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Giorgio Armani Case Study

In: Business and Management

Submitted By uejiasa
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Case Study:
Armani: Made in America?

Giorgio Armani has successfully established for himself a strong, longstanding name for himself in the luxury retail business, and in the process, has acquired millions of loyal customers who continually enter into his stores. His company is a leading fashion and lifestyle design brand with over 5,000 employees, 13 factories and 500 exclusive retail stores in 46 countries worldwide. Since the beginning of his company, Armani has made sure to remain loyal to his Italian roots: “His success, many say, is what really put Milan on the map, and—along with the Fendis, Missonis, and Versaces—he is often crediting with having made the “Made In Italy” slogan synonymous with excellence in tailoring and design”. In 1978, Armani signed a licensing deal with Italian manufacturing mega-company Grupp Finanziario Tessile to produce and distribute all of his collections and has remained loyal to this day. But has his decision to rely solely on GFT failed in growing alongside the worldwide expansion of his business? America has seen a large decline in the amount of positions that are available in the manufacturing business. Most companies have made the decision to outsource their manufacturing needs to international countries based off of the fact that employees are paid much less than those employed here in the states. It also rids the company of various other expenses e.g. fixed assets, varying wages demands, etc. Exploring the pros and cons of manufacturing here in America, it’s hard to come to a final decision on what’s the right decision and what’s the wrong decision.

I currently intern at Giorgio Armani in the Armani Junior department. I work alongside Brianna Busch, who is in charge of both retail and wholesales. Armani Junior was just recently introduced into the company, so its still small and growing. Bcuase of that,...

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