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Da Impresa Radicata nel Territorio a Rete Globale. La Ristrutturazione del Gruppo Benetton
[Towards a Global Network. Competition and Restructuring of the Benetton]

Author

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  • Tattara, Giuseppe
  • Crestanello, Paolo

Abstract

This paper investigates the strategy changes of the Benetton Group who have been facing severe intense competition in the international fashion market since the mid nine-ties. New competitors, in particular the European brands Zara, Mango and H&M, have challenged the Benetton position in the Italian and European clothing market, pushing the Group from Ponzano towards adopting politics of cost reduction through globalisation of its suppliers. Benetton has always been considered a vertically integrated producer which controls (in different ways) the whole value chain from textile raw materials to consumer sales. Until 2000, Benetton produced its goods in its own factories and through a vast network of national sub-contractors mainly specialising in the sewing phase. Today, Benetton has drastically changed its strategy, almost completely abandoning Italy with a chain of value organised around a dual supply chain: fast productions are delegated to closer locations (Eastern Europe and Northern Africa) while locations further afield are commissioned for more standardised products and accessories (Asia). This article also discusses the impact these choices of productive de-localisation abroad have made on the Treviso apparel district, where Benetton's traditional subcontractors have been drastically curtailed. Benetton restructuring marks the transition to a new net-work of competences between agents.

Suggested Citation

  • Tattara, Giuseppe & Crestanello, Paolo, 2008. "Da Impresa Radicata nel Territorio a Rete Globale. La Ristrutturazione del Gruppo Benetton
    [Towards a Global Network. Competition and Restructuring of the Benetton]
    ," MPRA Paper 12553, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12553
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    File URL: https://mpra.ub.uni-muenchen.de/12553/1/MPRA_paper_12553.pdf
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    References listed on IDEAS

    as
    1. J. Finger, 1977. "Offshore assembly provisions in the West German and Netherlands Tariffs: Trade and domestic effects," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 113(2), pages 237-249, June.
    2. Finger, J M, 1976. "Trade and Domestic Effects of the Offshore Assembly Provision in the U.S. Tariff," American Economic Review, American Economic Association, vol. 66(4), pages 598-611, September.
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    Cited by:

    1. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.

    More about this item

    Keywords

    Global value chains; Benetton; Apparel; Clothing; District;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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