Business Case Studies, Market Entry Strategies Case Study, Vespa's Entry Strategies, for the US Market

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Market Entry Strategies Case Study

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Case Title:

Vespa's Entry Strategies for the US Market

Publication Year : 2007

Authors: M.V Patil, Bharathi S. Gopal

Industry: Automobiles

Region:US

Case Code: MES0072B

Teaching Note: Available

Structured Assignment: Available

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Abstract:
The Piaggio Group, one of the world’s top two-wheeler manufacturers introduced its brand, Vespa, in the US market during 1950. But Vespa had to be pulled out of the market because of stringent emission standards. In 2000, Piaggio re-launched Vespa in the US market which was better and fuel-efficient. As scooters were gaining popularity around this time in the US and sales rising, Piaggio felt that it was not an opportunity to be missed. It went ahead implementing several strategies to strengthen its presence in the market but faced a big challenge in combating rising safety concerns regarding scooters.

Pedagogical Objectives:

  • To study the market for scooters in the US
  • To examine the reasons of Vespa behind reentering the US market
  • To study the market entry strategies of Vespa
  • To elucidate the safety concerns regarding scooters and understand Vespa’s measures to respond to them
  • To study the branding challenges that a multinational company faces on entering diverse cultures.

Keywords : Vespa; Piaggio; US market; Two Wheeler; Vespanomics; Aprilia; Moto Guzzi; Lifestyle Brand; Scooter; Market Entry Strategies Case Study; ET2; ET4; Safety; Utility Vehicle; Economy

Contents : 
About Piaggio
Vespa’s Overseas Markets
Market Potential for Scooters in the US
Steady Growth in Scooter Sales
Comparison of Vespa with Cars
Vespa’s Market-Entry Strategies in the US
Vespa’s Timeline

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