International ManagementProf. Micelli

The Smurfs:

Civiero Elena 836529

Cragnolini Alessandro 857647

Drigo Riccardo 844504

Fabbri Anna 855013

Mason Ambra 836607

Pasini Anna 854659

Pilotto Matteo 859631

Maniago District:lionSTEEL Case Study

Agenda

1. District Overview

2. lionSTEEL Overview

3. Our proposal

4. References

SR-1 Original

DPx GEAR: T3

‘’Socio-territorial entity characterized by the active presence of both a community of people and a population of firms, in one single naturally and

historically bounded area“

[G. Becattini]

9 communities operating in different kind of technological, product and market specializations,

composed by:

152 firms

2741 employees

lionSTEEL Knives SAS

Born in 1453, thanks to

the permission of

Venetian Republic 600 years of relation

Sensitivity to

HISTORY and

PAST

Maniago Districts

Report from ‘’Agenzia di Sviluppo del distretto del coltello consorzio’’, 2014-2016

‘’Although it is true that the system of small and medium-sized businesses in Maniago has traditionally based its competitive strength on

its relationships in the local context – the so-called “short” supply chains – it is now becoming increasingly vital to establish links with

production and marketing systems which operate at international level – the so-called “long” supply chains – even pursuing active

programmes of internationalization.”

District Export Trend

40% 8%

5%

4%

43% Export Rate: 45%

www.italtrade.it

2000s Italian Industrial Districts

‘’are on the move’’

Introduction NEW TECHNOLOGIES

Competition from EMERGING COUNTRIES

‘’TRADITIONALLY DISTRICTS were the result of a process of dynamic interactions between division-

integration of labour in the district, a broadening of the market for its product and the formation

of a permanent linking network between the districts and the external market.’’

Possible exploitation due to merging of

community + population of firms

Value Chain Evolution

Same scenario in Maniago District

• 2001, China entered in WTO

• New ITCs introduced

Foreign competitors entering in the

knives market with similar products (often

imitation) at lower costs

Implementation of

delocalization and

outsourcing strategies in China

( cheaper workforce

+

commodities)

Developing Global Value Chain

1969Foundation

by G. Pauletta

END OF THE 90s Entrance of

Massimo, Gianni e Daniele

2000sFocus on

Innovation, Materialsand Brand

TURNING POINT

2009TOP QUALITY

PRODUCT

2010 (Atlanta)

MostInnovative Imported

Design

2014 (Atlanta)Best

Manufacturing

Quality Award

and Overall

Knive of the Year

2015 (Atlanta)

OverAll Kniveof the Year

2012 (Atlanta)Most

Innovative Imported

Design

lionSTEEL History

Every Day Carry knives , collectors’ items;

Turnover tripled in the last 5 years : 2 million euros

threshold exceeded;

From 7 to 21 employees;

Vertical integration: evolution, born as a third party

producer, now most of the value-chain activities

in-house

CEO: PaulettaGianni

Chief Product

Officer: Pauletta

Massimo

CNC ChiefConstable

Specific

machines

responsible

Specific

machines

responsible

Specific

machines

responsible

Workers

lionSTEEL Overview

• Huge investment in the company

• From middle quality product to high qualityproduct

Differentiation from local

trend

•

• Association of tradition and high qualityknives with Maniago district

• Outsourcing opportunities: non core activitieslike brand-printing, knives paintings

• Resource seeking: young talent from localtechnical and artistic schools

Exploitation of the district

opportunities

lionSTEEL and the District

Suppliers

CustomersCompetitors

Product based market

Behavioral approach: co-operation

Top firms are American: SPYDERCOMICROTECHCHRIS REEVEBENCHMADE

Product quality Quality of materials

International recognition:strength to impose prices and make a screening based on the brands the dealer already sells and the behavior in terms of price

Attention on global image of the brand: auction sites avoidance, important to defend the brand and the quality perceived also in terms of prices.

Competitive Environment

From Local To Global

DIRECT SELLING in 34 countries

International brand awareness thanks to the awards won

94% revenues from international markets (USA, Germany, France…)

Exports

Co-Branding in the past

• lionSTEEL looks for

partnerships

Co-Brandingnowdays

• SMEs look for partnerships

with lionSTEEL

INFO-

COMMERCE

E-COMMERCECreate interest through

QUALITY and PRODUCT CHARACTERISTICS

Data collecting warranty activation

subscription on the web site

Data on customers’

preferences and

location

EFFECTIVE achievement of

clients

E-Commerce & Big Data

Learning from other

industries

Innovation Process

Research & Development

• Design, prototype, manufacture in end-materials

Subtractive Manufacturing

• Process of joining materials layer upon layer to produce an object

Additive Manufacturing

Companies are looking for solutions that provide better, faster,

cheaper ways of producing prototypes and manufacturing parts

Technological Scenario

lionSTEEL and the Technology

Constant machining precision

Coexistence of craft work and innovative technologies

Preview of the product before it becomes real

Competitive Edge = offer an innovative and sophisticated product

Subtractive Manufacturing

The necessity and willingness to propose every year something new brought to investigate whether

there might be some technologies used in other markets that could suit and improve the quality and the

innovation of lionSTEEL knives.

IKBS System: manufacturing process facilitating the sliding of the blade

SOLID® Knife Technology: handles made of a single piece

Application of aerospace technology (kinetic analysis);

High-performance materials and weight reduction;

3D Printing techniques: world’s first producer of a folding 3D printed knife;

DMLS Technology: important work of precision from a block of titanium.

Additive Manufacturing

“’Best Manufacturing Quality Award 2014”

TiDustThe first folding knife made

using additive manufacturing

QUALITY high standard and high

quality production are requested in

order to guarantee consumers the

service of lifelong warranty.

INNOVATION “innovate the process

to innovate the product”.

DESIGN boost the quality of the

product, value-added for many knives

enthusiasts and collectors.

FLEXIBILITY ability to overcome

different legal costraints.

QUALITY

DESIGN

FLEXIBILITY

INNOVATION

Competitive Advantages

Global Presence

Geo-Political Scenario

Our Proposal

lionSTEEL in the world

New Contest

Photo/video sharing

New shapes and functions

Open Sourcing Internet

Launchingthe product

Giftproduct

Limited editions

Benefits

References

www.lionsteel.it

www.italtrade.it

www.distrettocoltello.it

www.montagnaleader.org

www.infocamere.it

www.unioncamere.it

Report from ‘’Agenzia di Sviluppo del distretto del coltello consorzio’’, 2014-2016;

Becattini (2004) The Marshallian Industrial District as a socio-economic notion,

Chiarvesio, Di Maria, Micelli (2010) Global Value Chains and Open Networks: the Case of Italian Industrial

Districts,

1. Bibliography

2. Websites

Thanks for

your attention!

Anna P.Elena Alessandro

Riccardo Matteo Anna F. Ambra