...Background of Luxottica Company Luxottica Group Company S.p.A is known as Italian eyewear organization which generates high quality, high technically developed frames and sunglasses. Having commenced from small workshop in Agordo North Belluno, nowadays Luxottica Group maintains about 80 per cent of eyewear brand throughout the world. The history of this not well-known brand for consumers started from 1961when Leonardo Del Vecchio founded Luxottica di Del Vecchio e C. S.a.S. The brand name has changed since that time became the new joint enterprise Luxottica S.p.A. From the first collection called International Optics Trade Fair in Milan Luxottica brand switched its status from contract producer into independent manufacturer (Luxottica, 2014). The high strategy and planning encourage the company to create vertical integration is explained by direct distribution of products to target market. From 1990 the company acquired different brands such as Vogue, Persol. Also in 1999 it started to make acquisition of world’s well-known brand Ray-Ban. Due to extensive marketing campaign Luxottica encouraged the Ray-Ban company to enhance sales and grow brand recognition. Later, the company acquired several companies such as Oakley, Arnett, Alain Mikli eyewear brand. Luxottica Group distributes the goods to more than 130 countries in the world. Moreover, company makes sunglasses and frames for variety and well-known brands such as Prada, Chanel, Burberry, Stella McCartney, Versace, Miu...
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...Individual case study report Luxottica: Internationalisation and Expansion Introduction Luxottica was established as a limited partnership with Del Vecchio as one of the establishing partners in Agordo, Italy in 1961. Luxottica’s recognition started from 1971 with its internationalisation strategy merging global acquisitions of retail chains and robust brand development. The founder of Luxottica Leonardo Del Vecchio took part in the Milan optics, optometry and ophthalmology international exhibition. Thats when Del Vecchio saw the significance of having direct control over distribution and started distributing directly in Europe and US. This was the turning point for the increasing exports, beginning of joint ventures and partnerships through local distributors in Europe and North America. The first subsidiary setup in Germany in the eighties, the first step to international expansion. Then a different growth strategy was developed for distribution. The move to a more direct strategy from an exported strategy was followed both to obtain local wholesale distributors and to directly setup distribution networks where essential. This change was determined by identifying the sharp change in consumer’s perception of glasses. Eyewear products were transformed with the profound promotion using famous celebrities, sports and movie stars. Eyewear products were no longer just medical product to improve eye sight or protect from sunlight. It had become a fashionable trend that was no longer...
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...COMPANY BACKGROUND Warby Parker is an American eyewear company that was launched in February, 2010 as part of the Venture Initiation Program by four students from the University of Pennsylvania. The company’s initiative was to sell cheap eyewear online combined with a good cause. Warby Parker believes that “everyone has the right to see” this idea lead to forming partnership with renowned non-profits – e.g. RestoringVision.org – to give a pair away to someone in need for every pair sold. However, it was not just the company’s generous intentions that made Warby Parker so successful for a start-up firm. Warby Parker’s brand is both trendy and classic providing high quality frames with best in class polarized lenses. As a way of cutting costs, Warby Parker decided to avoid middlemen and go directly to the manufacturers in China, circumventing traditional channels. The company is considered a made-on-the-internet brand: it has a huge presence of the internet and most of its advertising campaigns take place there, which constitutes an advantage, given the growing popularity of e-commerce and social network advertising. They started off as an online company however, in the past years they have also opened stores and showrooms in 15 location across the US with their headquarter in New York. BUSINESS MODEL CANVAS ARCHETYPE Warby Parker’s business is based on the low price and high quality of the products, the solidarity branch of their program and also on their online shop. To...
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...CASE STUDY Luxottica Retail Case Study Retail Executive Summary Challenge Use a robust hosted solution to provide a single point of contact for delivering on boarding, sales, procedural, compliance, leadership and continuing education courses to more than 38,000 employees in more than 6,200 locations worldwide. Solution • SuccessFactors Learning • iContent Results • Luxottica can now pick and choose highly targeted content – and pay only for courses that will be used. • Content can be purchased and available within 24 hours compared to the previous method that had up to a three month-long time frame. • Purchasing, catalog updates and reporting are handled by just one project manager and one system administrator. • Content and the SuccessFactors LMS contributed to the integrated talent management strategy that earned Luxottica eLearning! and Bersin & Associates’ 2008 Learning Leaders Award in the category of Learning Initiative Excellence. Luxottica Retail, a business unit of Italian eyewear giant Luxottica Group, is one of the world’s leading operators of optical stores. With both franchised and company-owned stores, its chains include LensCrafters, Oakley, Pearle Vision, Sunglasses Hut and in-store optical centers for Sears and Target, as well as optical manufacturing centers and wholesale divisions across the globe. In order to train and manage its diverse and geographically distributed 38,000 employee population, Luxottica has invested heavily in implementing job...
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...with doctors, laboratory technician and eyeglass frames in store locations. In this case study characteristics of LensCrafters will be reviewed on many levels. The topics of chose range from Customer Benefit Package (CBP), strategy and competitive priorities, service delivery system design, and service encounter design. In the readings below, the write has developed an analogy on LensCrafters. The analogy is based on LensCrafters’ case study from textbook and other resources. Introduction: History A subsidiary of Italy's Luxottica SpA, U.S.-based LensCrafters Inc. is the world's leading retailer of eyewear. Celebrating its 15th anniversary in 1998, the company was a pioneer of the "super optical" segment. Its’ phenomenal growth under U.S. Shoe in the 1980s culminated in Luxottica's 1995 acquisition. With over 700 outlets across the United States, Canada, and Puerto Rico, the chain boasts a seven percent share of the domestic retail eyewear market. The company was expected to cross the $1 billion sales mark in 1997, a tripling of revenues from 1987's $305 million. LensCrafters was founded in 1983 by Dean Butler, a 38-year-old who had previously worked at Procter & Gamble. Butler, whom also came up with the idea, frames ready within an hour. Strategy and Competitive Priorities LensCrafters’ mission statement is focusing on the customers. This means delivering outstanding customer service creating great Eyewear within an hour to meet customer needs and knowledgeable...
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...The owner of Luxxotica says “Everything is worth what people are willing to pay.” The company Luxottica owns mostly all sunglass stores with the exception of Walmart and Target. They design all brands of glasses to Ray Bans to Channel, to Ralph Lauren. Their best seller was Ray Bans at one point. Last year they took them completely off of the market. They were also very cheap. Now they are back on the market and are being sold from prices of $150.00 and more. On the show 60 minutes the lady was asking one of the owners of Luxottica and he was avoiding and dodging some questions. Sometimes it can be better not to say some things at all then to tell and give everyone your business. Their biggest competitor in America is Walmart and Costco because...
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...When a firm creates, formulates, and implements a strategy that adds value and competitive advantage that is a strategic business plan. A strategic business plan is the layout or outline that specifies how a firm is going to reach their plans or goals over a certain period of time. The plan can be very specific or very broad. It can focus on one part of the business, as well as a whole focusing on all functions within a company. This plan is important to an organization’s long-term success because it gives the company a direction or purpose in which to set goals and carry them out. A strategic business plan assists a company in providing products and services in a more efficient and effective manner. Without a strategic business plan a firm will have a difficult time maximizing the potential of its resources. New opportunities and key resources for growth or improvement will be limited or perhaps even missed. A strategic plan is important to both small and large businesses. I believe that for any company, no matter the size, it is equally important to have a strategic business plan in place. This will assist in understanding customer needs and be able to adapt to constant changes and new trends taking place within the company. With a successful strategic plan, a company has a great opportunity for becoming very successful. Innovation plays a key role in developing a company that has potential for growth and success. Innovation provides the company with ways to maintain a competitive...
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...OUTLINE a. Module learning outcomes b. Themes and topics c. Learning supports 3. MODULE DELIVERY SCHEDULE a. Session arrangements b. Student engagement c. Office hours arrangements 4. ASSESSMENT DETAILS a. Assignments b. Module assessment components i. Pre module assignment ii. Group project iii. Examination 5. GRADING a. University grading policy b. Grade descriptors for assessment components 6. CONCLUDING COMMENTS APPENDICES 5 6 10 12 16 19 21 3 Welcome message Welcome to this unit on Business Policy. Dr Yousef Eiadat will be joining me in teaching this course. In this unit we aim to build skills in Strategic planning – the analysis behind strategic decisions, the crafting of strategies and the implementation of them to ensure organisational success. Strategy involves managing the interface between an organization and its external environment. To this end, the first three topics develop skills in strategic analysis, leading to consideration of the positioning of an organisation in its strategic environment. These cover internal and external analysis, and the options in setting strategic...
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...TYPES OF MARKETING STRATEGIES MARKET LEADER STRATEGIES 1. Expand total market 2. Defend market share 3. Expand market share MARKET CHALLENGER STRATEGIES 1. Define strategic objective and opponents 2. Choosing an attack strategy MARKET FOLLOWER STRATEGIES MARKET NICHE STRATEGIES ================ A. 1. MARKET LEADER STRATEGIES EXPAND TOTAL MARKET • New Users E.g.: perfume:--> non-users (mkt-penetration strat) --> men (new market strat) --> other countries (geo-expan strat) E.g.: J&J Baby shampoo: birthrate declining --> ads target adults --> leading brand • New uses Cereals: as snacks --> increase frequency of use OJ: “not for breakfast anymore” Du Pont nylon: parachute-->pantyhose-->blouses & shirts --> auto tires -->seat belts --> carpeting Arm & Hammer: baking--> fridge deodorant --> quell kitchen grease --> carpet/pet deodorant --> bath tub relaxant --> toothpaste --> ???? • More usage: Michelin: want French to drive more --> rate restaurants (best in south --Provence & Riviera) --> publish guidebooks with maps and sights along the way 2. DEFEND MARKET SHARE • decide where to defend • continuous innovation along Mktg Mix Position defense: - purely defensive not enough --> must take offensive counter-measure Eg: Coke --> multi segments of cola mkt --> enter wine market --> acquire fruit drink companies --> desalination equipment --> plastics Flanking defense: - guarding territory not enough - create outposts/flanks: --> protect weak front --> invasion base for counter-attack...
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...clients. For many firms, the “80/20 rule” applies where the largest concentration (80%) of your revenue is being derived by a relatively small subset (20%) of your customers. These clients, due to the leveraged impact they have on your bottom-line and infrastructure costs, need to be carefully managed and made a key focus of your business strategy. This is equally true for a huge multi-million dollar conglomerate or a relatively small professional practice. While a continuing focus on new business acquisition is of paramount importance – “Grow or Die” – the strategy decision of how you marshal your limited resources of time, money and effort is a crucial one. Deciding to manage your top clients as “strategic accounts”, and investing your resources to build your relationships with them, provides a multiplier effect of benefits. To name a few: lowers acquisition costs for new business, engenders a higher level of customer loyalty, creates revenue stability and profitability enhancement, inspires ongoing future business, and develops a strong referral generator and free PR. Small businesses and professional practices can learn and incorporate strategies and practices from the larger, established strategic account departments of larger firms. Strategic account management is a mindset and a methodology, a series of carefully thought out decisions and processes that enforce and ensure that you truly place your top clients at the core of your business. This discipline needs to be internalized...
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...Strategic Plan Strategic planning is an important tool for any organization. By having the right strategic plan, a company could reach their goal as well as meet their customers’ demands. A strategic planning helps a company develop basic goals which company will try to reach in certain a time period. In the strategic planning, company will usually consider the mission statement, vision, and values of company. Through this paper, an individual will gain information how US Airways business, product the airline provide, and services US airways. The reader will also gain information about how US airways work on developing right mission statement. The reader will also gain information how important mission, vision, and values to US airways in direction of their strategic plan. Mission Statement The mission statement is short and memorable, like a catch phase. The purpose of a mission statement is to endorse the meaning of the company and associate with company business. The company main customer’s bases are individual who like to fly. The mission statement of US airways is “Fly with US”. It is very obvious that the company is an airline operator, providing travels all around the world for its valued customers. The mission state or the slogan “Fly with US” could vary with different meanings for individuals. The individual could perceive this statement in many different ways. An individual could look at US as top airline for United State . This could also mean by flying...
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...sure you have a strategy? Donald C. Hambrick and James W, Fredrickson Executive Overview After more than 30 years of hard thinking about strategy, consultants and scholars have provided an abundance of /rameworks for analyzing strategic situations. Missing, however, has been any guidance as to v^hat the product of these tools should be—or virhat actually constitutes a strategy. Strategy has become a catchall term used to mean whatever one wants it to mean. Executives now talk about their "service strategy," their "branding strategy," their "acquisition strategy," or whatever kind of strategy that is on their mind at a particular moment. But strategists—whether they are CEOs of established firms, division presidents, or entrepreneurs—must have a strategy, an integrated, overarching concept of how the business will achieve its objectives. If a business must have a single, unified strategy, then it must necessarily have parts. What are those parts? We present a framework for strategy design, arguing that a strategy has five elements, providing answers to five questions—arenas: where will we be active? vehicles: how will we get there? differentiators: how will we win in the marketplace? staging: what will be our speed and sequence of moves? economic logic: how will we obtain our returns? Our article develops and illustrates these domains of choice, particularly emphasizing how essential it is that they form a unified whole. Consider these statements of strategy drawn from actual...
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...Inbox My Profile What's New Help Logout Welcome Kimberly Raetano (IRN:9038043721) Home Classroom Library Program Account PhoenixConnect MMPBL/590 Materials Discussion Assignments Grades MMPBL/590 STRATEGIES FOR COMPETITIVE ADVANTAGE Start Date: 01/17/2012 Print COURSE DESCRIPTION This course focuses on creating the value proposition as a driver of sustainable competitive advantage. Topics include translating key emerging trends into business opportunities; strategic challenges of global expansion; opportunities and constraints posed by regulatory change; competitor intelligence; scenario planning/planning for multiple futures; maximizing core business value; differentiating the value proposition; distribution channel development and integration; tailoring the value chain; building successful strategic alliances; and off-shoring models and approaches. Week 1 - Topic 1: Mission, Vision, and Values Objectives Distinguish between strategy and tactics. Explain the essential components of the strategic management process. Analyze the relationship among leadership, culture, stakeholder interests, and strategic outcomes. Create vision, mission, and values statements. Materials MIND MAP Mind Map Concept Outline EBOOK EBOOK COLLECTION: Chapter 1 - Pearce & Robinson. (2005). Strategic management (9th ed.). New York: McGraw-Hill. EBOOK COLLECTION:...
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...Workshop 4 Problems Kevin Rock MBA 465 Strategic Management BSA 555 November 1, 2011 David R. Gray, Ph.D 1. Why are acquisition strategies popular in many firms competing in the global economy? Because of globalization; deregulation of multiple industries in many different economies and favorable legislation; the number and size of domestic and cross-border acquisitions continues to increase; especially from emerging economies 2. What reasons account for firms’ decisions to use acquisition strategies as a means to achieving strategic competitiveness? To increase market power; overcome entry barriers to new markets or regions; avoid costs of developing new products and increase the speed of new market entries; reduce the risk of entering a new business; become more diversified; reshape their competitive scope with different portfolio of businesses; and enhance their learning. 3. What are the seven primary problems that affect a firm’s efforts to successfully use an acquisition strategy? Difficulty of effectively integrating the firms involved; incorrectly evaluating the target firm’s value; creating debt loads that preclude adequate long-term investment; overestimating the potential for synergy; creating a firm that is too diversified; creating an internal environment in which managers devote increasing amounts of their time and energy to analyzing and completing the acquisition; developing a combined firm that is too large (thereby necessitating extensive...
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...Strategic Management Process Paper Vivian Shellmire MGT 498 March 21, 2011 Eligah King Strategic Management Process Paper The global marketplace has ushered in an emergent Era of corporate citizenship. Merging corporations often create an environment within a company where different structures coexist side-by-side. The reality, parties in collaboration tend to promote cultural capital. In fact, human nature is a factoring barrier making it a difficult challenge to retain highly esteemed talent and maintain production efficiency. Corporate responsibility obligates an organization to design a plan, a strategic process that fosters open-mindedness, confidence, passion, and optimism. A strategy plan incorporating mutual company goals, a philosophical mission statement, and an expected code of conduct can ensure consistency. A responsive way to alleviate conflict among parties would be to include a framework articulating clear concise policies, procedures, and implementation which emphasize corporate values and standards. General Motors Company for example, after acquiring partnership with Opel International encountered structural challenges. Opel’s (2011) promotion states, “We are inspired by the freshness and potential of unique talents. They excite our admiration and energize our emotion that is why we team up with new and established performers and support them, in their personal endeavors and the causes they believe in.” Ironically...
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