Benetton's Diversifications

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR145 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges


Unrelated Diversification
Case Length : 18 Pages
Period : 1980-2004
Organization : Benetton's
Pub Date : 2005
Teaching Note : Available
Countries : Italy
Industry : Diversified


The Benetton family had its humble beginnings in a small town selling handmade sweaters. The handmade sweaters business gradually became a highly successful international clothing business. After achieving such success, in the late 1980s the family began diversifying into various other businesses. The family had set up Edizione Holding, a holding company, which held their clothing business run by the Benetton Group and all the other businesses they acquired. The case examines each of these diversifications and how they have fared. It looks into the issues each of these companies have faced and how they have dealt with them. Particularly, the case examines the problems Edizione holding faced with the Competition Authority, on diversifying into the motorway catering business and highway operation and management businesses.


Understand how a successful company can manage diversifications unrelated to its core business

Understand the risks of a perceived synergy between the core business and unrelated diversification failing to materialize

Understand the issues a company faces when two of the businesses it has diversified into are dependent industries


  Page No.
Introduction 1
Background 1
Benetton's Diversifications 3
Analysing Benetton's Diversifications 9
Exhibits 11


Case, Benetton Group, Edizione Holding, Benetton Sportsystem, Autogrill, Autostrade, Telecom Italia, 21 Investimenti, Italian Competition Authority, Benetton International Holding, United Colors of Benetton, Diversification, Organizational Culture, Host Marriott Group, Unrelated Diversification and Synergies.

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