Case Name :      Speed Race: Benelli and QJ Compete in the International Motorbike Arena

Authors :           Francesca Spigarelli, Ilan Alon, William Wei

Source :             Ivey Publishing

Case ID :            909M97

Discipline :        General Management

Case Length :    16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In 2005, the Qianjiang Group (QJ), a large-scale Chinese state-owned group, acquired the Italian company Benelli to expand its business in Western markets beyond Italy. Benelli’s brand advantage was intended to provide the core competency for QJ to compete in the global motorbike markets; in addition, Benelli’s capabilities and know-how in motorbike and scooter engineering also helped QJ complete its product portfolio. After a successful start, the many cultural differences related to an Italian business model and a Chinese company became problematic. Problems arose in integrating Chinese and Italian cultures and in coping with a completely different way of doing business, and the company was facing stiff competition from Japanese competitors. Despite excellent press and large industrial investments aimed at gaining efficiency and reducing prices, penetration of Western markets was difficult.