Benetton is a multinational enterprise headquartered in Italy with operations in over 120 countries worldwide. It has over 7,000 retail stores globally and still produces over 80% of its goods in Italy, where the Benetton family still owns 72% of the company. Some factors that helped Benetton succeed include its strong base in Italy and ability to leverage economic linkages within the European Union. However, it struggled in the United States market possibly due to not fully understanding local lifestyles. Benetton has also found success through distinctive and cutting-edge international advertising that promotes a global lifestyle, rather than directly advertising its products.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Benetton is a multinational enterprise headquartered in Italy with operations in over 120 countries worldwide. It has over 7,000 retail stores globally and still produces over 80% of its goods in Italy, where the Benetton family still owns 72% of the company. Some factors that helped Benetton succeed include its strong base in Italy and ability to leverage economic linkages within the European Union. However, it struggled in the United States market possibly due to not fully understanding local lifestyles. Benetton has also found success through distinctive and cutting-edge international advertising that promotes a global lifestyle, rather than directly advertising its products.
Benetton is a multinational enterprise headquartered in Italy with operations in over 120 countries worldwide. It has over 7,000 retail stores globally and still produces over 80% of its goods in Italy, where the Benetton family still owns 72% of the company. Some factors that helped Benetton succeed include its strong base in Italy and ability to leverage economic linkages within the European Union. However, it struggled in the United States market possibly due to not fully understanding local lifestyles. Benetton has also found success through distinctive and cutting-edge international advertising that promotes a global lifestyle, rather than directly advertising its products.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Benetton is a multinational enterprise headquartered in Italy with operations in over 120 countries worldwide. It has over 7,000 retail stores globally and still produces over 80% of its goods in Italy, where the Benetton family still owns 72% of the company. Some factors that helped Benetton succeed include its strong base in Italy and ability to leverage economic linkages within the European Union. However, it struggled in the United States market possibly due to not fully understanding local lifestyles. Benetton has also found success through distinctive and cutting-edge international advertising that promotes a global lifestyle, rather than directly advertising its products.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Download as doc, pdf, or txt
You are on page 1/ 4
Submitted by: Anzar Khan
Reg #: 1511106041 Program: BBA Semester: 9th Subject: International Business Submitted to: Sir Ahmed Butt Case Study Answers BENETTON IN THE FAST LANE
Is Benetton a multinational enterprise?
Benetton is a Multinational Enterprise as it is
headquartered in Italy and has operations in other countries. It has built up to a global network of over 7000 retail stores in 120 countries. Over 80% of production still takes place in Italy & the company is still 72 % owned by the Benetton family. As one of the characteristics of MNEs is that the company and its business partners have a common strategic vision, Benetton and its independent stores across the globe are working towards a common strategic vision. Another characteristic of a Multinational Enterprise is that it draws on a common pool of resources. In this case Benetton allows the independent stores to use its brand name and part of the manufacturing savings are done by outsourcing to neighboring subcontractors. What are the country-specific factors that have helped Benetton be a success?
Benetton is one of those successful global companies
that was partly successful as to its production & design was built on a strong home base Italy. The EU countries have close economic linkages with each other and Benetton being in Italy benefited from this fact. The same European culture and lifestyle in many countries helped Benetton apply similar strategies. However, the number of outlets reduced from 700 in 1988 to 150 by 1995 in US. and it might be difficult for the Benetton family to understand the American Lifestyles from its European bases. What are the Benetton’s firm specific advantages?
Benetton’s 80% percent production takes place in
Italy and 72% of the enterprise is owned by Benetton. Benetton has its firm specific advantages in advertisements. It goes I for cutting-edge advertising that grabs public attention. Benetton’s closely monitored independent stores were able to use Benetton’s brand name, distinctive colors and were supported by clever international advertising. Benetton doesn’t advertise its products directly. Rather its advertisements are for a lifestyle. The “United colors of Benetton” ads are designed for a homogeneous global consumer interested in fast cars and a fast lifestyle. This creates an image of new age awareness as Benetton advertising has featured Formula 1 cars, AIDS, high art and “attitude”.
