Company Analysis: United Colors of Benetton

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Company Analysis: United Colors of Benetton 1. Briefly summarize the main features of Benetton’s international strategy. Benetton’s Philosophy : To bring the network of the Benetton image- a global brand with a distinctly Italian personality- to the most prestigious shopping zones in major world capitals. Benetton believes that in this saturated market the customers already have everything they need and they have to be tempted by design, atmosphere, and by the quality of in-store customer services. A group that strongly believes that customers should have an inspiration for their purchase. Benetton’s International strategy is based on the above philosophy and it can be broadly classified in four different parts. 1.…show more content…
|Year |Net Income/Profit(EUR m) | |2000 |243 | |2001 |163 | |2002 |-10 | |2003 |108 | |2004 |123 | |2005 |112 | [pic] ➢ Year 2000 registered highest profit largely due to the extraordinary income derived from the sale of the formula one team. ➢ Though the revenue for Benetton rose in 2001 the net profit drop by 32% largely due to the unsatisfactory performance of the sports division. ➢ 2002 saw all time low net income at -10(EUR m) because of the sale of sports brands. ➢ Year 2003-04 saw substantial improvement in the net income thanks to decisive reduction in fixed costs; overall efficiency improvement; reduction in labor costs and selling of the sports division. ➢ Year 2005 saw a marginal fall in net income because of the increased costs for expansion of the directly operated commercial network. |Year |Net Debt(EUR m) | |2000 |536 | |2001 |640 | |2002 |615 | |2003 |468 | |2004
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