Product details

At the end of 1977, the REDI SpA management found itself in a state of falling market share, and forecasts spoke of a further substantial medium term drop if suitable measures were not taken. REDI produced polyvinyl chloride (PVC) pipefittings for use in the drainage systems (rainwater and domestic effluent) of residential type buildings. Its production was sold mainly directly to the relatively small number of existing manufacturers of pipes alone. For productive, economic and general market competition reasons, the above mentioned producers of pipe alone began to manufacture also the required fittings, thus exploiting more effectively the middlemen they contacted (wholesalers and retailers). Moreover, as the construction of new buildings, if not actually declining, was at a standstill, it became all the more important to have these middlemen closer to the activity of renovating and rebuilding old constructions, which was in a phase of market recovery.