Looking east Luxottica Seminar Week 2 Marios Stylianou According that 90% of the Chinese people are myopic, there was a great potential for growth into the market and as a multinational expansion. The development strategies that the company followed since its birth are the following. Firstly the company started manufacturing and styling sunglasses in Italy in 1961. Luxottica followed market development by expanding in Europe and later on in the United States. In 1990 Luxottica was listed in the New York stock exchange. Five years later the company branched into retailing using vertical integration. By this it means that Luxottica not only manufactured sunglasses but also was selling the product. Luxottica penetrated the market by taking over Lens Crafters, the biggest optical retailer in America. Also, in 2001 Luxottica acquired Sunglass, the world’s leading retailer of sunglasses. According that 90% of the Chinese people are myopic, there was a great potential for growth into the market. That was a reason why Luxottica takeover Ming Long Optical chain In Guangdong, insouthern china. It is good to mention also that Luxottica acquired brands such as Ray Ban and also produces under licence Prada, Chanel and other luxury goods firm. International acquisition, vertical integration and diversification together with internal capitalisation following post-acquisition rationalisation and the realisation of a significant level of economies of scale between its divisions and commercial units make up the main elements of the development strategy of this company since the beginning of its operations. The expansion of the company leads to higher costs in management and control of a continuously growing structure. Higher costs can have a negative impact on growth trends and therefore cost monitoring and rationalisation of the structure is necessitated in order to maintain efficiency and competitiveness. • All significant components of the eyewear production and...