INTERNATIONALISATION AND EXPANSION

Luxottica: Internationalisation and Expansion



Luxottica: Internationalisation and Expansion

Introduction

Internationalisation or global expansion is the main change is in today's workplace. It stands for the economic interdependence between countries with cross-national exchange of goods and services, capital development, know-how and people. This entry contains in particular the organizational and human aspects of internationalisation (Melewar, 2003, 195).

It is not just a recent phenomenon. However, today commerce and financial services are much more developed and deeply integrated than in the past. The most striking aspect of this, integration of financial markets is made possible by modern electronic communication.

Eyeglasses have become such a key accessory in the fashion world that if you have not already, it is time to update your frames. High-fashion brands like Fendi with their latest edition of oat-eye shapes, and Ray-Ban with their retro styles have almost made it difficult to choose just one (Burt et al, 2002, 191). The Luxottica group is the largest company in the world operating, in the eyewear industry. The company has experienced successful international and expansion over the years, which has contributed a vast deal to its profitability and sustainability in both times of growth and recession.

The paper aims at analyzing the concept of internationalization that has occurred throughout Luxottica as a result of internationalization and ways in which these changes have influenced the company and its members.

Background of Internationalization and Expansion

The term "Globalisation" has a strong emotional charge. Some see Globalisation as a beneficial process - which will contribute decisively to global economic development - inevitable and irreversible. Others are hostile to this process (Gielens et al, 2001, 235).

Basically, Globalisation is not mysterious. The term is commonly used since the 80s where technical progress would make international transactions easier and faster (commercial or financial).

There was no concept of the world economy a couple of decades back. The prevalent view was that of international trade that comprised of international trade of goods and services, as well as, foreign investments (Porter, 1979, 214). However, the present international scenario depicts a global economy, which works on the principle of exchanges and flows of capital, human resources, information and technology amongst the different nations of the world (Harris & Chernatony, 2001, 441).

All these relationships have expanded the scope of global expansion and been the key to achieving growth and prosperity in the domestic economy.

Internationalisation is a period that recounts the expanding tendency in the direction of internationally incorporated markets and global interconnectedness, making nationwide boundaries less significant in periods of political, heritage, technological, economic, ecological and national security issues.

The complexity of defining internationalisation and the resulting social changes comes from the different related dimensions and a multidimensional character. In fact, the variety of meanings attached to it seems to be increasing rather than decreasing over time, acquiring cultural connotations, and political, technological, and other types as well as economic.

Internationalisation has made the world smaller than the space and time are reduced. It involves the rapid and large-scale dissemination of the dominant cultures of their lifestyles, their ...