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Marketing Strategy for Costa Rica
In order for companies to be global successes, they must first meet certain criterion. Firstly, leadership at home gives profitable foreign growth companies the cash flow and management resources to invest in international expansion. Building a strong core business requires management to fully understand the limitations of the core business, recognizing clearly which customers, costs and geographies are part of the core, and which are not. Foreign norms and local market knowledge are important and ?going global' can mislead companies that have not first understood the profit dynamics of their industry. Luxottica has clearly mastered these traits for its current global dominance in the designer optical markets worldwide.
Luxottica has used the strategy of adding new capacity through acquisitions to drive down returns through superior execution and used this strategy to become a world leader in eyeglasses. The company quickly recognized the importance of retail distribution for profitable growth: Direct access to eyeglass wearers provides unique data on what customers are buying, and allows Luxottica to market its own products. When the firm began to expand abroad, Luxottica managers looked for acquisitions to establish a strong presence in distribution or retail. With that in place, the company can begin to extract value through its integrated business ? the efficiency of its manufacturing and its expertise in marketing and product selection. A perfect example of this was Luxottica's acquisition of Lenscrafters and Sunglasses Hut, by far the most successful and lucrative made in the history of the company. Through the LensCrafters and Sunglass Hut Inte ...