The Benetton group

Founded in 1965, the Benetton Group started with limited resources that necessitated the strategy that ultimately resulted in rapid international growth. Since the beginning, Benetton concentrated on devoting its skills to the design and manufacture of quality clothing instead of providing direct consumer retailing. Benetton established a competitive advantage by establishing its brand as the best-known Italian apparel manufacturer, concentrating mainly on fashion-conscious young consumers from their mid teens through mid thirties. Since almost 85% of its …

…oducts ordered at the beginning of the season) to China for export as capacity is increased. Because of cultural and business differences, Benetton must find a well-established Chinese garment manufacturer with whom to form a joint venture (a Stage 3 venture) as the first step in its entry into China. While the Chinese partner will provide labor, manufacturing facilities, and a distribution system, Benetton will provide technology on cost and quality control, product design, and marketing.