A speed race Benelli and QJ Compete in the International Motorbike Arena

1696 WordsJan 14, 20157 Pages
CASE aNALYSIS P2-2 A speed race: Benelli and QJ Compete in the International Motorbike Arena Alexandra Totoret /2014 1. What are the cultural differences that may impede success after the merger and acquisition? According to Hofstede Centre, between the two countries that merged in order to unite their economic strength to sell more motorcycles on the global market, there are a lot of differences which were involved in the merge and acquisition, and these could impede their success after the merge. The first and the main difference between the two cultures is their attitude toward their self-image as being: “We” or only “I”. While for the Italian the motivation in the business comes when they are open to follow their own…show more content…
As a conclusion, there are a lot of different cultural aspects that should be taken into consideration when merging two countries with different life and economic experience. If they are not treated properly, they would lead into a failure in near future. 2. Use the Boston Consulting Matrix to analyze the product portfolio of the merged company According to Boston Consulting matrix, products are associated with: question marks, stars, dogs and cash cows depending on the market share and market growth. The portfolio of products which was analyzed included: scooters, motorcycles, off road, parts and accessories. After the merge and acquisition, scooters stopped being distributed in China because of they were not competitive in terms of price, they are considered dogs. They have low marked share and low market growth, they don’t make much profit. The Chinese production of these products should be stopped, for the company to redistribute their product lines to other models that can become stars or cows. After the merge, they redistricted the production of scooters: they designed the models in Italy and produced the scooters in China by QJ, after that imported in Italy with Benelli’s brand. These new approach would make them stars: the new merged firm introduces new models with lower prices and gains high market share and high market growth. In 2009, the production of motorcycle had to be increased 7 times because of the market trends. The

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