Since the influential works of Schumpeter, the importance of technological change and innovative activity for industrial dynamics and for economic growth have been widely discussed.
Related ABSTRACT The business environment of the modern world is very complex and effective business strategy plays an important role in the success of a business firm. The implementation of a strategy at the right time and right place to the right people is the key for success.
The firm which succeeds in implementing this can overcome the hurdles of the business environment. This report gives the details of the main difference between the conventional and the new Benetton networks focusing on product design, supply and distribution.
The Benetton story of growth from a small company to one of the worlds largest garment producer is attributed to the establishment of an effective network for the production, distribution and retailing. The company extensively used subcontracting in the production, supply and distribution in the initial phase.
As mentioned by Ramdass and Kruger the certainty of business like permanent orders and prompt payment helped them to establish a long standing relationship with the subcontractors. The strategy of outsourcing and effective networking of the subcontractors has reduced the cost of the company in terms of capital investment, labour and processing time.
This helped the company to grow in a short span of time as a global leader in garment production. The effect of globalization has slowly changed the style of business of Benetton. In order to have effective control, Benetton started production poles and directly controlled market outlets.
The change in the strategy helped the new Benetton to retain the competitive advantage. Benetton has created a borderless world by linking raw material suppliers, manufacturers and 6, retailers to deliver 60 million garments a year to satisfied customers in 83 countries Dapiran, The Just-in-Time JIT method adopted by Benetton in dyeing helped to take care of the rapidly changing fashion in the garment industry.
Benetton is doing the dyeing at the last moment of production depending on the latest requirements of the customers which increases the reaction speed and reduces the cycle time of products. They are able to get the latest requirements through the rapid transfer of information using the Electronic Data Interchange EDI system which links the market place with the manufacturing process.
Benetton also showed that economies of scale is possible in the freight-forwarding function Dapiran, It was established through a Worldwide Integrated Distribution Enterprise WIDE to control the international forwarding and customer clearance functions. They are mainly engaged in casual wear business, sports business and complimentary activities.
Benetton always tried to offer same or similar range of products in all the markets. But till the starting of globalization more than 20 percent of models in the casual wear segment were customized to satisfy the demand of each country Camuffo, Romano and Vinelli, The models in each country were selected by individual retail agent which has resulted in developing different image for Benetton in different parts of the globe.
The increase in the number of models increased the set up time which resulted in under utilization of the available facility.
Globalization has changed the style of products offered in the textile industry. The cross country homogenization of consumer lifestyles is observed in the market which encourages the firms to produce global products rather than offering country specific products. This has resulted in changing the product mix of Benetton.
There present plan is to offer more limited range of products in all the country. Nowadays only 8 percent of the models are only offered with differentiation suiting to the county specific demand.Strategy Analysis: Benetton 1.
With the declining of global spendings for fashion in Europe and in thecontext of an increasing competitive market in which Inditex and H&Mcompete for leadership,How can Benetton reorganize its activities to play its cards right?
strategic marketing plan united colors of benetton benetton usa introduction situation analysis strategy step 4 objectives - marketing objectives. A case study analysis of the Benetton supply chain. Stiff competition has forced Benetton to radically change its retail strategy (Economist: 9 November ).
To that end it has introduced over „mega-stores‟ and, whilst the majority remain under the franchise system, the company has decided to take direct ownership and control of a. How Benetton is changing its colours. Famed for its shocking ads of the 80s and 90s, Benetton’s sales have slumped recently, but chief marketer John Mollanger’s turnaround plan puts the focus back on products.
In order to execute Benetton’s new strategy, Mollanger believes the company will have to go back to its beginnings to inform. benetton’s innovative strategy a) Supply network re-organisation (upstream and downstream) In the garment sector the supply of raw materials plays a crucial role in deciding the lead time of production and managing supply chain in today’s world is very challenging (Christopher and Lee, ).
Benetton Group Evolution Of Communication Strategy Marketing Essay. Print The Benetton Group is a clothing company with strong family roots whose main advertising objective is to raise brand awareness through awareness of social and political issues.
and a company must have the ability to realize its faults and adapt its advertising to.