Luxottica Group S.P.a - Cstr Course Project

3594 Words Nov 9th, 2010 15 Pages
Luxottica Group S.p.A
Competitive Strategy course project
Term 2

7/16/2010

Group C 15

Jince Joy 61110096
Manas Lodhavia 61110407
Piyush Nahar 61110236
Saurav Atri 61110185
Vikas Garikipati 61110187

Contents

1. Executive Summary………………………………………….........3 2. Introduction…………………………………………....................4 3. Strategic Issues analyzed…………………………………………..8 a. Luxottica’s position in the US market……………………….8 b. Gain of market share in the US and international markets…8 c. Strategies in the current economic scenario………………...15 4. List of Exhibits……………………………………………………20 5. Bibliography………………………………………………..........21

1. Executive Summary
The eyewear industry is both a medical
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The acquisition of Scarrone S.p.A., which had marketed the Company’s products since 1971 and which brought with it vital knowledge of the Italian market, was the first step towards the strategy of vertical integration.
Along with consolidation in the local market, the company also sought international expansion with the acquisition of independent distributors, the opening of branches and the forming of joint-ventures in key international markets. With expertise in production capabilities the company expanded into new markets predominantly by acquiring distributors in the target market, thereby gaining valuable insights into the market’s tastes and preferences.
EYEWEAR: A NEW FRONTIER OF FASHION
Throughout its history, Luxottica has invested in its products. The acquisition of La Meccanoptica Leonardo in 1981, the owner of the Sferoflex brand and an important flexible hinge patent, enabled the Company to enhance the image and quality of its products and increase its market share.
Beginning in the late 1980s, eyeglasses, previously perceived as mere sight-correcting instruments, began to evolve into "eyewear." Continual aesthetic focus on everyday objects and interest on the part of fashion designers in the emerging accessories industry led Luxottica, in 1988, to embark on its first collaboration with the fashion industry, by entering into a licensing agreement with
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