Barilla, the largest pasta company in the world, has introduced a new high-quality high-priced product line, which has a number of authentic Italian products are derived from artisan producers. Management believes that the line will appeal to consumers looking for healthy food and convenience, as well as help expand the brand identity beyond the Barilla pasta. However, a new line of bold departure from the core competencies of Barilla large volumes of production and sales of fast-moving, low-cost goods. Provides an opportunity to discuss the trends in consumer food preferences, supply chain for locally manufactured products, as well as changes in retail formats. Also provides an opportunity to discuss the differences in investment philosophy between family businesses and publicly traded companies.
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by David E. Bell Source: Harvard Business School 31 pages. Publication Date: October 17, 2006. Prod. #: 507001-PDF-ENG