Benetton report (2)

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Benetton report (2)

  1. 1. Rishabh KapoorSumit RathiPratapChandarNitika Goel
  2. 2.  Situation Analysis Problem Statement Options Criteria Options Evaluation Recommendation Action Plan Contingency Plan
  3. 3.  Benetton is a very successful clothing brand with mass following in Italy with expertise in the field of knitwear. The case describes the strategic and competitive advantages of Benetton, which have allowed it to maintain a foothold in the Italian market for a long time. However, with increased competition their profits have considerably dropped in the recent years.
  4. 4.  The dilemma for the management team of Benetton is to decide between expanding in Europe or in other geographies like US or Japan The expected sales growth in Europe is 15% whereas there is a significant opportunity to open more than 1000 retail stores in the US The decision to expand in the US is to be made after evaluating the pros and cons of the expansion
  5. 5.  The problem for Benetton is tackling low profits in Italy though expansion in rest of Europe or through exploring new territories like US and Japan
  6. 6.  Option 1: Benetton can choose to expand its market into U.S and increase its global visibility Option 2: Benetton could seek to add its other new ventures such as perfumes, shoes by outsourcing of manufacturing Option 3: Could opt for change in product design and diversify into other related clothing like underwear, hosiery, etc.
  7. 7.  Effect on long term growth prospects of the company. Effect on revenues, market share and brand equity. Effect on companys core strengths (as in, its unique pricing, retailing, store location, manufacturing strategies) and values.
  8. 8.  Find a suitable partner for supplying new quality product lines for respective products Label it with Benetton logo Distribute using existing Benetton channels Allocate enough shelf space Advertising to be clubbed with clothing products
  9. 9. Could opt for change in product designand diversify into other related clothing likeunderwear, hosiery, etc.

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