PRUDENCE AND AUDACITY: THE HOUSE OF BERETTA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

PRUDENCE AND AUDACITY: THE HOUSE OF BERETTA Case Solution

Introduction

The company was founded in 1526 by the first Beretta which given the name to the company of Beretta group. The culture of the company is based on innovation and new idea generation. However, this culture was first generated by the owner appreciated the idea of an employee to innovate the production facility and changed a bit process in the same area. Moreover, the first owner passed this trend to his two sons, who further continued the business and when one brother among them died the second one became the owner of the company.

However, these two brothers didn’t left any legal heirs and therefore, the company was taken over by some of their relatives. Another aspect of the company’s culture is that the firm aggressively focuses on its competitors and their moves while making sure that the company has a terrific strategy to overcome those competitive threats and if the company fails to do so and aggressively face competition by a single competitor the company tries to acquire that competitor. This diversification strategy allows the company to stay competent while making sure that it has the most innovative and advanced technology and business processes.

The company’s current lines of activities include arm, sportswear, and other related goods. However, the main business of the company depends on Arms and Ammunition. The company is currently active in almost 100 countries of the world but the main focus of the company’s business is towards North America and it counts for almost 70 to 80% of the revenue.

”In addition, the mission statement of the company suggest continuous innovation while the vision of the company is to give the most competitive and appropriate offerings to its respective customers”

Internal Analysis

SWOT analysis

In this section, the analyst will make the SWOT analysis of the company to make an understanding about the Strengths and Weaknesses of the company. However, Opportunities and Threats also falls in the same domain but the analyst is doing SWOT analysis internally. Therefore, only Strengths and Weaknesses will be evaluated in this section.

Strengths

Beretta has several strengths which make the business valuable and efficient for the owners as well as the employees since the business model of the company is wonderful which emphasizes on continuous product innovation and process improvement (Kaizen). Furthermore, it can be seen that the basic and the most valuable strength of the company is innovation and continuous system and process improvement. Moreover, this strength counts a lot for the company as, the company does continuous improvements to its manufacturing processes as well as it also reengineer them when needed. In addition, the company aggressively works on continuous innovation to stay ahead with the competitors and to compete in the Arms industry successfully.

In addition, the company also has a significant learning and experience curve which allows it to pursue continuous innovation and finding new ways to leapfrog towards the next generation technology. This strategy also ensure radical gains in margins as well as the competitive position. However, the company also achieved economies of scales while having the most skilled labor which reduces its fixed cost and ultimately contribute a lot towards the revenue generation and margin recognition.

Additionally, the company has reduces cost of labor which also enables it to make more profits and ultimately the company gains competitive reputation by innovating its products and processes. On the other hand, the company has huge domestic market which ensures high revenue from the local regions and because of the company’s reputation and brand equity most of the Arms sales goes with Beretta. Moreover, the company has an excellent diversification strategy which indicates that the firm usually buy those competitors which are threatening it. However, the company also has profitable and experienced business units raging form the Arms to Hunt dresses etc....................

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