On the 31st of May 2012, subsequent to 36 years on the Milan Stock Exchange, Benetton was formally delisted and taken private by Edizione, the Benetton family's holding company. Since 2000, Benetton investors had seen its market value fall from $4.3 billion to $720 million at the end of 2011. What happened to this world-wide retail giant?
Under the direction of four distinct CEOs since 2000, Benetton had attempted to move from being an Italian provider of knitwear with licensed small-scale retailers throughout the whole world to a vertically integrated global player by rolling out directly managed superstores and stiffening management over its supply chain. These moves assisted Benetton increase more power over its operations, however in addition they ate into its profitableness. In 2012, Benetton found itself competing with trend giants who could react quicker to marketplace trends and give clothing that were comparable at half the cost. With Benetton under private ownership, would Harvard Business School grad Alessandro Benetton be able to make the changes required to return the company to its former strength?"
PUBLICATION DATE: May 29, 2013 PRODUCT #: 713513-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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