Benetton group: The evolution of a network to face global competition

Résumé du document

Benetton's story has started in the 1950s from the "idea of color?. The family holding group has been established in 1965. Over the ongoing decade, the first factory and 1000 shops opened worldwide. Benetton has grown through a unique network organization which is flexible and innovative, as a worldwide famous business model with an exceptional competitive advantage. Furthermore, it established its worldwide reputation through a brilliant marketing and communication strategy. Entering in the new millennium, Benetton is one of the largest garments producers and retailers. Present in 120 countries, with 7000 employees, worldwide stores and manufacturing facilities, it raises a $2 billion turnover.

Extraits

[...] Business Environment Evolutions And Reasons For Changing Benetton's Approach The P.E.S.T. and business environments have moved during the Benetton expansion period. Face to these moves, it has been required to adapt its business strategic approach. The Benetton's diversification led to diverse competitive industries with different logics than the core business one, especially within innovative strategic approach. It has managed it more by anticipation than by reaction with a well interpretation and adaptation to overcome the new competition's drivers. Emerging challenges such globalization and N.I.C.T. [...]

[...] Beside, the labor-intensive production was relocated to low-cost nation producers. The sportswear production control management was also concentrated at the Castrette pole seeking for synergies with the casual wear. Retail Networks: Previously, the distribution was managed by Benetton Sportsystem European Subsidiaries. Now on, it is incorporated to Benetton group for a commercial and marketing synergy. Thus, it increased the direct control and monitoring of the market, and enabled a closer relation with major customers (world distribution chains). The concentration process reduced fixed costs of intermediary structures (trading companies) replaced by agents, and the stock-holding costs (warehousing). [...]

[...] It involves product-mix and volume flexibility, plus a highly cost efficiency. In term of distribution, the trend is to enlarge sales space (Megastores) to display the entire product range and optimize the turnover per square meter. The customer relation has been reviewed as well, within a new communication, image, and philosophy approach. Then, we observe new aggressive market penetrations, and innovative competitors' strategies in this industry. Also, the fashion environment is unpredictable and fast moving. It requires to be close to the market, flexible, and fast to react (reducing lead time). [...]

[...] Benetton group: The evolution of a network to face global competition Introduction Benetton's story has started in the 1950s from the “idea of color”. The family holding group has been established in 1965. Over the ongoing decade, the first factory and 1000 shops opened worldwide. Benetton has grown through a unique network organisation, flexible and innovative, to stand its successful worldwide famous business model as competitive advantage. Furthermore, it established its worldwide reputation through a brilliant marketing and communication strategy. [...]

[...] It also renews its offer approach, reducing the classic biannual production, to increase the flash collections flexible to the market needs. In order to be more agile and pragmatic, Benetton adopted the postponement strategy which pre-booked production and logistics and take the last specifications at the last moment possible, reducing the lead time and getting faster marketable. Supply and production management Nowadays the supply chain requires to simultaneously optimized flexibility, speed, quality, logistics, and costs. Thus, it tries overcome communication, coordination, consolidation of smaller orders, and the use of trusty intermediaries' relationships. [...]