Luxottica
1. COMPETITIVE ADVANTAGES Management of Luxottica Group considers the following factors to be key to its success, past, present and future. Vertical integration has allowed Luxottica Group to become the worldwide leader in the optical industry and to manufacture high quality eyeglasses with the lowest production costs and the highest margins. All significant components of the eyewear production and distribution process are managed internally: Design Prototype manufacturing Product development Production of moulds and individual parts of the frames Production of crystal and polycarbonate lenses for sunglasses Worldwide distribution through an extensive distribution network, both wholesale and retail. Efficient and flexible manufacturing facilities allow the Group to fulfil the needs of the optical marketplace in a timely and cost-effective manner, all of which while also being able to react promptly to changing market trends. The Italian manufacturing facilities are ISO 9001-certified, highly automated and rank among the most efficient in the optical industry Each facility is tailored to a specific production technology, thereby enhancing both the productivity and quality of products and operations Total control over all key phases of production allows for swift improvements in the manufacturing process and research of new operating techniques, while stimulating technological development and improving quality To ensure product quality, each prescription frame and sunglass undergoes several stages of inspection, resulting in a return rate for defective merchandise that is below one percent An advanced order and inventory control system allows Luxottica Group to closely monitor inventory levels. Broad and diversified product lines has over the years allowed the Group to play a significant role in setting new trends, the most important of which was changing the consumers perception of eyeglasses, from merely a vision aid to a fashion accessory. Luxottica Groups product lines represent one of the largest collections of frames available on the market Emphasis on design and continuous development of new styles to meet changing fashion trends and consumer preferences.