes at every marketable price point to a global market, but over 40% of our sales come from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States). We utilize over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell our sports and leisure products. We dominate sales in the athletic footwear industry with a 33% global market share. Nike Inc. has been able to attain this premier position through "quality production, innovative products, and aggressive marketing." As a result, for the fiscal year end 1999, Nike's 20,700 employees generated almost $8.8 billion in revenue.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
In the modern world we live in, international business plays a key role in the functionality of countries resources and economy. The ease at which people can purchase goods from another country and the outsourcing of brands has now meant international barriers has been squashed and large corporations are more accessible than ever. In recent times, the huge and unbridled up rise of Multinational Corporation is the Famous Japanese clothing brand UNIQLO. UNIQLO's full name is UNIQUE CLOTHING WAREHOUSE, it is defined by the inner meaning of unnecessary decoration decorative abandoned warehouse type store, supermarket shopping using the self-service model, in order to provide a reasonable and credible customers want commodity prices. It is arguably Japan's most successful local fast fashion brand, began in the 1980s, developed in the 1990s. 1980s, Uniqlo focuses on the basic design of unisex casual wear, such as shirts, jeans, sweaters, etc., although these fashionable clothing, but do keep up with changes in fashion. Secondly, the introduction of Japan's first hypermarket style clothing sales, in the form of warehouse stores, with " reasonable and credible prices and large continuous supply, allows consumers one-stop shopping. The most important thing is moving the factory to cheaper places, lowering production cost, allowing prices for consumers to stay extremely low in comparison to other fashion outlets but at the same time staying at a high rate of quality. Through the unique product planning, development and sales system to store operations to achieve cost reduction, the shape of the Japanese consumer 's favorite leisure brand.
Miuccia Prada once said that “What you wear is how you present yourself to the world, especially today, when human contacts are so quick. Fashion is instant language”. Miuccia Prada and the Prada brand have grown from humble beginnings making quality leather goods to a public traded company with a current market capitalization of over $26 billion (USD) . With the development of Prada as one of the world’s premier luxury brands it provides an excellent case study to examine how strategy paved the way for the success of the Prada brand. First, an examination of Prada’s strategic positioning against luxury brand rivals Louis Vuitton Hennessey Moet (LVHM) and Kering (Gucci). The acquisition history of Prada will be reviewed, where some preliminary conclusions can be made about what has been contributing factors to both the successes and failures. Then finally, an evaluation of what the future holds for Prada and the sustainability of its competitive advantage.
In addition to the traditional advertising communication and campaigning concepts, La Perla is stressing on the digital tools like Internet sites, and initiatives from films sponsoring, photographic exhibitions, editorial initiatives, music CDS, and also to event organizations pertaining to glamour. La Perla coherently and passionately explores the daily need in feminine universe through the digital tools, which is La Perla’s unmistakable guiding thread. Famous designer Baciocchi Associati had transformed the Via Monte Napoleone’s La Perla boutique by doubling in total area size, which forms as the Italian lingerie’s part and as global expansion plan of fashion brand. The luxury brand La Perla’s new collection has a huge retail space with over 240 square metres built across concrete two floors. The space is well illuminated complementing the marble floors built with pure white marble, where the sapphire-blue carpets in addition to a metallic herringbone trim softens the entire environment in the retail store. The current trends as introduced by La Perla are modified and designed with the utmost care for the ladies’ comfort. A new brand La Perla Villa Toscana, where the beachwear, nightwear, home wear and underwear can be distinguished by both
The underlying logic of the non-carbonated drinks strategy was to introduce a new brand of drinks into a market that had become more health conscious. As previously mentioned, carbonated drinks or the conventional soft drinks have been increasingly associated and criticized for increase in obesity cases across the globe. Therefore, the introduction of non-carbonated drinks is vital towards addressing the health and nutrition concerns of consumers who continue to search for alternative beverages. The non-carbonated drinks strategy would therefore act as a means for the company to assure its customers that it is sensitive to the emerging health issues and concerns throughout the world.
The fast fashion brands and retailers successfully embrace quickly changing tastes among their customers, aiming to become the most popular and up-to-date topic in the fashion industry. They bring new trending styles to the market, and the inspiration comes from the catwalks of fashion weeks or celebrity magazines. The creation, marketing and selling of fast fashion products has become big business for high-street retailers and is putting a lot of pressure onto established fashion brands as they struggle to keep pace with quickly changing demand.
18. Rugman, Alan M. and Collinson, Simon. International Business 4th Edition. Essex : Pearson Education Limited, 2006.
Out of the 1,558 stores that Inditex operated in 45 countries in 2003, Zara chain had 550 stores with an average of opening one store per day worldwide. Today Zara has a huge international presence, with France being its largest international market. Its target market is young, fashion conscious city-dwellers. It offers a wide range of selection of clothes and accessories to three different segments of its target market– the largest being Women’s accounting for 60% of sales and the other two being Men’s and the fast-growing Children’s segment. Multinational clothing retailers such as H&M, Gap, and Benetton are its competitive rivals. Keeping this in mind, the consistent success of Zara in the ever-...
Chocolate is a sweet, creamy, delicate treat that many of us enjoy consuming. But, it is not born into the delicious treat we love. It is a ground bean called cacao and is fermented and roasted to become chocolate. Therefore, original chocolate tastes very bitter and is not so enjoyable. Chocolate is a food that can be eaten in many ways. We can enjoy it sweetened or we can use it unsweetened for cooking or baking. The founding of chocolate dates to the Mesoamerican times. It can be traced back to MO kaya and other Pre-Olmec people. Chocolate is not subjected to being found in just one place. This paper will study where these cacao beans come from and who grows these plants.