StudentShare solutions
Triangle menu

Benetton - Essay Example

Not dowloaded yet

Extract of sample
Benetton

While those initiatives above enhanced competitiveness, Benetton is distinguished mainly on their unparalleled ability to develop "networks" and improve integration. Perhaps it can be said that they are one of the early adopters of strategic subcontracting or outsourcing. Almost all business processes are one way or the other outsourced except of course those areas sensitive and confidential to them. These are special skills on product design and manufacturing procedures related to cutting and dyeing. Still, their networking or outsourcing activities remain in the confines of their territory in Italy. Contrary to the prevailing business models in their industry at the given period, even their retail shops are outsourced in the form of informal licensing. By informal it means that most of their transactions whether in manufacturing or retailing are based on handshakes mostly with no written or formal agreements. Conversely, their major competitors Gap and Zara own and control their retail shops. It is estimated that about 85% of business operations are outsourced.
Their vast networking strategy paved way for their tremendous growth not only in Italy but in other countries as well. These licensees played a significant role through financing other aspects of Benetton operations hence allowing the latter to focus their hard work and resources to their core competencies. The embodiment of their strategic outsourcing initiative is evidently shown in their five-stage process for their international expansion. The gauge of their successful expansion must result to buy out of their licensee or subsidiary and integrating it under Benetton management.

Surname 2
In terms of retail operations, the Group is heavily dependent on basic manufactured clothing products contributing about 79% of the total revenues. The balance is distributed in other businesses
like cosmetics, shoes, accessories, and intimate wear. In 1993, the global sales reached 2,752 billion lira with growth of 9.5% versus last year. In addition, the compounded annual growth for the ten years is robust at 17.3%.
The global expansion must strictly adhere to the five-stage process set by the management. Benetton is currently operating in major countries in Europe (Germany, France, and Spain), Asia (Japan, Egypt, and India), and US. To depict clearly the growing global business, 1993 figures show that about 49% of core products sold were outside of Italy with Germany and France as primary markets. Their successful surge in Japan further supported their growing international expansion. However, the conflict with their subsidiary Seibu Group hampered temporarily their market performance.
Benetton's entry to US can be viewed as one of the important expansions in their business. This move opened series of challenges that prompted them rethink their way of doing business and consider new alternatives in business operations. Suddenly, their long-standing business model is becoming obsolete as new business strategies employed by companies like The Gap and The Limited are gaining more advantages for their business. Particular areas of advantages are in inventory management and retail experience management.
To the public's perception and mind share, Benetton's popularity rooted from their "United Colors" campaign showing different ...Show more

Summary

What is the common point between powerful brands like United Colors of Benetton, Sisley, Prince, and Rollerblades They are all under the blanket of Benetton Group. It was established in Italy relying firmly on the business acuity of Luciano Benetton and the crafty creativity of his sister Guiliana Benetton since 1965.
Author : naderwill
Benetton Essay essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Benetton Essay"
with a personal 20% discount.
Grab the best paper

Related Essays

Marketing Communications: United Colors of Benetton
United Colors of Benetton do not focus on any one country or any single culture or a group of individuals when it comes to building its brand image (UNITED COLORS OF BENETTON 2011) Whatever the advertising strategy of United Colors of Benetton has been so far, it is unquestionable to doubt its success.
10 pages (2500 words) Essay
Defining the brand identity of Benetton:Semiotic analysis of company advertisements
The intention of this study is Benetton as a shock marketer, utilising racism-inspired advertisements as a means to promote its corporate values and also establish its market position as a colour-intensive fashionista. Benetton operates in a highly competitive fashion marketplace, therefore creative advertisements are provided by the firm in order to differentiate itself significantly from other fashion retailers.
11 pages (2750 words) Essay
Retailing: United Colors of Benetton and H&M Hennes & Mauritz
It is often regarded as an ever growing business which caters to the changing needs of the consumers. The retailing industry is characterised by the outlets which offer wide range of products to the customers. The companies which belong to this industry sell merchandises or goods directly to the consumers, from a specific location.
18 pages (4500 words) Essay
United Colors of Benetton
7 pages (1750 words) Essay
Marketing Communication
The essay begins with an overview of Semiotic analysis, explaining in context to text and images and in which form it was being used by UCB. The second section deals with the overview of the company, United Colours of Benetton and discussion on the relationship between branding and semiotic.
9 pages (2250 words) Essay
Benetton
The Benetton's were personally involved in the "cutting and dyeing" of sweaters produced by them. Sweaters " from a natural state were taken and dyed in bright colors" whereas their competitors first "dyed the yarn" and then made the sweaters. The Benetton's were at an advantage from using this technique since they could "produce on short notice sweaters in colors demanded by customers."
4 pages (1000 words) Essay
Analysis Report of Benetton Company
he company can be attributed to intense diversification of its operations, an aspect that has contributed immensely in reducing the risks and uncertainties associated with concentrating on a single market (Mullins & Walker 2013). The company’s major competitors are Industria
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation