December 2011, Varese, Italy. MV Agusta, the legendary Italian racing motorcycle brand, had just found its latest attempt to regain the acclaim it had enjoyed in the 1970s. In 20 years Claudio Castiglioni, the famous bike aficionado and serial entrepreneur, had got MV Agusta for the 3rd time in August 2010. Claudio was an idol in the bike world, having restored illustrious brands such as Ducati, Cagiva, Husqvarna and Moto Morini. Jointly with his son Giovanni and Massimo Bordi, the famous engineer behind the Ducati success stories of the 1990s, Claudio hoped that third time would be a charm.
Sadly, Claudio did not get to view the fruits of the revival of MV Agusta: He passed away on 17 August 2011 at the age of 64, leaving some big shoes for his son Giovanni to fill. As head of sales and marketing then stepping in as CEO in 2010, Giovanni had been working in the company since 2002. He shared his father's vision and it was up to him to turn it into reality. The first results following the reacquisition appeared promising but the bike marketplace was shrinking dramatically over the past 10 years. The financial and economic disaster had hit Italy especially hard during the previous three years. What will it take to finish the turnaround triumphantly and quickly gain momentum in this competitive market? How could he reignite the fire under this particular beacon of motorcycle racing prowess? How should the MV Agusta brand be placed now? Should it place more emphasis on the brand's lifestyle components, extending its offering of accessories for bikes and riders? How big could the firm become without endangering the brand's elements of exclusivity? Learning objectives: Rebuilding an iconic brand, placing a luxury product, development and technology innovation, funding growth, entrepreneurship, corporate venturing, succession management, family business governance.
THE CASTIGLIONI FAMILY AND MV AGUSTA - MOTORCYCLE ART case study solution
PUBLICATION DATE: August 09, 2012 PRODUCT #: IMD603-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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