This report stresses that considering the market data provided by the case study of Luxottica, it is imperative that franchising the business would lead Luxottica to reduced control over the sales and distribution network. Franchising the business would not only cause ambiguity in the supply chain management but also increases the costs involved in making the product available for the customers. Presenting auctions for franchising and continuous management of franchised business is considered to be a costly initiative by a business.
This paper makes a conclusion that the company may look for and implement alternative distribution strategies which offer some new avenues and can attract people from all over the globe. In this regard, it is recommended that the company shall add to its existing distribution channels an online distribution source or platform, form where the company can interact with the whole world through the World Wide Web and this approach will add a complete new dimension in the existing distribution channels for the company. The major benefits of distributing through online platform are that it is cost effective and is able to attract large number of consumers due its omnipresence on the globe. Moreover, the company may find it relatively easy to control its distribution activities through online channels as compared to the existing channels of distributing its products. Thus, online distribution channel can be recommended as an alternative distribution channel for Luxottica. ...Show more