Analysis Report of Benetton Company Essay Example | Topics and Well Written Essays - 500 words

Analysis Report of Benetton Company - Essay Example These are multinational companies that have been able to segment the market, position themselves strategically in the market, and attract the loyalty of the customers towards their products. In addition, these firms have outsourced their operations to different parts of the world. As a result, they are able to produce products at very low prices, an aspect that has been inserting pressure on Benetton Company to come up with an effective pricing strategy in order to retain its competitive advantage in the market (Maguire 2007). The companies are considered a threat to the future of the business. This is because they target the same market segment. In addition, they have a huge financial base which enables them to afford the rising advertising costs by the traditional media houses. In addition, they have diversified their operations to different markets across the world, an aspect that makes them to be financially stable (Maguire 2007). Benetton mainly sells women’s and men’s apparel, accessories, fragrances, and shoes. These are clients that are fashion-oriented and have a disposable income which can be used to purchase high-quality products by the firm. The major target market by the company is the young people. This generation accounts for the largest market segment in the whole population. The firm targets the young people who are at the age of twenty to thirty five. Through its internationalization program, the business has a customer base which emanates from different parts of the world. As a result, it publishes its magazines Colors in three editions and four languages. This is in an attempt to reach all customers irrespective of their race, gender, religion, and cultural background (Kapoor & Kulshretha 2012). This aspect has played a significant role in enabling the business to remain competitive despite various economic challenges in the world. Over the years, the Benetton Group has always