GOGU ALEXANDRA IOANCEA OANA STEFANESCU ANDRA PREDA CORINA -gr.

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THE INTERNATIONALIZATION STRATEGY OF THE FIRMS
BENETTON CASE STUDY

1. Make a SWOT analysis for Benetton entering the Romanian market and propose the best internationalization strategy. STRENGHTS
World leader in design, manufacturing and marketing of distinctive casual apparel for men, women and children It has its own distribution of raw materials (lower production costs) It has a good image, a good reputation and it has a worldwide recognition It provides high quality customer services The company develops programs of corporate social responsabilities: AIDS campaign, capital punishment, sponsoring of sports (F1 Formula, rugby etc) Has its own communication center, R&D center = Fabrica Pluralistic view of things represented by the mix of people from different cultures, languages and attitudes It has a bimonthly magazine “Colours”, art-focused magazine that talks to young people around the world (appears in 50 countries)

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WEAKNESSES
The brand appeal has declined It has controversial ads It has expensive products It has no control upon their commercial partners

.- Longer time-to-market vs.g. Bershka. tariffs. there is a cheaper labor force. Pure retailers The brand is not very well recognized in Romania OPPORTUNITIES Expansion in emerging markets Benefits from local currency weakness Romania. low logistics costs In Romania. opening a plant in this country and manufacturing locally would be a great opportunity THREATS The clothing market is getting saturated and Romanians prefere cheaper and fashionable brands ( e. more aggressive marketing campaigns) in order to Maximize the Opportunities. provides the company with the advantage of no taxes. being in EU. Zara. we choose to apply the Mini-Maxi Strategy – Minimazing Weaknesses ( lower prices. Stradivarius) Expensive rent for stores Small market share Low PPP/capita The customers are not so educated in smaller cities In conclusion. adaptation of ads to Romania.

The profitability of the op (high numbers = fav orable ran .2. INTERNATIONALIZATION GRID Variables I. Respecting the propriety rig 2. Opening of the market II. Environment main factors Acceptable (A) or Unacceptab 1.

legislation and regulations and perspective of regulations. due to the problem raised by the property rights. marks the Risk each country has. The factors concerning the environment eliminates India. On the other hand. Russia and China have favorable results for this filter. internationalization problems.After applying the internationalization grid. thus under classing China and India with 17. concerning the losses in market division. Although India got less points than the other 2 countries. we found out that the best country for Benetton internationalization is Russia. respectively 16 points. . political instability. The profitability of the operation puts Russia on the first place with a total score of 18 points. The final filter in the internationalization grid.

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