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

Case Solution

Francesca Spigarelli, Ilan Alon, William Wei
Ivey Publishing ()

In 2005, the Qianjiang Group (QJ), a large Chinese state corporation, acquired the Italian company Benelli to expand its business in western markets beyond Italy. The Benelli brand advantage should provide QJ with core competence to survive in the global motorcycle markets; Additionally, Benelli’s skills and experience in motorcycle and scooter technology helped QJ complete its product portfolio. After a successful start, the many cultural differences associated with an Italian business model and a Chinese company became problematic. There were problems integrating the Chinese and Italian cultures and doing a completely different kind of business, and the company faced stiff competition from Japanese competitors. Despite excellent press and large industrial investments to increase efficiency and lower prices, penetration into Western markets was difficult.

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