When Luciano and Giuliana Benetton, both grown up under the harsh conditions of war and post war Italy, founded Benetton group in 1965, they probably did never dream that one day their company would among the most famous in the fashion industry. Yet, 34 years later, Benetton is present in 120 countries and Edizione Holding, the holding company of the family is now making a yearly turnover of XXX billion Lira1. Not at least due to their controversial advertising campaigns which sparked strong reactions around the world, from outright ban to art awards, Benetton has become known worldwide.
KNP shall before hand focus on an economic imperative by applying a world wide strategy; That shall find its base on segmentation, differentiation and cost leadership that in the global market should be successful. KNP products are generic, consequently it doesn't have to be sold based on the name brand or support service. This characteristic make it more difficult to develop differentiation that can be used as a competitive advantage; other steps needs to be developed so that KNP should take are addressing the political imperative, emphasizing quality imperative and implementing coordination strategy.