Piaggio (B) - The Case Centre

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Compact case

Case

Reference no. UVA-BP-0416

Subject category: Strategy and General Management

Authors: Jeanne M Liedtka (Darden School of Business, University of Virginia); Pablo Ciano (Darden School of Business, University of Virginia); Emily Jean Gibbons (Independent Author)

Published by: Darden Business Publishing

Originally published in: 1999

Version: 3 November 2022

Revision date: 14-Nov-2022

Length: 5 pages

Data source: Published sources

Topics: Decision making; Industry analysis; Outsourcing; Operations management; Best practices

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Abstract

Piaggio, manufacturer of the Vespa motor scooter, must decide whether to outsource production of a new engine. The decision is surrounded by uncertainty about the achievable sales volume for the engine, particularly as competitors' new and less expensive products are gaining popularity. The A case provides an overview of the competitive style of each of the major manufacturers and affords a discussion of their core capabilities. The B case describes what happens in the market and to Piaggio after the company has built the engine.

Location:

Italy

Industries:

Automobile; Automotive

Other setting(s):

1996