1. Case Study:
- Benetton -
By: Camille TAPER

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

6. From Class: