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Case
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Reference no. UVA-BP-0415
Published by: Darden Business Publishing
Originally published in: 1999
Revision date: 24-Apr-2017
Length: 14 pages
Data source: Published sources

Abstract

Piaggio, manufacturer of the Vespa motor scooter, faces the decision of whether to outsource production of a new engine. The decision in the A case is couched in uncertainty over the achievable sales volume for the engine, particularly as new and less expensive competitor products are gaining popularity. The case provides an overview of the competitive style of each of the major manufacturers and allows a discussion of core capabilities of these competitors. The B case describes what happens in the market and to Piaggio after the company has built the engine.
Location:
Industry:
Other setting(s):
1996

About

Abstract

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

Settings

Location:
Industry:
Other setting(s):
1996

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