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The Natuzzi group and the Bari -Matera (Italy) upholstered furniture district: a case study of internationalisation in a traditional industry

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  • Giovanni BELGIOJOSO
  • Cristina CASTELLI
  • Sara COLAUTTI
  • Massimo FLORIO

Abstract

The case-study focuses on the strategies adopted by the Natuzzi Group, world leader of the upholstered furniture sector, located in the Bari-Matera district (Southern Italy), to face increasing global competition and on their effects. In particular we consider the modes and determinants of productive internationalisation, carried out since 2000 by Natuzzi in China, Brazil and Romania to produce middle-low end products. By improving the competitiveness of the price-sensitive segment, the strategy contributed to the successful expansion of the Group until 2002. However, high range products, manufactured in Italy, record decreasing sales especially on the US market, despite the company’s efforts in R&D and marketing and its investments in information technology. Moreover, due to Natuzzi’s considerable weight in the district, the Group’s performance impacts on the network of subcontracting firms, where a restructuring process is underway, raising questions about the evolution of the district.

Suggested Citation

  • Giovanni BELGIOJOSO & Cristina CASTELLI & Sara COLAUTTI & Massimo FLORIO, 2008. "The Natuzzi group and the Bari -Matera (Italy) upholstered furniture district: a case study of internationalisation in a traditional industry," Departmental Working Papers 2008-42, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2008-42
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    References listed on IDEAS

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    1. Stefano Costa & Giovanni Ferri, 2008. "Firing at Subcontractors? Spillover Employment Effects of Offshoring in Italy," Development Working Papers 238, Centro Studi Luca d'Agliano, University of Milano.
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    5. Giorgia Giovannetti & Elena Mazzeo, 2008. "Industrial Structure and Competitiveness: Crucial Elements in the Internationalization of the Italian Economy," L'industria, Società editrice il Mulino, issue 1, pages 117-134.
    6. Davide Castellani & Ilaria Mariotti & Lucia Piscitello, 2006. "Outward investments and skill upgrading. Evidence from the Italian case," KITeS Working Papers 185, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2006.
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    Cited by:

    1. Ignazio Cabras, 2010. "Use of E-procurement in Local Authorities' Purchasing and Its Effects on Local Economies: Evidence from Cumbria, UK," European Planning Studies, Taylor & Francis Journals, vol. 18(7), pages 1133-1151, July.

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    More about this item

    Keywords

    Internationalisation; industrial district; subcontracting;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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