Final Ppt of Benetton
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Transcript of Final Ppt of Benetton
LOGO
BENETTON
A CASE STUDY
A case signify that how a company has grabs opportunity areas of improvement and how its implement its strategy to success in business.
• Basic concept.• Core competencies/ competitive advantage• SWOT/ PESTLE Analysis
Introduction
THE COMPANY PROFILEHeadquarters Venice Area, Italy
Industry Apparel & Fashion
Type Public Company
Status Operating
Company Size 9,500 employees
2006 Revenue 1,911 mil [EUR] (8%)
Founded 1965
Website http://www.benetton.com
MISSION
To bring a sense of social responsibility to Benetton's $2 billion-a-year apparel line...
PESTLE AnalysisPolitical• Cemetery Conflict
Economical • neoconservative political philosophy• new post-Fordist production techniques• minimum state intervention
Social • close relations with its local origins by culture activities and sports.
Continue…… Technological• commitment to innovation• communication to IT• research into new materials to integrated logistics
Legal • Non related message
Environmental• recycled packaging• importance of environmentally responsible branding
www.themegallery.com
CASE ANALYSISGlobal network TechnologyBusiness process ReengineeringRelated DiversificationCustomization Globalization
LOGO
CORE COMPETENCY
Color makes Benetton unique. Benetton is an international company with a
global brand imageBenetton retains classic designs and saves costs
by avoiding too much varietyThere are strong contractual arrangements
with key suppliers around the world.
core competency
Sophisticated IT systems are utilized in both design and manufacture.
Purchasing is centralized and bulk.Benetton strictly controls the design, layout,
ambience and price in every store.
SWOT ANALYSIS
Strength•Worldwide brand recognition•Successful business model•Successful track record of recent collections.•Efficient and fully industrialized production process
Opportunities •Expansion in emerging Markets•Strong operating leverage•Benefits from USD weakness.•Delocalization of production for basic casual lines •Increased weighting of ‘flash’ collections on total group sales
•Weakness•Brand appeal has declined•No control of commercial Partners•Longer time-to-market vs. pure retailers•Still limited role of retail in group’s business model
Threats•acquisitions in retail•Lower growth vs. its peers•Small size in several markets•Zara entering the Italian market in 2002
Competitive advantage
Assembly line production –
The dyeing garments were manufactured by assembly form of production. This gave a cutting edge to Benetton
Extensive use of IT sophistication –
The use of CAD/CAM in production
The use of robots in the warehouse
United Colors of Benetton Watches
UNIQUE SELLING PROPOSITION(USP)
Perfect use of patent rights & the classic designs gave them a unique place & enhanced their global image.
The blend of colors were the manifestation of their quality & impeccable variety.
CORPORATE VALUES Active and extrovert:
Visible and active in the market and present in word and deed. Guts:
Always on the lookout for opportunities and having the guts to be a trendsetter.
Transparent: Open, honest and always clear in our communication.
Fair: A trustworthy and integer partner, doing business in a conscious and responsible manner
Service minded: Customer oriented, with focus on problem solving.
VALUE CHAIN IN BOUND LOGISTIC OPERATIONS OUT – BOUND
LOGISTICSMARKETING & SALES
SERVICES
SUPPLIES RELATIONSHIP MANAGEMENT
ASSEMBLY LINE PRODUCTION HELPS IN QUICK MANUFACTURING
CENTRAL WAREHOUSING USING ROBORTS
MASS ADVERTISING
GOOD CUSTOMER SERVICE BY ITS FRANCHISEES & RETAILERS
CONTRACTUAL AGREEMENTS IN PRODUCTION
USE OF IT SOPHISTICATION
GOOD STOCK MANAGEMENT & IN TIME STOCK AVAILABILITY
CREATING BRAND EQUITY WITH PUBLICITY
PROVIDE TRENDY & QUALITY PRODUCTS
LOGO
WHAT IS BENETTON’S COMPETITIVE STRATEGY?
Benetton's corporate and competitive strategy is designed to convert resource into customer value.
The company is able to achieve this value through innovation in production, information processing and product design
Its competitive and corporate strategy enables Benetton to overcome market restraints
Benetton's competitive strategy enables it to manage the value-added network (links with manufacturers, retailers, suppliers and distributors) in an effective and integrate
LOGO
HOW DOES IT ACHIEVE COMPETITIVE ADVANTAGE?
Dying assembled garments to response fashion change.
Take a help of IT to maintain stock quickly.Develop CAD and CAM technology.Warehouse maintain by robots.Excellent Stock management to reduce cost.Innovative design and research regularly.
How does it achieve competitive advantage?
Continue…..
Broad spectrum of color shadesCentre message by advertisement throughout
the world.Unique Selling Proposition
LOGO
HOW DOES BENETTON USE
NETWORKS AND PARTNERSHIP
TO GREAT EFFECT?
www.themegallery.com
Benetton use Exclusive distribution network and having no mediators.
Directly one shipment to 6000 retailers in 83 countries.
Benetton works with 85 agents through worldwide.
All manufactures and retailers directly have IT link with Benetton
Continue…….
Joint venture with WIDE resultant reduce rationalization
Work with more then 300 subcontractors sake of flexibility in technology, manufacturing, distribution.
Centralized buying in bulk quantity in Australian with various partner
Continue……..
vertical integration Strong partnership with racing car to create
brand Image
LOGO
IN WHAT WAYS WOULD IT BE
DIFFICULT FOR COMPETITORS TO TRY AND COPY THE SUCCESS?
www.themegallery.com
strong relationship with suppliers assembly line productionwith subcontract agreementUSP - color blendhigh brand equityextensive use of IT sophistication
CONCLUSION
The success of Benetton is not a cake walk , it is a consequence of eccentric business strategy, innovative technology Uninterrupted research and integrated ideas, which the Benetton one the best company in world.
LOGO