Analysis of Boffi's international strategy Essay

Words: 5882
Pages: 24

3O1LON International business
Boffi: Managing internationalisation in luxury goods

Executive summary:

Nowadays, being competitive isn’t an option but more an obligation.
Through this report, we identified the well-known Italian Boffi, specialised in kitchen and bathroom industry. How Boffi did to be one of the most important Italian producers of kitchens and bathrooms in the luxury field? What was its strategy? How can they improve their sales and market share? Those are the question that we tried to answer, with some theoretical aspects as the five competitive forces and the value chain or Porter or even the SWOT analysis, without forgetting the PESTEL study and some concrete examples. By analysing the
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Boffi enters the bathroom sector with the impulsion of Antonio Citterio (Art director) a synthesis between storage and high tech.

Earn higher margins and profits; comparing to the product they are making, goods are extremely expensive. (Price for a kitchen, first price: 15 000 E, average prices: 50 000


Gain new ideas about product, in Japan they had to change their raw material
(wood/eco-wood) production. It was very difficult there because of the country’s law.
Afterwards they take the substitution material as theirs main material thank to its qualities. Boffi’s distribution is quite selective, the firm got few own stores (20) but also indirect stores, retailers in Italy and internationally as well.

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III) Micro Environment

Boffi set up a specific strategy in order to differentiate itself from the other competitors, its core activity is composed of three areas (kitchen, bathroom and systems in 2008). The thing is that in
Italy, especially in the kitchen industry, they were 908 SME’s in 2008, the region of Lombardia where Boffi is located count a lot of artisans and industrials producers, so the firm has to deals with all those competitors and even make it strength. In the market luxury, Boffi is known for its knowledge in kitchen designing, and it is important to know what differentiate Boffi from