The Benetton group

Founded in 1965, the Benetton Group started with limited resources that necessitated the st come ingy that ultimately resulted in rapid international growth. Since the beginning, Benetton concentrated on devoting its skills to the design and support off of quality clothing instead of providing direct consumer retailing. Benetton doed a competitive advantage by pictureing its brand as the known Italian app arel manufacturer, concentrating mainly on fashion-conscious young consumers from their mid(prenominal)(prenominal) teens through mid thirties. Since almost 85% of its return is subcontracted to most 500 contractors two in Italy and abroad, and most retail stores are independently owned, Benetton does non have direct managerial regard over production and sales operations. Additionally, Benettons in-house operations and manufacturing partners are for the most part modify in Italy (as much as 82% of force construct products were produced in Italy), making them susceptibl e to exchange rate fluctuations. On the retail side, Benetton utilizes contracted agents working on commission to establish and support retail outlets. The entrepreneurial agency ashes helped Benetton to quickly dramatize their retail network, and thus, push more Benetton products. However, the agency system does not provide the operational support to retail stores open in centrally controlled retail competitors, like The Gap, and cannot enforce either vulgarity in layout, stocking, or décor from store to store.

Additionally, the payment coordinate for agents only encourages sales. There is little direct in ducing to assign best practices with new(! prenominal) agents in different territories, to share business apprehension with Benetton, or to devote resources to helping cast the Benetton brands. In otherwise words, the agency system encourages the free-rider effect. It is recommended that Benetton alter its schema in quaternity steps to defend its core markets, and to organise itself for future international expansion into new markets. In other words, Benetton needs to reach out globalization for its long-term growth, and... If you want to live on a full essay, order it on our website: OrderCustomPaper.com

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