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Benetton Case Study

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  • 1. Case Study:- Benetton - By: Camille TAPER
  • 2. Summary Benetton was founded in 1955 by the Benetton Family, in Treviso, Italy. It started off by selling coloured sweaters door-to-door. By 1970, they had built up 300 affiliated (but independently owned) outlets in Italy. By the end of the 2009 year, it’s revenues reached 2.049 billion €, and had a workforce of 900,000 employees. It’s revenues are divided: 82% - Europe, of which 48% only from Italy; 14% - Asia; only 3% - America. Today it has over 6000 retail stores in 120 countries around the world; and produces 150 million garments a year! The Benetton family still owns nearly 70% of the company. It advertises “lifestyle” rather than the actual clothes, featuring AIDS, Capital Punishment, Inter-Racial Relations, High Art and Attitude. It sponsors many sports sectors (F1, Rugby, Basketball, Volleyball) They also own a magazine called “Colors”
  • 3. Question 1Is Benetton a Multinational Enterprise? Yes…  It has activities in many countries: as describes in the summary, they have built up a network of more than 6,000 retail stores in 120 countries  All their affiliates have a common strategy and can use the Benetton advertising from their Communication Research Centre in Treviso, “Fabrica” But, can be argued that it is in fact an International enterprise…  because all it actually does is export into other countries, and doesn’t actually have any working bases outside of Italy…
  • 4. Question 2:What are the country-specific factors that haveboosted Benetton’s Success? IfI may say so, the Italians are very proud to be Italians, thus they will definitely buy their own nation’s products… Also, Italy is known for Fashion, so there is a stronger will to buy these clothes Benetton’s CRC (communication research centre) and all it’s other HQ bases are based in Italy Argentina’s space (900,000 hectares) for the sheep to be raised
  • 5. Question 3:What are Benetton’s Firm-Specific Advantages? Itis a family owned Firm Production and design concept built on a strong “home base” Closely monitored independent stores As said previously, Italy is often related to fashion Controversial Advertising
  • 6. From Class: