In 2005, the Qianjiang Group (QJ), a large-scale Chinese state-owned group, obtained the Italian firm Benelli to enlarge its business in Western markets beyond Italy. The brand edge of Benelli was thought to supply the core competency for QJ to compete in the international motorbike markets; the capabilities of Benelli, in addition and know how in scooter and motorbike engineering also helped its product portfolio is completed by QJ.
After a successful beginning, the many cultural differences related to a Chinese firm and an Italian business model became problematic. Issues appeared in making do with a totally different manner of doing business and in integrating Chinese and Italian cultures, and the company was facing stiff competition from Japanese competitors. Despite outstanding press and large industrial investments targeted at reducing prices and obtaining efficacy, penetration of Western markets was not easy.
Speed Race Benelli and QJ Compete in the International Motorbike Arena case study solution
PUBLICATION DATE: December 23, 2009 PRODUCT #: 909M97-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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