Advantages Of Luxottica

Decent Essays
1. Corporate Strategy:
Luxottica Group are the world’s largest eyewear company, based in Milan, Italy. Their long-term corporate strategy is to create the best possible eyewear to satisfy its clients, and expand their market share by growing its various businesses, whether organically or through acquisitions1. The Company will continue to focus on the following strategic pillars: vertical integration, design and technological innovation, brand portfolio management, market expansion, financial discipline and the development of talented and committed employees1. Building strong brands that create enduring relationships with consumers is key to how Luxottica plans to sustain its business in the future.

2. The Scope Of the Firm
It’s clear that Luxottica prides itself on being a fully vertically integrated giant, which gives itself a distinct competitive advantage over its rivals as it has complete control over the entire value chain. There are many make or buy fallacies studied with regards to vertical integration, therefor one may be sceptical towards the idea of full vertical
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From my studies on Porter (1996) I believe this business model enables Luxottica to operate on a third order level of fit, as every activity performed in the company’s production process reinforces the next one, and as well as reinforcing each other each activity also reinforces the company’s strategy of producing the best eye wear possible5. For example the company has a centralized manufacturing platform that provides daily monitoring of global sales performance and inventory levels to meet local market demand, which helps reinforce the efficiency its high quality wholesale and retail distribution systems. A large portion of Luxottica Groups competitive advantage grows out of the tight fit of its entire system of
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