Benetton’s Corporate Strategy

I. Introduction 2

II. Benetton Company 2

1. History 2

2. The company in figures 2

III. Dimension performance of the Group 3

1. Five forces framework 3

2. Holding 3

3. Corporate governance 3

4. Corporate culture 3

5. Scope of activities 3

6. Resources commitment 4

7. Corporate social responsibility stance 5

IV. Benetton competitive advantages 6

1. Value chain 6

2. Strategic capabilities 6

V. Two future scenarios 7

1. SWOT analysis and key drivers 7

2. Scenarios 7

VI. Strategic recommendations 8

VII. Conclusion 8

Benetton’s corporate strategy

I. Introduction

Our “Corporate strategy” course aims at presenting and analyzing ... Indeed, ….

Within this framework, we are asked to develop an analysis of one of….. To do so, we have chosen Benetton Company.

In this work, we will be developing X main parts. After having first presented the Benetton Company shortly, we will secondly describe the dimension performance of the Group. In this part, we will emphasize the ownership structure, the corporate governance, the corporate culture, Benetton’s scope of activities, the resources commitment and the corporate social responsibility stance. Thirdly, we will analyze the Benetton competitive advantages thanks to the strategic capabilities tool. A fourth part will be developing the two scenarios that may likely happen in the future. These both scenarios will be set up as a result of the SWOT analysis of Benetton. We will end this paper by giving recommendations.

Our methodology is based on researches in books and on the Internet. Moreover, we have interviewed one employee of Benetton Belgium in order to be more precise in our development.

II. Benetton Company

1. History

Benetton group is an Italian company created by four persons (Luciana, Giuliano, Gilberto and Carlo Benetton) in 1965 with the idea of color. Its core business is the fashion apparel. In 1970, the Group was using a business model making the difference thanks to their three main axes (unique, flexible and innovative). In 1980, Benetton communication campaigns were already known by everybody.

Benetton Group’s corporate headquarters is located at Villa Minelli in Italia.

2. The company in figures

Today, the Benetton Group is present in 120 countries all around the world. It owns different brands such as the casual United Colors of Benetton, the glamour oriented Sisley, Playlife American college style and Killer Loop streetwear. The Group produces over 150 million garments every year. Its network of around 5,800 contemporary stores around the world carries out high quality and complete collections, as well as a wide selection of accessories. During 2007, it has generated a total turnover of over 2 billion euro.

III. Dimension performance of the Group

1. Five forces framework

2. Holding

The Benetton family owns two holdings: Edizione holding and Sintonia .

Edizione Holding S.p.A. (registered office in Treviso, Italy) holds 121,905,639 ordinary shares, equivalent to 66.73 % of the total share capital of Benetton Group S.p.A.

The repartition of the share capital of Benetton Group S.p.A. is Edizione Holding S.p.A. 66.733 %, Institutional Investors and Banks 17.294 % and Individuals and Others 15.973 %.

3. Corporate governance

Benetton has adopted the Corporate Governance Code for listed companies . This system is based on principles fair and transparent management and disclosure. The Company has adopted the traditional system of corporate governance under which the company is governed by