Abstract

Since the late 1980s, Miuccia Prada and her husband Patrizio Bertelli, CEO (Chief Executive Officer) of the Prada group, have successfully built a radical image for Prada. Miuccia, the creative mind behind the design has achieved a fine blend of innovation and tradition. Bertelli, the brain behind Prada's stupendous growth has developed a vertically integrated business model, which he calls a "brand machine". Bertelli has also acquired brands like Fendi, Jil Sander and Helmut Lang. These purchases have resulted in a huge debt. Bertelli realises the need for an IPO (initial public offering), but he postpones it three times between 2000 and 2004. He knows that in a public limited company, he will have to be more accountable to investors. At the same time, to implement the company's ambitious growth plan, Bertelli cannot postpone the IPO for long. What should Bertelli do?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 0

Keywords

Prada, Miuccia, Bertelli, Vertically integrated, Business model, Strategy, Luxury goods, Miu Miu, Initial public offering, IPO, Italy, Multibranding strategy, Control, Debt