Luxocttica has kept up with their competitors and have figured out how to

Luxocttica has kept up with their competitors and

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Luxocttica has kept up with their competitors and have figured out how to expand their business. Italy’s Luxottica has officially merged with France’s Essilor. It is now in the competing market but merged with “the world’s leading maker of prescription eyeglass lense and contact lenses” putting them ahead of the few competitors that they have left. Luxottica’s competitive position in the United States is different from that of Swiss watch companies in the United States because the swiss watch companies are struggling to keep up with other companies that are disrupting the environment with innovation. While the Luxocttica brand has created a monopoly and is dominating the market. However, this monopoly has created smaller companies like warby parker to try to make a name for itself. I think that the Swiss watch companies faces the most competition in the US because they have other brands to compete with. They are no longer competing with just normal watch makers but now they are competing with smartwatch makers, such as Apple, Samsungs and Fitbits. The Swiss watch companies have to deal with competitors who are innovating new technology. They have to face the option of keeping up with their environment or staying true to
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their brand of luxury quality watches. Question Three Porter defined Clusters as concentrations of interconnected companies and institutions in a particular field. An example of clusters are the wine clusters in California. There is an estimated 680 commercial wineries and several thousand independent growers. Italy’s own cluster is the leather fashion cluster. The competition from China has been undermining the Italian Clusters. China has an advantage over Italy because they are willing to work for cheaper labor and ultimately this starts to affect the business in Italy. There is a furniture company that has been offshoring sofas to China as opposed to keeping the production in Italy. Italy’s sophisticated demand has lead them to have a specific luxurious niche. Italy’s clusters are becoming less and less as industries in China are starting up and taking Italian business.
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  • Spring '18
  • Nathalie Virem
  • Luxury good

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