Benetton Enhances Communication in its Value Chain

That strategy no longer appears in a position to sustain the company's presence from the market. The business risks seeing its locations suffocated by aggressive marketplace penetration methods of its international competitors whose retail outlets have a significantly larger average size. Under the aegis in the Retail Project, Benetton has opened over 100 mega stores around the world, developing a network of shops that are directly owned and operated by Benetton. Benetton (2) states that its goal in this strategy is to provide direct interaction with its major reference groups of buyers though providing new opportunities for capitalizing upon existing distribution relationships. The company has begun directing operations through a centralized retail program along with ongoing relations with external retailers (Evans, 4). A high support channel just isn't required to make certain product or service diffusion, but Benetton's determination to make specific retail outlets and to capitalize upon e-busine

Vertical integration of all aspects from the production and distribution chain is an instance of Benetton's new strategy and also a divergence from market practice. Higher external flexibility is getting produced feasible by a more rigid organizational structure, tighter control in the offer chain, and full exploitation of size effects. It is anticipated that these techniques will assist Benetton in moving forward in an era of globalization and enhanced competition from its many rivals. This distribution strategy was created in response to industry conditions.

Benetton continues to emphasize social responsibility which will undoubtedly be a key feature in its stand alone stores as well as its advertising and marketing and communication strategies. Benetton evaluates the success of its outlets while using choice rule of sales performance (Benetton, 3). It also garners info about consumers who use its

 

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!