Case Study Of Luuxottica

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The Italian firm Luxottica is relatively a monopolistic company that controls several aspects of the eyewear industry. Because its product can be considered as necessities or luxury items and because at least half a billion people are wearing its product, as what the CEO said, the company has the advantage of market share. Additionally, Luxottica is a firm that knows how to revolutionize its product. They made an “uncool” product cool by turning glasses into high fashion. Nevertheless, Luxottica can be regarded as a stealthy, powerful company. The company does not use its name as a brand and this makes people believe that they are buying eyewear from different companies. The company not only makes its products but also sells its products and…show more content…
Luxottica is big and manipulative and has been in the business for a long time. Big countries such as China, India, and Brazil are even buying from Luxottica. To beat Luxottica, an individual or company must have the resources, the relationships with numerous brand names, and the distribution centers to sell eyewear. Even if the video mentioned that Luxottica has competitors such as big retail stores like Walmart and Costco and emerging online companies like Warby Parker, these could not possibly beat Luxottica. The competitors may offer lower prices and have a focused market but they probably would not be able to win over Luxottica that easily. The video mentioned that Luxottica already owns Ray Ban and Oakley, the two top premium sunglass brands in the world. Other competitors are choked by Luxottica as well; if they make glasses, they would want to be in Luxottica stores and if they have stores, they would want to sell Ray Bans. Luxottica can essentially set any price they want. Perhaps if there are significantly more sellers who could show consumers that their products function the same way as Luxottica products and that consumers could afford these at a lower price with the same or better quality, then this could probably start breaking the monopolistic control of Luxottica. However, they would need to position themselves well in the minds of

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