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Luxottica's internationalisatoin and globalisation strategy - Essay Example
Pages 12 (3012 words)
This study analyses the case of Luxottica's internationalisatoin and globalisation strategy. It delves into the various elements of the company's growth and expansion since the 1970s to present and views various components of international management, international marketing and growth on the global scale…
The researcher of the paper will examine the elements of the gradualist approach used by the company in its globalisation strategy. It will examine the competitive strengths of Luxottica. This will be followed by a critical view of the distribution strategy used by the company to capture the markets in the various countries it operates within. Corporate strategy refers to the long term, company wide plans instituted and implemented by top level management. Luxottica began in 1961 as a small obscure Italian optical manufacturer. It was originally set up to provide spectacles for the local markets and this was the main strategy employed in the first first decade of operations. Within this time period, the strategy was focused on establishment of the brand in Italy. This means that the owners just sought to provide for the local customer base in the home country. Within the first decade, the company grew sufficient competency and skills in the manufacture of spectacles. Whilst the competencies increased, the brand became admirable overseas. In 1971, the company made major contacts outside Italy and began to export. This strategy was simply based on the production for a larger customer base who dwelt outside Italy. The corporate vision was still local in nature. The only variation was the increase in demand caused by the introduction of new customers outside the borders of Italy. In the early 1970s, the plan was simply to manufacture and sell to wholesalers in foreign countries. ...