MSc International Management presentation, Cà Foscari University of Venice. The Smurfs Group

1. International Management
Prof. Micelli
The Smurfs:
Civiero Elena 836529
Cragnolini Alessandro 857647
Drigo Riccardo 844504
Fabbri Anna 855013
Mason Ambra 836607
Pasini Anna 854659
Pilotto Matteo 859631
Maniago District:
lionSTEEL Case Study

2. Agenda
1. District Overview
2. lionSTEEL Overview
3. Our proposal
4. References
SR-1 Original
DPx GEAR: T3

3. ‘’Socio-territorial entity characterized by the active presence of both a
community of people and a population of firms, in one single naturally and
historically bounded area“
[G. Becattini]
9 communities operating in different kind of technological, product and market specializations,
composed by:
 152 firms
 2741 employees
lionSTEEL Knives SAS
Born in 1453, thanks to
the permission of
Venetian Republic
600 years of relation
Sensitivity to
HISTORY and
PAST
Maniago Districts
Report from ‘’Agenzia di Sviluppo del distretto del coltello consorzio’’, 2014-2016

4. ‘’Although it is true that the system of small and medium-sized businesses in Maniago has traditionally based its competitive strength on
its relationships in the local context – the so-called “short” supply chains – it is now becoming increasingly vital to establish links with
production and marketing systems which operate at international level – the so-called “long” supply chains – even pursuing active
programmes of internationalization.”
District Export Trend
40% 8%
5%
4%
43% Export Rate: 45%
www.italtrade.it

5. 2000s Italian Industrial Districts
‘’are on the move’’
Introduction NEW TECHNOLOGIES
Competition from EMERGING COUNTRIES
‘’TRADITIONALLY DISTRICTS were the result of a process of dynamic interactions between division-
integration of labour in the district, a broadening of the market for its product and the formation
of a permanent linking network between the districts and the external market.’’
Possible exploitation due to merging of
community + population of firms
Value Chain Evolution

6. Same scenario in Maniago District
• 2001, China entered in WTO
• New ITCs introduced
Foreign competitors entering in the
knives market with similar products (often
imitation) at lower costs
Implementation of
delocalization and
outsourcing strategies in
China
( cheaper workforce
+
commodities)
Developing Global Value Chain

7. 1969
Foundation
by G.
Pauletta
END OF THE 90s
Entrance of
Massimo, Gianni
e Daniele
2000s
Focus on
Innovation,
Materials
and Brand
TURNING POINT
2009
TOP QUALITY
PRODUCT
2010
(Atlanta)
Most
Innovative
Imported
Design
2014 (Atlanta)
Best
Manufacturing
Quality Award
and Overall
Knive of the Year
2015
(Atlanta)
OverAll Knive
of the Year
2012 (Atlanta)
Most
Innovative
Imported
Design
lionSTEEL History

8.  Every Day Carry knives , collectors’ items;
 Turnover tripled in the last 5 years : 2 million euros
threshold exceeded;
 From 7 to 21 employees;
 Vertical integration: evolution, born as a third party
producer, now most of the value-chain activities
 in-house
CEO: Pauletta
Gianni
Chief Product
Officer: Pauletta
Massimo
CNC Chief
Constable
Specific
machines
responsible
Specific
machines
responsible
Specific
machines
responsible
Workers
lionSTEEL Overview

9. •Huge investment in the company
•From middle quality product to high quality
product
Differentiation
from local
trend
•
•Association of tradition and high quality
knives with Maniago district
•Outsourcing opportunities: non core activities
like brand-printing, knives paintings
•Resource seeking: young talent from local
technical and artistic schools
Exploitation of
the district
opportunities
lionSTEEL and the District

10. Suppliers
CustomersCompetitors
 Product based market
 Behavioral approach:
co-operation
 Top firms are American:
SPYDERCO
MICROTECH
CHRIS REEVE
BENCHMADE
Product quality Quality of materials
International recognition:
strength to impose prices
and make a screening
based on the brands the
dealer already sells and the
behavior in terms of price
Attention on global image
of the brand: auction sites
avoidance, important to
defend the brand and the
quality perceived also in
terms of prices.
Competitive Environment

11. From Local To Global
DIRECT SELLING in 34 countries
International brand awareness thanks to the awards won
94% revenues from international markets (USA, Germany, France…)
Exports

12. Co-Branding
in the past
•lionSTEEL
looks for
partnerships
Co-Branding
nowdays
• SMEs look for
partnerships
with lionSTEEL

13. INFO-
COMMERCE
E-COMMERCE
Create interest through
QUALITY and PRODUCT CHARACTERISTICS
Data collecting
warranty activation
subscription on the web site
Data on customers’
preferences and
location
EFFECTIVE achievement of
clients
E-Commerce & Big Data

14. Learning
from
other
industries
Innovation Process
Research & Development

15. • Design, prototype, manufacture in
end-materials
Subtractive
Manufacturing
• Process of joining materials layer
upon layer to produce an object
Additive
Manufacturing
Companies are looking for solutions that provide better, faster,
cheaper ways of producing prototypes and manufacturing parts
Technological Scenario

16. lionSTEEL and the Technology
 Constant machining precision
 Coexistence of craft work and innovative technologies
 Preview of the product before it becomes real
Competitive Edge = offer an innovative and sophisticated product

17. Subtractive Manufacturing
The necessity and willingness to propose every year something new brought to investigate whether
there might be some technologies used in other markets that could suit and improve the quality and the
innovation of lionSTEEL knives.
 IKBS System: manufacturing process facilitating the sliding of the blade
 SOLID® Knife Technology: handles made of a single piece

18.  Application of aerospace technology (kinetic analysis);
 High-performance materials and weight reduction;
 3D Printing techniques: world’s first producer of a folding 3D printed knife;
 DMLS Technology: important work of precision from a block of titanium.
Additive Manufacturing
“’Best Manufacturing Quality Award 2014”
TiDust
The first folding knife made
using additive manufacturing

19. QUALITY  high standard and high
quality production are requested in
order to guarantee consumers the
service of lifelong warranty.
INNOVATION  “innovate the process
to innovate the product”.
DESIGN  boost the quality of the
product, value-added for many knives
enthusiasts and collectors.
FLEXIBILITY  ability to overcome
different legal costraints.
QUALITY
DESIGN
FLEXIBILITY
INNOVATION
Competitive Advantages

20. Global
Presence

21. Geo-Political Scenario

22. Our Proposal

23. lionSTEEL in the world

24. New Contest
Photo/video sharing
New shapes and
functions

25. Open Sourcing Internet

26. Launching
the product
Gift
product
Limited
editions

27. Benefits

28. References
www.lionsteel.it
www.italtrade.it
www.distrettocoltello.it
www.montagnaleader.org
www.infocamere.it
www.unioncamere.it
 Report from ‘’Agenzia di Sviluppo del distretto del coltello consorzio’’, 2014-2016;
 Becattini (2004) The Marshallian Industrial District as a socio-economic notion,
 Chiarvesio, Di Maria, Micelli (2010) Global Value Chains and Open Networks: the Case of Italian Industrial
Districts,
1. Bibliography
2. Websites

29. Thanks for
your attention!
Anna P.
Elena Alessandro
Riccardo Matteo Anna F. Ambra