Scavolini Case Study
The Scavolini company was started in 1961 and by 1984 was a leader in the Italian market.
The mission of the Scavolini states: “We work to improve the quality of life in the kitchen by raising the standards of both stylistic and functional aspects, in full accordance with our core values.” (Scavolini, 2014).
As of 2014, Scavolini products are placed in 1300 shops with more than 40 models and 350 variations (Scavolini, 2014). Over the years, Scavolini has not only created new lines, but has pursued a diversification strategy where it has acquired new brands. When Scavolini wanted to enter in luxury kitchen segment, it bought Ernestomeda.
Although Scavolini products sell on the international market, it operates with a distinct district perspective: all the production phases are realized by external suppliers localized in the same province of company that assembles the components. The relationship with suppliers is a partnership where the trusty affiliation is particularly strong, and finally they operate in a fully automated warehouse that provides for maximum efficiency.
The R&D activity of Scavolini focuses primarily on the development of new models and the redesign of existing ones, realized by the collaboration with designers and architectures (i.e. King & Miranda Design, Karim Rashid, Giugiaro Design, etc.). During the process of development of new products, several phases happen:
Scavolini’s competitive advantage is guaranteed by the supplier’s network that provides: the advantage of scale and flexibility economies; the creativity in the qualitative and aesthetic development of new products; a marketing strategy congruent with mission, vision and values of the company. Thus, the scale and scope economies in this sense are technical and organizational (marketing and distribution).
The Scavolini company was started in 1961 and by 1984 was a leader in the Italian market.
The mission of the Scavolini states: “We work to improve the quality of life in the kitchen by raising the standards of both stylistic and functional aspects, in full accordance with our core values.” (Scavolini, 2014).
As of 2014, Scavolini products are placed in 1300 shops with more than 40 models and 350 variations (Scavolini, 2014). Over the years, Scavolini has not only created new lines, but has pursued a diversification strategy where it has acquired new brands. When Scavolini wanted to enter in luxury kitchen segment, it bought Ernestomeda.
Although Scavolini products sell on the international market, it operates with a distinct district perspective: all the production phases are realized by external suppliers localized in the same province of company that assembles the components. The relationship with suppliers is a partnership where the trusty affiliation is particularly strong, and finally they operate in a fully automated warehouse that provides for maximum efficiency.
The R&D activity of Scavolini focuses primarily on the development of new models and the redesign of existing ones, realized by the collaboration with designers and architectures (i.e. King & Miranda Design, Karim Rashid, Giugiaro Design, etc.). During the process of development of new products, several phases happen:
- evaluation phase (R&D office, marketing office, sales office);
- executive planning (R&D office and industrialization office);
- presentation of new model (all the offices);
- industrialization phase (production office, purchase office, R&D office).
Scavolini’s competitive advantage is guaranteed by the supplier’s network that provides: the advantage of scale and flexibility economies; the creativity in the qualitative and aesthetic development of new products; a marketing strategy congruent with mission, vision and values of the company. Thus, the scale and scope economies in this sense are technical and organizational (marketing and distribution).
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