Piaggio (B)
Liedtka, Jeanne M....
Piaggio (B)
Liedtka, Jeanne M.; Ciano, Pablo; Gibbons, Emily Jean
BP-0416 | Published August 17, 1999 | 5 pages Case
Collection: Darden School of Business
Product Details
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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