The Challenges of Mature and Emerging Clusters

Transcription

1 The Challenges of Mature and Emerging Clusters UPDATE ON ITALIAN CLUSTERS ECONOMIC SITUATION Varese, 10 November 1999 Andrea Balestri Alberto Pezzi Luis Ramis COMPETITIVENESS

2 AGENDA THE ITALIAN INDUSTRIAL DISTRICTS NEW CHALLENGES FOR ITALIAN CLUSTERS HOW TO FACE NEW STRATEGIC CHALLENGES? CONCLUSION

3 AGENDA THE ITALIAN INDUSTRIAL DISTRICTS NEW CHALLENGES FOR ITALIAN CLUSTERS HOW TO FACE NEW STRATEGIC CHALLENGES? CONCLUSION

4 ASSE SEMPIONE textile BIELLA wool OLGIATESE textile LUMEZZANE taps,valves, BOLOGNA motorcycles packaging CARRARA marble PRATO textile AREZZO jewelry MAIN CLUSTERS IN ITALY BRIANZA furnitute CANTÙ furniture COMOLECCO silk metalworking CADORE eyewear PROVINCIA DI UDINE seats and tables ALTO LIVENZA furniture MONTEBELLUNA Sky boots CARPI textile VICENZA jewelry SASSUOLO ceramic tiles PESARO kitchen FERMO ASCOLI-PICENO Footwear Main Italian districts according : - worforce (> employees) - turnover (>1.000 milion EURO) - number companies(> 500) Source: CENSIS, VIII Forum dei localismi

5 ASSE SEMPIONE tessile-abbigliamento BIELLA lana OLGIATESE tessile-abbigliamento LUMEZZANE rubinetteria-casalinghi BOLOGNA motociclette packaging CARRARA marmo PRATO tessile AREZZO orificeria MAIN CLUSTERS IN ITALY BRIANZA legno-arredo CANTÙ mobili COMO seta LECCO metalmeccanico CADORE occhialeria PROVINCIA DI UDINE sedie e tavoli ALTO LIVENZA mobili % of Italian Manufacturing VICENZA workforce oreficeria MONTEBELLUNA scarponi da sci CARPI maglieria 60 % of Manufacturing workforce SASSUOLO ceramica industriale in Veneto and 8 % in the South PESARO cucine FERMO ASCOLI-PICENO calzature Source: ISTAT.1996

6 MAIN INDUSTRIAL DISTRICTS IN VENETO GREZZANA red marble ARZIGNANO tanned leather BUSSOLENGO footwear BOVOLONE - CEREA Furniture POSSAGNO roof tiles TURNOVER (Euro) CADORE eyewear MONTEBELLUNA Sky boots BASSANO furnitue VICENZA jewelry MURANO glass RIVIERA DEL BRENTA footwear > mil mil. < 500 mil NUMBER OF COMPANIES > less 100 SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

7 MAIN INDUSTRIAL DISTRICTS IN LOMBARDY ASSE SEMPIONE textile VARESE home appliancesi SANTO STEFANO balances OLGIATESE textile BRIANZA furniture COMO silk PREMANA LECCO coltelli e forbici metalwork CANTÙ furniture GRUMELLO DEL MONTE button LUMEZZANE taps,household VIGEVANO footwear LOMELLINA textile metalwork VIADANA-CASALMAGGIORE lavorazione legno TURNOVER FATTURATO (Euro) (Euro) GARDONE VAL TROMPIA weapons CASTELGOFFREDO socks CANNETO SULL OGLIO tyos SERMIDE metalwork > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

8 MAIN INDUSTRIAL DISTRICTS IN EMILIA-ROMAGNA PARMA meat processing PIACENZA tool machines REGGIO EMILIA machinery PARMA food industry SASSUOLO tiles FAENZA-LUGO fruit juices FAENZA ceramic CARPI knitwear FORLÌ furniture TURNOVER FATTURATO (Euro) (Euro) MIRANDOLA biomedical BOLOGNA motorcycles BOLOGNA packaging machinery RAVENNA : off-shore plants RAVENNA chenicals FUSIGNANO footwear SAN MAURO P. footwear RIMINI funiture machinery RIMINI-RICCIONE CESENA tourism food industry > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

9 MAIN INDUSTRIAL DISTRICTS IN PIEDMONT SETTIMO TORINESE pencil ALBA food processing OLEGGIO bathwear CANAVESE software CUSIO taps, valves, houdehold BIELLA wool CASALE MONFERRATO professional refrigerators VALENZA PO jewelry TURNOVER FATTURATO (Euro) (Euro) > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

10 MAIN INDUSTRIAL DISTRICTS IN TUSCANY LUCCA olive oil LUCCA paper EMPOLI textile CARRARA marble SANTA CROCE SULL ARNO tanning PISTOIA cutting flower VALDIMIEVOLE footwear QUARRATA furniture PRATO textile CASTELFIORENTINO tanning, footwear AREZZO jewelry POGGIBONSI furniture VAL D ELSA textile SINALUNGA textile TURNOVER FATTURATO (Euro) (Euro) > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

11 MAIN INDUSTRIAL DISTRICTS IN LE MARCHE PESARO kitchens URBINO textile CASTELFIDARDO music equipment FERMO - ASCOLI PICENO footwear TOLENTINO leather furniture SAN BENEDETTO DEL TRONTO food industry TURNOVER FATTURATO (Euro) (Euro) > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

12 MAIN INDUSTRIAL DISTRICTS IN LAZIO CIVITA CASTELLANA table and sanitary ware ALTA VALLE DEL TEVERE paper TIBURTINA electronics devices POMEZIA pharmaceuticals FROSINONE metalwork TURNOVER FATTURATO (Euro) (Euro) > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

13 MAIN INDUSTRIAL DISTRICTS IN PUGLIE BARLETTA-TRANI footwear AREA MURGIANA furniture CASARANO footwear TURNOVER FATTURATO (Euro) (Euro) > mil mil. < 500 mil NUMBER OF NUMERO DI IMPRESE COMPANIES oltre > fino less a SOURCE: CENSIS, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS

14 ABRUZZO... REGION CAMPANIA CLUSTERS IN ITALY REGIONE EMILIA-ROMAGNA FRIULI-V-GIULIA 4 LAZIO LOMBARDIA 21 PIAMONTE TOSCANA TRENTINO -ADIGE UMBRIA VENETO 7... TOTAL 82 Source : Rapport CNEL ISTAT Taglia- Carne Sole 24 Ore CERIS

15 CLASSIFICATION DATA CERIS INDUSTRY Textile or related No. clusters 12 Footwear or related 9 Furniture or related 7 Food or related 6 Tanning 4 Metalwork 3 Stone/marble 4 Jewelry 3 Machinery 3 Source: CNEL-CERIS.1997

16 CLASSIFICATION DATA CERIS INDUSTRY No. clusters Home appliances 3 Knifes 2 Ceramic / Tiles 2 Biomedical 1 Eyewear 1 Motorcycles 1 balances 1 Software Source: CNEL-CERIS.1997

17 A POSSIBLE CLASSIFICATION OF ITALIAN CLUSTER Traditional industries textile, footwear, furniture, jewelry, eyewear, Specialized business to business machinery tools, packaging, plastics,... Manufacturing suppliers clusters OEM s related ( motorcycles, automotive, home appliances,...)

18 CHARACTERISTICS OF ITALIAN CLUSTER CONCENTRATED IN TRADITIONAL INDUSTRIES textile, furniture, tiles, footwear, jewelry,... PRODUCTION PROCESS SHOULD BE SEPARABLE HIGH LEVEL OF SPECIALISATION WITHIN CLUSTER (CLUSTER VERTICAL INTEGRATION) not (or few) economies of scale at company level MAINLY CREATED THROUGH SPIN-OFF PROCESS

19 CROSS FERTILISATION THROUGH LABOUR FORCE SME s AND FLEXIBILITY HIGH LEVEL OF COMPETITION WITHIN THE CLUSTER HIGH EXIT BARRIERS LOW COST OF TRANSACTION SENSE OF CLUSTER... CHARACTERISTICS OF ITALIAN CLUSTER common rules, values,...

20 AGENDA THE ITALIAN INDUSTRIAL DISTRICTS NEW CHALLENGES FOR ITALIAN CLUSTERS HOW TO FACE NEW STRATEGIC CHALLENGES? CONCLUSION

21 A NEW SCENARIO FOR ITALIAN CLUSTERS: MACROECONOMICS INTERNATIONAL TRADE LIBERALISATION INCREASING COMPETITION FROM EMERGING ECONOMIES TRADITIONAL INDUSTRIES END OF DEVALUTION AS COMPETITIVE WEAPON (EMU) INCREASING RELATIVE FACTORS COST STAGNANT DEMAND FROM TRADITIONAL CUSTOMERS (OECD)

22 A NEW SCENARIO FOR ITALIAN CLUSTERS: MICROECONOMICS CONCENTRATION ON TRADITIONAL INDUSTRIES INNOVATION FOCUSED ON PROCESS TECHNOLOGICAL AND MANUFACTURING BEST PRACTICES DIFUSSION CHANGES IN COMPETITIVE ADVANTAGE (SMALL SIZE COULD BE A COMPETITIVE DISADVANTAGE IN SOME INDUSTRIES) access to emergent markets customers concentration & lower bargain power

23 CUSTOMER CONCENTRATTION Big companies from Biella cluster (wool) strangled by distribution chains Source: Il Sole 24 Ore. 1999

24 A NEW SCENARIO FOR ITALIAN CLUSTERS: RESULTS DECREASING EXPORTS

25 DECREASING EXPORTS Textile industry in difficulty Exports decrease 10% in the last 4 months Source: Il Sole 24 Ore. 1999

26 A NEW SCENARIO FOR ITALIAN CLUSTERS: RESULTS DECREASING EXPORTS SME S WITH FINAL PRODUCT AND NOT SPECIALISED SUPPLIERS ARE SUFFERING BIG COMPANIES AND TECHNOLOGICAL SUPPLIERS HAVE THE HIGHEST MARGINS

27 A NEW SCENARIO FOR ITALIAN CLUSTERS: REACTION CONCENTRATION (M&A) FOR FACING NEW STRATEGIC CHALLENGES

28 CONCENTRATION LEVEL BETWEEN TWIN CLUSTERS Turnover (Euro) Castellón No. Comp. % Sassuolo No. Comp. % >50 M 10 6% 29 10% M 22 13% 25 8% M 20 12% 34 11% M 33 20% 28 9% 5-10 M 46 27% 54 18% <5 M 38 22% % Source: CC with data from ASCER and Assopiastrelle.1997

29 A NEW SCENARIO FOR ITALIAN CLUSTERS: REACTION CONCENTRATION (M&A) FOR FACING NEW STRATEGIC CHALLENGES MANUFACTURING PLANTS ABROAD

30 MANUFACTURING PLANTS ABROAD Boom in footwear manufacturing based in Eastern Europe Source: Il Sole 24 Ore. 1999

31 A NEW SCENARIO FOR ITALIAN CLUSTERS: REACTION CONCENTRATION (M&A) FOR FACING NEW STRATEGIC CHALLENGES MANUFACTURING PLANTS ABROAD COMPANIES PUSHED INTO HIGH LEVEL STANDARD PRODUCTS

32 A NEW SCENARIO FOR ITALIAN CLUSTERS: REACTION CONCENTRATION (M&A) FOR FACING NEW STRATEGIC CHALLENGES MANUFACTURING PLANTS ABROAD COMPANIES PUSHED INTO HIGH LEVEL STANDARD PRODUCTS INTEGRATION TOWARDS DISTRIBUTION

33 A NEW SCENARIO FOR ITALIAN CLUSTERS: REACTION CONCENTRATION (M&A) FOR FACING NEW STRATEGIC CHALLENGES MANUFACTURING PLANTS ABROAD COMPANIES PUSHED INTO HIGH LEVEL STANDARD PRODUCTS INTEGRATION TOWARDS DISTRIBUTION DIVERSIFICATION & BUSINESS ENLARGEMENT

34 ONE EXAMPLE: EYEWEAR CLUSTER IN BELLUNO

35 A CLUSTER SUCCESS STORY Eyewear: a global business.. with a local focus. Venice Belluno - Italy : - approx companies and workshops in eyewear cluster - over 35% of world production

36 A CLUSTER SUCCESS STORY Why Belluno? Context for Firm Strategy and Rivalry Factor Conditions Demand Conditions Related and Supporting Industries

37 A CLUSTER SUCCESS STORY Eyewear cluster diamond in Cadore FACTOR CONDITIONS Local skills and core capabilities Strong tradition in eyewear manufacturing Eyerwear and tourism as main local activities Presence of world leaders in the sector

38 A CLUSTER SUCCESS STORY Eyewear cluster diamond in Cadore DEMAND CONDITION Sophisticated domestic market Demand influenced by designers lines 70% of the local production exported to international markets

39 A CLUSTER SUCCESS STORY Eyewear cluster diamond in Cadore RELATED AND SUPPORTING INDUSTRIES Italian fashion and design industry Network of specialised suppliers in related production (surface treatments, etc.)

40 A CLUSTER SUCCESS STORY Eyewear cluster diamond in Cadore CONTEXTFOR FIRM STRATEGY AND RIVALRY Big firms competing on international markets Small suppliers competing locally on price Scarce collaboration among local firms Difficult automation on the entire production

41 A CLUSTER SUCCESS STORY Eyewear : a global business Main eyeglass producers at world level : Company Headquarters Turnover 98 (MN. Euro) LUXOTTICA Agordo - BL (I) 1,033 SAFILO Padova (I) 435 DE RIGO Limana - BL (I) 155 MARCOLIN Longarone - BL (I) 80

42 A CLUSTER SUCCESS STORY Eyewear: a global business.. with global competitors LUXOTTICA is the world leader in the design, manufacture and marketing of eyeglass frame and sunglasses LUXOTTICA has 27 production plants in six continents LUXOTTICA is also the world most important retailers in the optical segment (almost 800 stores only in the US)

43 A CLUSTER SUCCESS STORY Eyewear: a global business BAUSCH&LOMB has agreed to sell its sunglasses business, including Ray-Ban, to Italy s Luxottica Group, for $640m. (The Economist, May 1st 1999)

44 A CLUSTER SUCCESS STORY Eyewear: a global business.. with global competitors LUXOTTICA total turnover in 1998 has been over 2,000 bn of ITL (1033 millions of EURO) Since 1990 LUXOTTICA is quoted at NYSE

45 ...BUT Eyewear industry doesn t see the recover Source: Il Sole 24 Ore. 1999

46 STRATEGIC CHALLENGES IN EYEWEAR BELLUNO CLUSTER The Italian manufacturing companies have high cost and decreasing competitiveness Interview to Vittorio Tabacchi, Safilo s President If SME s don t collaborate, the selection will be painful and one company out of three will close down Giorgio Ciotti, Vice president SIPAO SOURCE: IL SOLE 24 ORE. 15/4/1999

47 EYEWEAR CLUSTER IN BELLUNO Competitors from Far East Overcapacity Vertical integration at company level (big ones) for facing crisis lower bargain power end of devaluation few innovative SME s (manufacturing oriented)

48 EYEWEAR CLUSTER IN BELLUNO: EVOLUTION CONCENTRATION (M&A) MANUFACTURING PLANTS ABROAD INTEGRATION TOWARDS DISTRIBUTION EXPANSION AND GROWTH OF BIG ONES WITH FINAL PRODUCT INCREASING IMPORTANCE OF INTANGIBLE ASSETS SUFFERING AND DECREASING MARGINS FOR SME's COMPANIES AND NON TECHNOLOGICAL SUPPLIERS

49 AGENDA THE ITALIAN INDUSTRIAL DISTRICTS NEW CHALLENGES FOR ITALIAN CLUSTERS HOW TO FACE NEW STRATEGIC CHALLENGES? CONCLUSION

50 FACING NEW CHALLENGES STRATEGIC ANALYSIS BECOMES THE KEY SUCCESS FACTOR MANAGING THE PART OF VALUE CHAIN LOCATED ABROAD CONTROLLING NEW EMERGENT CLUSTERS ABROAD DEVELOPING SKILLS IN R+D, DESIGN, LOGISTICS AND MARKETING

51 FACING NEW CHALLENGES MARKETING ORIENTED VS MANUFACTURING ORIENTED LOOK FOR NEW WAYS TO DIFFERENTIATE: MARKETING, DESIGN, BRAND BUILDING,... INTEGRATION TOWARDS THE DISTRIBUTION CO-OPETITION (FOR FACING SIZE DISADVANTAGES,...)

52 AGENDA THE ITALIAN INDUSTRIAL DISTRICTS NEW CHALLENGES FOR ITALIAN CLUSTERS HOW TO FACE NEW STRATEGIC CHALLENGES? CONCLUSION

53 ITALIAN CLUSTERS EVOLUTION TIME 60 s- 70 s 80 s 90 s MAIN FEATURES Born & fast growth small is beautiful consolidation former clusters & excellence manufacturing new children & growth flexibility and time response first problems & stagnancy Late 90 s strategy & cluster governance

54 CONCLUSION ITALIAN CLUSTERS, MAINLY FOCUSED IN TRADITIONAL INDUSTRIES, ARE SUFFERING, PARTICULARLY SME S IT IS NECESSARY TO THINK ABOUT NEW WAYS TO COMPETE FOR ADAPTING TO NEW BUSINESS SCENARIOS (VERY DIFFERENT TO FORMER ONES) STRATEGIC ANALYSIS BECOMES A KEY SUCCESS FACTOR : THERE ARE SUCCESSFUL COMPANIES IN EACH CLUSTER (NOT ONLY BIG ONES)