The Increasing of the Regional Development Thanks to the Luxury Business Innovation

The Increasing of the Regional Development Thanks to the Luxury Business Innovation

Elisa Giacosa (University of Turin, Italy)
DOI: 10.4018/978-1-5225-3525-6.ch011

Abstract

Innovative business models in a large and medium-sized luxury sector have not been widely discussed in the literature in terms of their impact on the regional development. Present publication is therefore aimed at filling this gap and to verify if innovative solutions and regional development may be linked to achievement of the competitive advantage. The benefits deriving from analysis conducted are: i) improved management of innovation strategies thanks to business model developed and ii) increase of consumer awareness about advantages of innovative products. For the purposes of research, a qualitative approach has been used. Only multiple internationally-recognized companies of large and medium dimensions have been considered due to their innovative business orientation passed down from one generation to the next.
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Background

A wide range of researches has discussed the issue of luxury business, dividing it in two following categories, which enable to understand the idea of luxury goods(Chevalier & Mazzalovo, 2008; Giacosa, 2011; Okonkwo, 2007):

Key Terms in this Chapter

Product Innovation: It focuses on a new product or on improvement of an existing product, which generate a benefit in terms of greater utility compared to the existing ones.

Luxury Businesses: It is composed of a certain number of luxury companies characterized by one or more of the following criteria: the process of acquiring the productive factors; the process of manufacturing goods and services; and the process of distributing them.

Process Innovation: It is focused on the introduction of a new operating method, or on the improving of existing one in the production, commercial, administrative and managerial area. In alternative, it generates a new way of using a production factor for increasing efficiency in terms of cost, quality and service.

Company Context: It is the context in which a company operates. The context impacts on the company’s input–output logic and influence the consumers’ consumption choices.

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