Italian Firms in America, Issues and Possible Solutions Essay

“The World of Ducati”: Minoli wanted to develop a global brand “The World of Ducati” that could appeal to a broader spectrum of customers. Minoli’s initiative was “moving from the mechanical to entertainment”. Supply of product that is differentiated [Grant p 222]

After reading the success of this turnaround, one point that I found very interesting and contributed to the company’s success is Minoli’s staffing method for Ducati. Not only did he strive to acquire intelligent and qualified workers, but also he emphasized passion and creativity in

In 1980s, Gucci had lost its appeal and became a tacky brand and was also in deep financial crisis. But Tom Ford raised Gucci from dead and found out the company’s leading status and maintains

Gucci, a brand known for its quality, luxurious and royal association was confronted with strategic issues which made the company take notice of its strategy of expansion and brand personality. The company was not only having concerns with their product line but they were lacking unified corporate vision and strategy after its acquisition of some major names like YSL. Due to which they started having loophole in their luxurious goods market discipline. Strategic concern for the company was how does the brand image cascade down in the target market and how does it rejuvenate itself is a management lesson.

As our world becomes increasingly interconnected, American companies have been expanding their businesses overseas, seeking new markets and new investment opportunities. These companies are seeking countries with a high GDP, strategic location, and a growing urban middle class. GDP, or gross domestic product, is the sum of value added by resident firms, households, and governments operating in an economy (Peng, 2016, pg. 5). Since GDP is an important measure of economic growth, nations with high GDP are seen as desirable markets in which to expand by companies seeking to grow their business overseas. These companies are also seeking countries with an accessible and advantageous location, as strategic location is imperative to facilitate ease in trading. Countries with a convenient location relative to the United States are good for business because of the low costs of transporting goods and because proximity between trade partners has the potential to stimulate trade. Lastly, a growing urban middle class typically equates with a growing economy. Historically, the middle class successfully amasses the most capital, be it physical (such as property) or human (such as education). This accumulation of resources by the middle class then increases the country’s overall GDP (Pezzini, 2012, OECD). A large urban middle class is also indicative of a politically stable country, since the majority of people have access to the goods and services they need and are thus less

Most luxury brands have been family-owned or -controlled and, consequently, were single-brand firms for the most part. However, mergers and acquisitions have been growing in the industry, with LVMH leading the way. Our strategic recommendation is to follow LVMH’s lead and acquire a multitude of diverse companies to build the Gucci portfolio.

It is hard to imagine that after the financial crisis swept across Europe, many great transitional enterprises had to face collapse and bankrupt while the luxury goods industry become more prosperous. Recently, the French luxury goods group LVMH announced their recent business condition. The volume of the first week in October had incredibly increased by 12% the previous week. The Hermes Corporation also said that in order to meet the increasing number of market demand, it would open 15 branch stores in the latter half of the year. These aroused some fierce debates, the public held a skeptical opinion towards the questions: How can the luxury companies maintain their positions? Why didn’t they strike down by financial crisis?

Automobili Lamborghini S.p.A., an Italian brand, is a manufacturer of luxury sports cars. Lamborghini’s production facility and headquarters are located in Sant’Agata Bolognese, Italy. As the Italian manufacturing magnate, Ferruccio Lamborghini founded the company in 1963 with the objective of producing a refined grand touring car to compete with offerings from other established marques such as Ferrari.

In 2008, as a result of the strain from the global economic recession, Italy suffered an economic decrease of 1.3% and followed in 2009 with a further decrease of 5.2%. Meekly entering a phase of economic recovery, Italy recorded a growth in GDP of 1.3% in 2010. Economic forecasts for future growth anticipate that Italy will continue to recover, albeit very slowly, and at a rate that is less than that of growth expected in the rest of the EU (U.S. Department of State, 2011). One must add, at this point, the most recent developments in the European debt crisis, particularly affecting Italy, are creating additional uncertainty for these assumptions. Mary Kay must consider whether Italy’s historical growth trends, as well as sluggish economic forecasts for the future, are significant enough in terms of sales and profit potential to warrant entry into this market. The business model, which relies on direct-selling to consumers, requires constant growth in order to garner continued interest from potential Independent Beauty Consultant candidates. The ability of Italy’s economy to produce enough wealth in order to allow for consumers to direct discretionary income towards purchasing Mary Kay’s beauty products is a vital component in

Doing business in Italy is very different than in the United States. “Set to move onto a slow, but steady, path of economic growth;” Italy, at first glance, seems to be a promising business environment with projected increases in GDP per capita in the coming years, according to Business Monitor International (“Italy Autos Report” 30). However, there are many cultural, administrative, geographic and economic differences that make the business environment much different than that in the US. Generally dominated by domestic carmakers, mainly Fiat S.p.A., the auto industry in Italy doesn’t look very appealing for new firms because of the high barriers to entry. However, foreign carmakers like Ford have managed to penetrate the Italian

Gucci is a multinational fashion brand based in Italy. The brand specialises in leather goods, clothes, and fashion accessories for both and women aged between 24 and 30 years. Gucci was founded in 1921 in Florence, Italy by Guccio Gucci (Gucci Official Site United States, 2016). The main purpose of this paper is to provide an in depth brand analysis of Gucci. The paper will investigate and evaluate Gucci’s vales and identity, and will discuss how successfully these are reflected by Gucci’s business model, supply chain management, and Corporate Social Responsibility (CSR) activities. In addition to that, the paper will critically evaluate Gucci’s brand identity (identity) in relation to its brand image (external).

Being a an international brand, there is a level of dependence on Italian markets with 90% of the stores situated in Italy and the equalisation crosswise over America, Paris and distribution over different countries of Asia, Europe, Canada and others. In spite of the fact that the model promotes luxury end products, it has been distinguished there is a related low level of client management which couples this recommending there is a need to take a shot at administration to guarantee a complete shopping background and guarantee rehash business inside of the current client base (Liesch, et al.,

Dallara Automobili SpA was founded in 1972 in Varano de’ Melegari, Parma (Emilia Romagna – Italy), by the engineer Gian Paolo Dallara. He is still the president of the company, and he has a lot of experience starting to work at Ferrari as soon as graduated at 22, and collecting a lot of skills and knowledge in Maserati, Lamborghini and DeTommaso, all of them well-known supercars manufacturer. At one point in time of his life, in 1972, he decided to build his own company following the dream of working in the world of the racing cars. Started alone in his own garage (as many of the most successful company in the world) he manufactured some cars body using his capabilities learned from his previous experiences. Years over years the new small company increase with a few handful of employees, specialized in designing and manufacturing

12 Analysis of comparative advantage of Italian fashion industry…………………………13 Niche market innovations in Italian fashion industry…………………………………... 14 The legal and physical infrastructure of Italy…………………………………………... 14 Status of research and innovation infrastructure………………………………………... 15 Cultural and linguistic impact of Italy on business……………………………………...

Goal of the project- Study of the brand- Gucci, its products, marketing strategies, the marketing mix and a critical evaluation of the study.