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 the process (Camuffo, Romano, and Vinelli, 47). In response to a number of external influences, including enhanced competition, the aging of the firm's initial target market, and changing fashion trends, Benetton has determined that to remain competitive in the new globalized arena it must have firsthand contact with the end customer, respond in real time to market changes, and find new ways to ensure direct control over the supply and distribution chain.

Part of Benetton's strategy with respect to distribution is to enhance its communication with all actors in is value chain, to restructure its advertising efforts to less controversial, and to use ordinary people rather than models and celebrities in more conventional ads while still focusing on non-controversial themes as racial discrimination, poverty, child labor, and AIDS awareness (Benetton Group..., 3). Camuffo, et al (48) noted that Benetton's traditional

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Category: Business - B