Piaggio's Competitive Position and Analysis

Topics: Piaggio, Strategic management, Scooter Pages: 3 (617 words) Published: April 7, 2014
TO: CEO, Piaggio
From:Strategic Business Unit
Re: Piaggio Competitive Position and Analysis
Date:23 February 2014
As conversation earlier this week, I would like to submit the strategic analysis of Piaggio as following: I. Compare and contrast the competitive position of Piaggio, Aprilia and Yamaha in the PTW Market.

Piaggio and Aprilia are Italian motorcycles manufacturers. Piaggio is the fourth largest European manufacturer, with a market share, in value, of 10% in EU and is the market leader in scooter segment. It has a marginal presence in the other two-wheeled segments. It main brands are “ Piaggio” , “ Vespa” , Gilea and Derbi. Aprilia, whose main brands are “Aprilia” , “ Moto Guzzi” and “Moto Laverda” is a smaller producer with a more mixed portfolio, and some popular brands in motorcycles. It has a share of about 6% in the EU. Yamaha is one of the Japanese manufacturers had developed European manufacturing and assembly facilities, both through ventures with local manufacturers and fully owned plant. These three brands of motorcycles, mopeds and scooters were expected to increase from 12.5% to 13.6% of the market by the end of the decade.

Competitor Analysis

What Drives the Competitor
What the Competitor is Doing or is Capable of Doing
Objective: Gain market share of moped and scooter covering the entire range of two-wheelers Offer profit while meeting customer needs
Demand for cheaper price and quality.
Competitors have the resources to procure quality components with reasonable cost

Strategy market: provide the wide range of motorcycles
Mass produced product with superior quality and low cost of manufacturing and sell in a cheaper price Highly fashionable & innovative design to carter the younger generation who are in the most needs of motorcycles. Almost similar model but just to install different engine

Venture with local partner and establish assembly facilities locally

II. Prepare a Strategic map...

References: 1. University of Virginia: Michael Lenox’s Coursera Course, Foundation of Business Strategy
2. Competition Policy Newsletter
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