Luxottica is being considered as truly “dominating” the global market of eyewear industry. Such achievement suggests successful development of sustainable competitive advantages (SCAs). The focus of this case study is, therefore, to conduct internal analysis of the company to uncover its sources of SCAs and strengths. The company’s dominance of the market, though, is not without criticism. Being a large global company also contributes to some of the inevitable weaknesses. These possible weaknesses should be discussed as well to complete the internal analysis of the company.
Your tasks for this case study include the following:
1. Learn more about Luxottica from the company’s website, video report, and selected articles provided in the “Case Study 2: Luxottica” folder (available in the “Case Studies Materials” link) as well as other sources from your own research.
2. Identify and thoroughly discuss the company’s sustainable competitive advantages (SCAs) & strengths and their sources.
Note: Refer to Chapter 7 and 8 Discussion that you had completed and the conclusion provided as a guide in completing this task. What you have studied in Chapters 6-10 also can be helpful. Remember that there are multiple sources of SCAs/strengths. Therefore, research thoroughly information in all areas presented on the company’s website and carefully analyze the different aspects of the company.
3. Identify and thoroughly discuss potential weaknesses of the company.
Note: Think about the company’s business model, its global operation, and strategies that may lead to potential weaknesses.
4. Explain what key marketing strategies (addressing Product, Price, Distribution [Place], and Promotion) do you think allow Luxottica to achieve its dominant position in the market. Provide also appropriate justifications.
Note: Focusing on the four marketing elements, explain how the company offers products that are appealing to the market, use pricing to deliver relevant values and superior benefits to the consumers, distribute products to reach the consumers competitively, and promotes desirable image using effective communication.
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