The role of entrepreneurship and innovation in existing companies – the case of Gucci

Had an amazing lecture by Professor Lorenzo Zanni connected with a Gucci case.

Started with a brief review of Italian economy, he turned to the fashion industry background in Italy. I think, the main thought of this lecture was the importance of small business in Italy – not only in this current Gucci case or fashion industry, but for whole economics. Without small and medium enterprises most of the current Italian results – low rate of unemployment, high quality of goods (as Italian brand) and profit matters – just would not be possible in this country.

 Gucci is a perfect example how large and small companies can cooperate for the decent benefits – small company can provide best quality of materials and hand made accessories, big one – constant work and payments.Network, developed by Gucci, was and is perfect model of cooperating for quickest way of innovation search. Inside large companies it can be really hard to find and develop a real innovation,

but small family firms have their own view on the market, and that helps to avoid daily routine in such a changeable industry as fashion.

 Before the lecture I had no idea, that Gucci owns not only its brand, but also 4 cutting-edge brands with high potential for long-term growth (Balenciaga, Stella McCartney, Alexander McWueen, Sergio Rossi). That is all Gucci – diversification in everything. Different brands, names, designers, markets and final customers. Small and medium external companies, that allows one large corporation to stay on the edge of industry - and it is Gucci style, that helps this company still stay Italian - not French or Chinese. 

It is the first time I see this kind of cooperation model  - it surprises with simplicity and effectiveness. Maybe things in the world could be much easier, if we could mention different ways of leading businesses.