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Piaggio (B)
Liedtka, Jeanne M.; Ciano, Pablo; Gibbons, Emily Jean Case BP-0416 / Published August 17, 2000 / 6 pages.
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Product Overview

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 (UVA-BP-0415) 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.


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  • Overview

    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 (UVA-BP-0415) 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.

  • Learning Objectives