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, other kinds of competitors are expected to arise: Chinese companies whose ability to imitate and create similar products at highly competitive prices is getting more and more dangerous (Piaggio, 2008) Economic forces
Piaggio is the European leader for motor scooters, with a market share just over 50 percent. Annual production of Piaggio motor scooters exceeds 850,000 vehicles. Looking at some statistics referred to the first four months of 2007, an increase of + 10,7% has been registered with compare to 2006. Especially the scooter market is showing a drastic increase in numbers of new matriculated vehicles; during year 2006 62.1% of the totals were scooters. Only in April 2007, there has been a growth of 13,2% with respect to April 2006. The medium high cylinder capacity segment is the one showing highest growth. These data show the great economic potential of the scooter market reflecting needs, willingness but also the purchasing power consumers’ control. A particular case is represented by the Asian market, which documents an increase in sales volume and interest in the motorcycle industry. (Wikipedia, 2008) Political forces
This European icon and mode of transportation debuted in the U.S. market in the 1950s and was...