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Management quality - Zara vs. Benetton group of companies.

   

Added on  2019-10-30

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Running head: Management Quality 1Zara vs. Benetton group of companies.Name:Institution:Course Code:

Management Quality 2Zara vs. Benetton group of companies.Sarah Vizard (2013). Benetton aims to restructure for clearer differentiation between brands in restructure. Retrieved September 9 2017. https://www.marketingweek.com/2013/11/29/benetton-aims-for-clearer-differentiation-between-brands-in-restructure/Sarah Vizard (2013) Product development and store management is a function that has worked across all its brands. The firm now seems like it will separate its teams and to work separately on each brand. The teams will take decisions that will be based in boosting growth of each brand instead of what might be best for the Benetton group as a whole. The Benetton’s company also rules out a new concept of each brand and currently testing in-store communication and merchandizing. This is a management strategy move aimed at rebooting the Benetton group and to also help them stay in competition with the Zara group of companies. United colors of Benetton are among the leading European fashion because it has edgy campaignads that worked on all stereotypes. It later lost its leading position to the Zara brand.Reuters (2017). Italy’s Benetton’s group of names new boss to help revive brand. Retrieved September 9 2017. www.reuters.com/article/benetton-management/italys-benetton-group-names-new-boss-to-help-revive-brand-id-US16N1H002FBenetton being an Italian clothing group named a new boss who is a fashion industry expert. This is a plan to help revive its brand in the growing competition from rival brand Zara. Benetton has really suffered over the years has finally decided to hire someone who is an expert in the fashion industry to revive their suffering wholesale department. The company is now embarking on rebuilding and restructuring that will be aimed on reducing its losses and taking its

Management Quality 3place once more as a leading fashion brand in the world. This is a good move to keep its rival theZara brand on its toes. In the 1980s Benetton group was the leading group in fashion, it has however not being able to compete with rapid trendier rivals such as Zara.Tony Barber (2012). Benetton’s tactics miss the big picture. Retrieved September 9 2017. https://www.ft.com/content/4533f712-8466-11e1-a3c5-00144feab49aThe Benetton group franchise system used to work initially when the company was still at its young days. It later lacked capital to enable it to operate in its own stores. This system later became the companies’ weakness that helped its competitor the Zara brand to take it spot globally as the number 1 fashion brand. The companies lack of control on how to independently distribute to a lot of countries and manage how it sold its merchandize. In fact it was an able to go hand in hand with the new upcoming changes and trends alike the Zara brand. Its competitor/ rival brand Zara happened to learn from Benetton’s mistakes by being able to easily respond to fashion changes in bringing new products to the maket monthly.Maelle Alquezar (2013). Why Benetton’s has failed to boost its popularity. Retrieved September9, 2017 www.wolfestone.co.uk/blog/why-benetton-has-failed-to-boost-its-popularity/The famous fashion symbol has been falling behind for a while now. Its major mistake was the lack of ability to bring in new products to the market in over two years while its rival Zara was releasing its products on a monthly basis. In the 1980s Benetton’s was famously knownfor its marketing campaigns that encouraged diversity. The company got comfortable in the leading position while other fashion brands worked hard and finally beat them and got the leading position. Other factors that contributed to the fall of Benetton’s group of companies is bynot owning up to 75% of its shops all over the world while the Zara brand owns all its shops in

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