2. Situation Analysis
Problem Statement
Options
Criteria
Options Evaluation
Recommendation
Action Plan
Contingency Plan
3. Benetton is a very successful clothing brand
with mass following in Italy with expertise in
the field of knitwear.
The case describes the strategic and
competitive advantages of Benetton,
which have allowed it to maintain a
foothold in the Italian market for a long
time. However, with increased competition
their profits have considerably dropped in
the recent years.
4. The dilemma for the management team of
Benetton is to decide between expanding
in Europe or in other geographies like US or
Japan
The expected sales growth in Europe is 15%
whereas there is a significant opportunity to
open more than 1000 retail stores in the US
The decision to expand in the US is to be
made after evaluating the pros and cons of
the expansion
5. The problem for Benetton is tackling low
profits in Italy though expansion in rest of
Europe or through exploring new
territories like US and Japan
6. Option 1: Benetton can choose to
expand its market into U.S and increase its
global visibility
Option 2: Benetton could seek to add its
other new ventures such as perfumes,
shoes by outsourcing of manufacturing
Option 3: Could opt for change in
product design and diversify into other
related clothing like underwear, hosiery,
etc.
7. Effect on long term growth prospects of
the company.
Effect on revenues, market share and
brand equity.
Effect on company's core strengths (as
in, its unique pricing, retailing, store
location, manufacturing strategies) and
values.
8.
9.
10.
11.
12. Find a suitable partner for supplying new
quality product lines for respective
products
Label it with Benetton logo
Distribute using existing Benetton
channels
Allocate enough shelf space
Advertising to be clubbed with clothing
products
13. Could opt for change in product design
and diversify into other related clothing like
underwear, hosiery, etc.
