BENETTON S.W.O.T. ANALYSIS:
Benetton Group is considered a fully vertical integrated corporation. The company counts with a strong market position.
It has a good reputation.
Brand is recognized worldwide. It is a world leader in the design, manufacturing and marketing of distinctive casual apparel for man, women and children. Effective marketing strategy.
The group has its own center of research and development: Fabrica.
High cost structure.
Products are overpriced.
The polemical advertisement strategy may impact negatively on the customer's image of the company. The company sells almost 80 percent of its products through franchisees and partners at wholesale prices, less than half the retail value. Benetton hasn't been able to track demand and tweak merchandise assortments as well as rivals such as H&M and Inditex, which operate most of their retail locations. Because of its controversial campaigns Benetton’s retailers may terminate their contracts to avoid the loss of their customer’s confidence. Since Benetton is spread all over the world, the company doesn’t have a new geographical market to get in with the exception of the United States.
Improve its position and gain market share in the United States. Change its business model of making clothes seasonally in order to play with competitors who create fast fashionable clothes in only two weeks. Create discount stores to make its products more affordable and gain market share on different segments of the population.
Competitors like Zara, GAP, H&M have mastered fast fashion and produce high quality and less expensive products in only two weeks. Change in consumer preferences due the availability of trendy and affordable fashion clothes of competitors. Economic slowdown due to the aggressive competition and cost inflation. The rising cost of raw materials and the high cost of its business model may increase the price gap between its products...
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