Whichever company has a bett location has a better advantage and a higher

Whichever company has a bett location has a better

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a particular field.” Whichever company has a better location, has a better advantage and a higher chance of innovation. The Swiss watch company does have a location advantage due to the brand being a more luxury item. Consumers want to know that they are paying for the authentic item and are willing to pay more for the location. The same goes for the Italian eyeglass company, consumers are willing to pay more money knowing that the items are hand crafted and it is good quality. By placing these companies in these locations they are using this as a strategy against its rivals. When it comes to the demand buyers in Italy, they tend to be one of the most sophisticated buyers in the world. A majority of the companies are luxury brands who have a image to uphold with the consumers. However, the Swiss watch location in Switzerland, they do not have the same level of demand that the italians do. They have a strong concern for safety, environmental quality and public welfare. For the Italian Strategy and Structure their companies are usually medium-sized or small firms. If italian companies have rivalries, they tend to be personal making them an intense and emotional situation. Question Two The strategies that the Italian firm Luxottica has used to led them to dominate high end
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eyeglass frames is they have created a monopoly with the eyeglass frames. They have used a vertical integration strategy. While they have put themselves into a position where they control the market and they have eliminated everyone else from competition. Luxottica obtaining other company’s they have put themselves into a position of power. They’re in a powerful position because there is no one else for consumers to turn to, making the company one of the only options. This allowed them to set whatever prices that they wanted to. Luxottica has acquired the company’s Pearle Vision, Sears Optical, Sunglass Hut, and target optical. Luxottica also specializes in distributing designer brands. This is another strategy that has led them to dominate is the fact that the company has attained high end brands, such as Armani, Burberry, and Chanel.
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  • Spring '18
  • Nathalie Virem
  • Luxury good

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