Murano Glass ClusterMICROECONOMICS OF COMPETITIVENESS
CHACON, EduardoDRAKE, EmilyMAIOR, DanielROBINSON, DianeTREMBINSKI, Kristen MBA 2011Under the Supervision of Professor Ingo Böbel, PhD
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 2
Italy
Total Area: 301,333 km²
Neighbors: France, Switzerland, Austria, Slovenia
Languages: Italian (primary), German, French,
Slovenian
Religion: 90% Roman Catholic
Population: 61 million
Median age: 43.5 years
Population growth rate (2011): 0.42%
Birth Rate: 9.18 births/1000 people (lowest in
Europe)
Main Exports: machinery, transport equipment,
chemicals, clothing and wine
Government: democratic republic
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 3
Veneto
Total Area: 18,399 km²
Population: 4,931,430
8th largest region in Italy (out of 20)
3rd wealthiest One of the most developed and industrialized
Most visited: 60 million tourists/year
Most productive agricultural sector in Italy
One of Italy’s most important wine growing areas
Strong fashion industry
Independent state: Venetian Republic
One of the greatest immigrant-receiving regions in the country
454,453 foreigners (2010) – mainly Romanian & Moroccan
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 4
Italian Economy
GDP: 1.782 trillion USD (2010) GDP per capita: $30,700 USD (2010)
Labour force: 24.97 million people Unemployment: 8.4% (2010)
Germany; 12.9
France; 11.4
UK; 5.8
Others; 69.9
Trade: U.S & other EU countries
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 5
Venetian Economy
GDP per
capita:
€30,038
Major
contributor
to GDP of
Italy3.5%
unemploymen
t rate (2008)
24,000
companies
(metal &
mechanics)
Agriculture
and food
industry
132,500
artisan
companies
Metalworking,
building, fashion,
glassware, artistic
ceramics
Capital Goods: hide
tanning, marble &
granite
Consumer Goods:
Clothing, footwear, eyewear
(80% of all Italian eyewear
manufacturers), furniture,
art of goldsmith
Tourism = + €10mi to
Venetian annual
income
GDP:
€121,113
million
1200
850
2007 2010
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 6
Murano Glass Cluster
Factories and family owned/operated studios
Pride in heritage >>> Rivalry
Century-old technique (lampworking)
Main purchasers Tourists
Architects and interior designers
Museums
Restaurants
Large corporations
# OF GLASSBLOWERS
Cheap knockoffs (China)
Low-cost/good quality products
Historical focus on neighbours as
competitors
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 7
Mission
To promote Murano trademark worldwide +50 glass producers consortium (1985)
Trademark (1994 law)
Museo Vetraio
Murano Glass art schools
Craftsmanship from generations
Short-term courses
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 8
Factor Conditions
Artisans isolated on the island
Atmosphere of high competition
Increasing innovation and creativity
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 9
DEMAND
Italian appreciation for art-glass
Independent collectors
Made in Italy
Tourism
+60% of Murano glass products
Demand Conditions
Country of origin (fashion, design)
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 10
Historical Evolution of the Cluster
1200’s:•Trade association•Glassmakers Guild•Importation law•Murano as a premier glassmaker
All furnaces used for glassmaking were required
to be moved from Venice to Murano:
- Risk of fire or secret protection?
15th & 16th centuries•Cristallo: process of making clear glass
8th century:•Venice as prominent glass-manufacturing center 17th century
•Slow decline: competition from England, Bohemia and France
18th & 19th centuries•Increasing competition with new techniques•Worsening political climate•New laws: more expensive importation and exportation
1854•Antonio Salviati•School for glassmakers•Archive’s exhibition
20th & 21st centuries•Great production•Worldwide recognition•The Glass Museum
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 11
Cluster (under)Performance
World renowned brand in decorative glass
Competition led to stagnation
Trade domination
Domination built only on monopoly of know-how: instability
Geographical integrity
Isolation and island size limitations
Intensive touristic activity
Tourism as a vulnerable industry
Open integration (Vitrino Artistic Murano)
No cooperation among the companies; calcified ideas
Glass school
“The only way to learn is through apprentice”
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 12
Cluster Competitiveness
Veneto: 3rd most wealthiest region in Italy (GDP €139bi)
45 recognised clusters and mega-clusters
Exports increased 150% in the last four years
Veneto Development Model
Strong social cohesion: political and economical
Incentive to wider use of communication technologies – 2000
Veneto Net Goal 2006: Net Globe and E-Cluster
Exports decreased 25% in 2009
Relocation of factories to Eastern Europe (high costs)
Small size of Venetian companies: innovation and R&D
(1) Establishment of SME’s
(2) Traditional products/methods and technology
(3) Globalization and adaptability to changing markets
MURANO GLASS CLUSTER | INTERNATIONAL UNIVERSITY OF MONACO – MBA 2011 13
Recommendations
1. Apprentice programs in the glass schools
2. Articulated aspiration to quality and rigorous marketing
3. More strict monitoring of standard and sales venues
4. Increase cooperation among companies
Q&AThank you.
CHACON, EduardoDRAKE, EmilyMAIOR, DanielROBINSON, DianeTREMBINSKI, Kristen MBA 2011
e c h a c o n @ m o n a c o . e d ue d r a k e @ m o n a c o . e d ud m a i o r @ m o n a c o . e d ud r o b i n s o n @ m o n a c o . e d uk t r e m b i n s k i @ m o n a c o . e d u
