...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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...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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...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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...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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...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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...Abstract LensCrafters Company started in 1983 a process of having eyeglasses made with an hour. Show great customer service 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...
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...NO | 1 | Introduction | 3 | 2 | Question 1 | 3 | 3 | Question 2 | 4-5 | 4 | Question 3 | 5-7 | 5 | Question 4 | 8-9 | 6 | Conclusion | 9 | 7 | References | 9 | Introduction Luxottica is an Italian firm who designs, manufactures and distributes prescription and luxury eyewear products. It has many in house brands such as Ray Ban, Oakley, Vogue, etc and holds licences for many high fashion brands such as Burberry, Prada, Polo Ralph Lauren, etc. Since 1971 the company has followed visionary internationalisation strategy through numerous acquisitions throughout the world. Through these acquisitions of various retail chain and wholesale distributors, Luxottica has been able to establish itself as a forward vertical integrated global firm. Furthermore the firm’s ability to manage and market its own brands around the globe presents us with a great example of strong brand development. “Today Luxottica’s worldwide strategy is mainly global with a high level wof standardisation and low adaptation. Do you see any room for adaptation strategies in price, promotion, distribution or products”. (Ghauri & Cateora, International Marketing, 2010) A strategy of high standardisation and low adaptation has certain benefits which are cardinal for a firm which is as large as Luxottica, a few of benefits being economies of scale in production and marketing plus a uniform brand image. These benefits provide the firms significant cost reduction in production and marketing, but...
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...various businesses, whether through acquisitions or organically Being a global leader in the design, manufacture and distribution of sun and prescription eyewear of high technicaland stylistic quality, Luxottica’s mission is multifold: to improve the well-being and satisfaction of its customers while simultaneously creating value for its employees and the communities in which the Group operates. Every collection and every pair of eyewear is the result of an ongoing process of research and development aimed at anticipating and interpreting the needs, desires and aspirations of consumers all over the world as sun and prescription eyewear are increasingly perceived as a desirable and expressive accessory to complete one’s personal look. Luxottica delivers on its mission through its vertically integrated business model, manufacturing excellence, focus on service and geographically diversified footprint, which in turn have led to greater efficiency, flexibility and speed in product design, engineering, supply chain, manufacturing and logistics, whilst being uncompromising in quality. The achievement of high standards of quality reflects the Group’s strong technical and manufacturing know-how -the fruit of over 50 years of experience - and its constant commitment to technological innovation, style and design and the study of changing lifestyles and interpretation of fashion trends. Quality and customer satisfaction are also the objectives of the wholesale and retail distribution...
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...Luxottica I pick Luxottica for my Market structures writing assignment paper. I have never heard this company before but they are the biggest manufacture of company in the world. Luxottica is the Monopoly company because they bought the small company to become the biggest company like I have learned in the class. Adrian Chirila stated that this company was started founded in 1961 and by the 80’s they started to buy any eyewear company in the world if they can afford it. For Monopoly market structure, there is no competition in any small firms. Monopoly market has power for making price. For example, when I plan to go to get my eyeglasses at the “America’s Best”, I should think about my finance all the time because it kinds of expensive....
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...1. Analisi degli scenari evolutivi delle Supply Chain di Zappos e Luxottica. Per analizzare le supply chain delle due aziende nei loro differenti stadi evolutivi ci siamo avvalsi del modello SCOR, limitandosi a considerare il solo livello1, che è largamente utilizzato per valutare i flussi logistici, i flussi informativi e le relazioni di mercato che intercorrono tra un’azienda ed i suoi clienti e fornitori. 1.1. Luxottica Plan - Il primo stadio evolutivo Supply Chain Luxottica parte negli anni 60 in provincia di Belluno, dove nel distretto “marshalliano” della occhialeria Bellunese Luxottica si afferma gradatamente come produttore terzista acquisendo e consolidando un elevato know how produttivo. Integra verticalmente prima le attività di design, poi la rete distributiva e retail sia a livello nazionale che internazionale. Avvia un processo d’integrazione orizzontale attraverso acquisizioni di brand concorrenti e accordi su licenza con importanti brand del mondo della moda Source – Le attività di source comprendono sin dal 1961 l’acquisto di materie prime relative alla produzione oltreché ai contratti di fornitura di energia, molto importanti nell’economia aziendale. Dal 1969, presentandosi sul mercato con prodotto proprio, nasce l’esigenza di rivolgersi al mercato per l’approvvigionamento delle lenti che vengono successivamente parzialmente integrate nelle produzioni del gruppo. Oggi la funzione acquisti ha il compito di assicurare un’ottimale pianificazione...
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...Ray-Ban Sunglasses Case Study Submitted by: Murtaza Ali 20057 Azika Gulraiz Sadiq 21062 Alina Naqvi 21654 Teacher: Mr. Faisal K. Qureshi EDC – 21 Saturday 18:30 to 21:00 QUESTIONS: 1. Evaluate the Dominant Economic Traits of the Tea Industry in Pakistan. 2. How Ray Ban is Using Music, Architecture and the Human Experience to Sell Sunglasses 3. Create IFAS & EFAS for Tapal Tea. March, 2015 Karachi, Pakistan IQRA UNIVERSITY INTRODUCTION Ray-Ban is a brand of sunglasses and eyeglasses founded in 1937 by American company Bausch & Lomb.[1] The brand is best known for their Wayfarer and Aviator styles of sunglasses. In 1999, Bausch & Lomb sold the brand to the Italian Luxottica Group for a reported $640 million.[2] HISTORY OF Ray-Ban The history of the Ray-Ban Aviator dates back to the 1930s, when new airplanes allowed people to fly higher and farther. Many US Army Air Service pilots were reporting that the glare from the sun was giving them headaches and altitude sickness. In 1929, US Army Air Corps Lieutenant General John MacCready asked Bausch & Lomb, a Rochester, New York-based medical equipment manufacturer, to create aviation sunglasses that would reduce the headaches and nausea experienced by pilots, which are caused by the intense blue and white hues of the sky,[3][4] a new kind of glasses were introduced. The prototype, created in 1936 and known as ‘Anti-Glare’, had plastic frames and green lenses that could cut out the glare without...
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...To what extent is “Luxottica’ monopoly a good thing? A monopoly is a firm which owns at least 25% or more of the market share. Monopolies are usually considered to be inefficient due to the lack of competition but is very desirable to firms. Luxottica has 7’000 retail locations worldwide and sells glasses either budget-minded frames or the more fashionably conscious more expensive frames. Luxottica is involved in 80% of all the worlds major eyewear brands production. So why is there large changes in prices between two pairs of glasses manufactured by the same company in the same location and is it a good thing Luxottica has this much monopolistic power? Traditionally, a monopoly has been seen as a bad thing as it tends to be less efficient than companies who are forced to be as efficient as possible, due to the pressure other competitors put on them. In this case there aren’t any other eyewear producers to compete with Luxottica and therefore provide a pressure to force it to be as efficient as possible. Instead Oakley, Ray-Ban, Vogue, DKNY, Prada, BVLGARI and many other brands are all produced by Luxottica. Due to this lack of competition, the Luxottica will not benefit from dynamic efficiency which is efficiency which relies on investment in research & development, as a result will not come out with new products, new techniques or new process as efficiently as it would if it had pressure to do so form competitors. Consequently it will have increased costs and produce less...
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...most money possible by the end of the term March 19th, 2012. At the moment, I am profiting a total of $336.50 as of February 06, 2012 when the stock market had closed. From the start of this assignment I have invested in a wide variety of companies ranging from airplane manufacturers to healthcare. I am currently invested in three companies including Luxottica, Bombardier, and Novartis. I had been investing in Research in Motion, however they proved too unstable to invest in at the moment. The reason’s that I have invested in these companies is fairly simple, to profit large amounts of money in a short period of time while minimizing the risk of losing the money I have already invested. In my opinion these are very low-risk stocks that generate a large amount of profit during the set time given. Luxottica is one of the world’s number one eyewear manufacturers. They focus on premium quality and style for all of their buyers. The reason I have chosen this company is mainly because my father is in the eyewear business. He owns the optical store The Vision Clinic. Through his guidance I had landed on investing in Luxottica because eyeglasses are always needed and therefore the stock would rise in price more frequently than not. Bombardier manufactures regional and business planes. Initially I had chosen Bombardier as an investment because I had recently heard that they had received a big order of planes to be constructed for another company; however over the past four weeks...
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...France, the famous Ballet dance genre also originated in Italy. Fashion and Design ← The Italian fashion industry is one of the country's most important manufacturing sectors and one of the jewels in the crown of the "Made in Italy" brand. The majority of the older Italian couturiers are based in Rome. However, Milan is seen as the fashion capital of Italy because many well-known designers are based there and it is the venue for the Italian designer collections. ← Many of Italy's top fashion designers have boutiques that can be found around the world. Among the best-known and most exclusive names are Armani, Benetton, Fendi, Gucci, Versace, and Prada. Accessory and jewelry labels, such as Bulgari and Luxottica are also internationally acclaimed, and Luxottica is the world's largest eyewear company. Music ← From folk to classical, music has always played an important role in Italian culture. Having given birth to opera, for example, Italy provides many of the very foundations of the classical music tradition. Some of the instruments that are often associated with classical music, including the piano and violin,[20] were invented in Italy, and many of the existing classical music forms can trace their roots back to innovations of 16th and 17th century Italian music (such as the symphony, concerto, and...
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...Principle of marketing Individual assignment Brief introduction and history of RAYBAN INTRODUCTION Ray-Ban is a brand of sunglasses and eyeglasses founded in 1937 by American company Bausch & Lomb. The brand is best known for their Wayfarer and Aviator styles of sunglasses. The founder of the RAYBAN is Lester Belisario. It’s headquarter is in Milan, Italy and formally Rochester, New York, USA. The owner of the RAYBAN is Luxottica group. In 1999, Bausch & Lomb sold the brand to the Italian Luxottica Group for a reported $640 million. HISTORY The history of the Ray-Ban Aviator dates back to the 1930s, when new airplanes allowed people to fly higher and farther. Many US Army Air Service pilots were reporting that the glare from the sun was giving them headaches and altitude sickness. In 1929, US Army Air Corps Lieutenant General, John MacCready asked Bausch & Lomb, a Rochester, New York-based medical equipment manufacturer, to create the sunglasses that would reduce the headaches and nausea experienced by pilots, which are caused by the intense blue and white hues of the sky and then a new kind of glasses were introduced. The model was created in 1936 and it was known as ‘Anti-Glare’ which had plastic frames and green lenses that could cut out the glare without obscuring vision. The sunglasses were again remodeled with a metal frame and rebranded as the ‘Ray-Ban Aviator’. On May 7, 1937, Bausch & Lomb took out the patent, and the Aviator was born. In 1939...
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