Benetton Swot Analysis

Companies
Benetton
Benetton is a global fashion brand, established in Italy since 1965. Benetton has a network of about 6,000 stores in the main international markets, as well as having over 10,000 employees. It operates in Europe, Asia, America ect. Total revenues in 2011 were about 2 032 million, where most of the revenues came from Italian stores 44%, 34% other countries from Europe, 16 % from Asia and 4% from America. Benetton Group products include women swear, menswear, children swear, and underwear, and they have expanded into perfumes, stationery, eyewear, and travel bags.
Economic and strategic factors that affect ROE are:
1. Benetton operates in the retail industry, which is affected by the business crisis in 2008 and 2010-2011.

Marketing & Design: one of the main strategy of the Benetton is to strength its brand. The Group's principal focus is on product quality, assortment and presentation, store ambiance, customer service, sales and marketing plans. It also competes for the most attractive commercial sites and terms of store rental and purchase. Their actions are designed to develop the existing commercial network and to strengthen their brand. Benetton aims at: identifying appropriate markets and locations for new stores; maintaining expected levels of customer service; managing inventories on the basis of effective needs; delivering goods in due time. They have reduced the budget in tv campaign and have focused on sponsoring sport. Also they have undertaken a new Store redesign with a strong focus on factors such as furnishings, product display, frequency of new window displays and the construction of focal points within stores for attracting consumer attention. They have started 2 campaign on social media: It’s my Time (2010) and UNHATE Foundation (2011), which made a directly communication of Benetton with young costumers to be part of

Cap Etam: is one of the strategies used in order to recover the crises in 2008. Following the managers’ and management committee’s decision in October 2008 to refocus the Group’s business activities the Group reviewed its action plans so as to whether the economic crisis and improve its operating profitability. In the first quarter of 2009, the «Cap Etam » action plan was launched as part of the review conducted with the support of an internationally renowned management consulting firm. The plan, which contained a number of measures to cut costs and enhance productivity, is being gradually rolled out over 2009 and 2010 with the aim of enabling the Group to improve its competitive position, profitability and cash flow in the long term. That’s why the operating expenses and other expenses are in the same levels during