The House of Beretta: Case Analysis
Case: The House of Beretta
Critical Issues/Concerns in the Case:
Beretta’s main core competencies are in innovation and technology. For example, Beretta matched its creative goal by teaming up with inventor Tullio Marengoni and develops the first submachine gun. Additionally, Beretta proved it was embracing technology by moving quickly to introduce robotic manufactured firearms to their product line. This aggressive move allowed Beretta to offer an affordable alternative to the traditional hand engraved carvings—an appeal to customers from various income levels. Quality hand -carved guns are expensive, while robotic carvings are less expensive. Offering a full range of weapons in its core product line (from small pistols to machine guns), Beretta makes an effort to produce a wide scope of products in terms of cost and quality. Furthermore, Beretta expands product reach that supports its core products through acquisitions and start-up ventures (i.e. small guns, competition rifles, sporting clothing, etc.) while diversifying their revenue stream.
According to the BusinessWeek article, “The Living Company: Habits For Survival in a Turbulent Business Environment”, “the average life expectancy of a multinational corporation-Fortune 500 or its equivalent- is between 40 and 50 years. This figure is based on most surveys of corporate births and deaths.” Beretta is a 500 year-old family-owned gun making business. Putting this number in perspective, 500 years is a long time frame for a business to be alive, and this figure reflects the success of the Beretta family and their strong core values/tradition, their company’s devotion to innovation and technology, and their corporate motto, “Prudence and Audacity.”
The issue at hand is how to execute the re-organization of Beretta. Given that families tend to avoid relinquishing control of their family-owned firms and considering the deep rooted heritage of Beretta, the company’s old age, and strong
Critical Issues/Concerns in the Case:
Beretta’s main core competencies are in innovation and technology. For example, Beretta matched its creative goal by teaming up with inventor Tullio Marengoni and develops the first submachine gun. Additionally, Beretta proved it was embracing technology by moving quickly to introduce robotic manufactured firearms to their product line. This aggressive move allowed Beretta to offer an affordable alternative to the traditional hand engraved carvings—an appeal to customers from various income levels. Quality hand -carved guns are expensive, while robotic carvings are less expensive. Offering a full range of weapons in its core product line (from small pistols to machine guns), Beretta makes an effort to produce a wide scope of products in terms of cost and quality. Furthermore, Beretta expands product reach that supports its core products through acquisitions and start-up ventures (i.e. small guns, competition rifles, sporting clothing, etc.) while diversifying their revenue stream.
According to the BusinessWeek article, “The Living Company: Habits For Survival in a Turbulent Business Environment”, “the average life expectancy of a multinational corporation-Fortune 500 or its equivalent- is between 40 and 50 years. This figure is based on most surveys of corporate births and deaths.” Beretta is a 500 year-old family-owned gun making business. Putting this number in perspective, 500 years is a long time frame for a business to be alive, and this figure reflects the success of the Beretta family and their strong core values/tradition, their company’s devotion to innovation and technology, and their corporate motto, “Prudence and Audacity.”
The issue at hand is how to execute the re-organization of Beretta. Given that families tend to avoid relinquishing control of their family-owned firms and considering the deep rooted heritage of Beretta, the company’s old age, and strong