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Foreign norms and local market knowledge are important and ?going global' can mislead companies that have not first understood the profit dynamics of their industry. Luxottica has clearly mastered these traits for its current global dominance in the designer optical markets worldwide.
Luxottica has used the strategy of adding new capacity through acquisitions to drive down returns through superior execution and used this strategy to become a world leader in eyeglasses. The company quickly recognized the importance of retail distribution for profitable growth: Direct access to eyeglass wearers provides unique data on what customers are buying, and allows Luxottica to market its own products...
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