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Course: International Business Case Study: Benetton in The Fast Lane Submitted To: Sir - Muhammad Ahmed Butt Submitted By: Ahtisham - Ul - Haq

This case study examines Benetton, an Italian clothing company that has expanded globally. Benetton operates over 7,000 retail stores across 120 countries, though over 80% of its production remains in Italy. As a multinational enterprise, Benetton draws on common resources and shares a strategic vision with its independently-owned stores worldwide. While Benetton benefited from close economic ties within the European Union, it struggled in the United States market due to cultural differences. However, Benetton has found success through provocative advertising that promotes a lifestyle rather than specific products.

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44 views

Course: International Business Case Study: Benetton in The Fast Lane Submitted To: Sir - Muhammad Ahmed Butt Submitted By: Ahtisham - Ul - Haq

This case study examines Benetton, an Italian clothing company that has expanded globally. Benetton operates over 7,000 retail stores across 120 countries, though over 80% of its production remains in Italy. As a multinational enterprise, Benetton draws on common resources and shares a strategic vision with its independently-owned stores worldwide. While Benetton benefited from close economic ties within the European Union, it struggled in the United States market due to cultural differences. However, Benetton has found success through provocative advertising that promotes a lifestyle rather than specific products.

Uploaded by

Pappu Pass Ho Gya
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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COURSE

CASE STUDY
LANE
SUBMITTED TO
BUTT
SUBMITTED BY

:
:

INTERNATIONAL BUSINESS
BENETTON IN THE FAST

SIR.MUHAMMAD AHMED

AHTISHAM - UL - HAQ

SUMMARY
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 parts of the manufacturing savings are done by outsourcing to
neighboring subcontractors.
Benetton is one of those successful global companies that were 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.
Benetton has its firm specific advantages in advertisements. It goes I for
cutting-edge advertising that grabs public attention. Benettons closely
monitored independent stores were able to use Benettons brand name,
distinctive colors and were supported by clever international advertising.
Benetton doesnt 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.

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