2. Summary
Benetton was founded in 1955 by the Benetton Family, in
Treviso, Italy.
It started off by selling coloured sweaters door-to-door.
By 1970, they had built up 300 affiliated (but independently
owned) outlets in Italy.
By the end of the 2009 year, it’s revenues reached 2.049
billion €, and had a workforce of 900,000 employees.
It’s revenues are divided: 82% - Europe, of which 48% only
from Italy; 14% - Asia; only 3% - America.
Today it has over 6000 retail stores in 120 countries around
the world; and produces 150 million garments a year!
The Benetton family still owns nearly 70% of the company.
It advertises “lifestyle” rather than the actual
clothes, featuring AIDS, Capital Punishment, Inter-Racial
Relations, High Art and Attitude.
It sponsors many sports sectors
(F1, Rugby, Basketball, Volleyball)
They also own a magazine called “Colors”
3. Question 1
Is Benetton a Multinational Enterprise?
Yes…
It has activities in many countries: as describes in
the summary, they have built up a network of
more than 6,000 retail stores in 120 countries
All their affiliates have a common strategy and
can use the Benetton advertising from their
Communication Research Centre in
Treviso, “Fabrica”
But, can be argued that it is in fact an
International enterprise…
because all it actually does is export into other
countries, and doesn’t actually have any
working bases outside of Italy…
4. Question 2:
What are the country-specific factors that have
boosted Benetton’s Success?
IfI may say so, the Italians are very proud to be
Italians, thus they will definitely buy their own
nation’s products…
Also, Italy is known for Fashion, so there is a
stronger will to buy these clothes
Benetton’s CRC (communication research
centre) and all it’s other HQ bases are based in
Italy
Argentina’s space (900,000 hectares) for the
sheep to be raised
5. Question 3:
What are Benetton’s Firm-Specific Advantages?
Itis a family owned Firm
Production and design concept built on a
strong “home base”
Closely monitored independent stores
As said previously, Italy is often related to
fashion
Controversial Advertising
