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Piaggio-Vespa Case Analysis Essay

Decent Essays
Environmental analysis
Competitive forces: Italian manufacturer Piaggio ranks as one of the world’s top four players in its core business. It has consolidated leadership in the European 2-wheeler market. Piaggio should not miscalculate its competitors. Competition in the industry is very powerful, not only nationally but internationally as well. This is due to two well-established companies in this sector which are the Japanese Yamaha and Honda. Yamaha and Honda strengths are their long-run experience in the sector and the high quality image of products. Due to participations to the motorcycle championships, these two companies constantly receive positive feedbacks to their efforts in researching for first class products. In the future,
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(Wikipedia, 2008)
Political forces
This European icon and mode of transportation debuted in the U.S. market in the 1950s and was forced to leave the market in the 80’s due to the strict demands of the Environmental Protection Agency (EPA). Before 2000, Vespa had to stop operations in the United States because they failed to meet pollutions standards. Piaggio will need to prove the Environmental Protection Agency that their modern models are emissions-compliant and incredibly fuel-efficient engines. Due to the environmental concerns Piaggio needed to introduce a new small-frame scooter, the LX range. Piaggio is in a better shape now to deal with America's clean-air regulations (Wikipedia (2008).
Furthermore, Piaggio needed new capitals so Unions and Customers suggested that the quotation should be changed from an IPO to OPS with the intervention of the Government and Consob. Consob organizes and runs the Italian regulated markets for equities, bonds, and derivatives (Forbes, 2006)
Legal and regulatory forces
It appears that the history of Vespa motor scooters has led to the United States as the major
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