Benetton

The corporate strategy of a firm is the match between the company's internal capabilities and its external relationships. Strategy determines how a firm responds to its suppliers, its customers, its competitors, and the social and economic environment in which it functions. With respect to Benetton, the corporate strategy is identical to its competitive strategy. According to Davis and Devinney, corporate strategy is about "the firm's positioning vis-�-vis its rivals...and about the efficiency conversion of resources into customer value" (1).

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. Despite competing in a mature industry with high labor costs, Benetton enjoys rapidly rising sales and profits. Its competitive and corporate strategy enables Benetton to overcome market restraints other companies cannot, a strategy that creates value and relies on innovation. As Smyth (et al) notes: "Benetton achieves this by creating value for all those who deal with it. This includes, first and foremost the customer. The company satisfies suppliers and distributors who are often neglected" (2). Benetton's competitive strategy enables it to manage the value-added network (links with manufacturers, retailers, suppliers and distributors) in an effective and integrat

Related Essays

Benetton's Distribution Strategy Benetton has decided to reinvent itself by integrating and centralizing its global network of suppliers and distributors while defying conventional wisdom in .... (729 3 )

Benetton Company Advertising The advertising of clothing by the Benetton Company has become a controversial matter because of the way that advertising has used social issues in different .... (2745 11 )

Italian Knitwear Firms Italian knitwear firms use an anci .... it is argued that Italian home production in this industry has shown that it can be as efficient as the factory production of knitwear represented by Benetton. .... (1479 6 )

Advertising Campaign This research examines ethics issue fronts presented by the January 2000 United Colors of Benetton's advertising campaign, titled "We, on Death Row." The .... (2380 10 )

Sexuality in Advertising .... Another such company is Benetton. The advertising of clothing by the Benetton Company has become a controversial matter because .... (2107 8 )

Category: Business - B