The Italian firm Luxottica was following a vertical integration strategy in the luxury eyewear business. The company designed and manufactured eyeglass frames and sunglasses under numerous brands. Luxottica owned some of these brands including Oakley and Ray-Ban, but licensed others such as Coach, DKNY, Prada, Ralph Lauren, and Tory Burch. Luxottica managed its own wholesale distribution networks, which sold to independent boutiques and optometrists, as well as retailers owned by Luxottica.

The company owned and operated Lens Crafters, Pearl Vision, and Sunglass Hut in addition to several other retail chains. The company's very limited capabilities in the area of lens production were primarily in the area of non-prescription sunglass lenses.

Consider Luxottica's existing strategy based upon Piskorski's tests in the reading "Note on Corporate Strategy". What would need to be true for Luxottica's current vertical integration strategy - incorporating design, branding, production, wholesale distribution, retail - to be a good idea according to Pirskorski? Do you think it would pass these tests? Why or why not?

Answer rating: 100% (QA)

According to Piskorskis tests outlined in the reading Note on Corporate Strategy for Luxotticas current vertical integration strategy to be considered ... View the full answer