INNOVATION AND PRODUCT DEVELOPMENT STRATEGIES IN THE ITALIAN MOTORCYCLE INDUSTRY

The motorcycle industry in Italy offers fertile ground for anyone inte rested in developing a better understanding of the role innovation pla ys in enhancing a firm's competitive position. This industry includes both domestic and Japanese firms, with companies ranging from high-vol ume manufacturers to specialty or niche producers. Firms trying to gai n a competitive edge in this crowded field must contend with not only advances in product and process technology, but also the whims of fash ion. In a survey of top-bevel marketing and product development manage rs from eight leading firms in the Italian motorcycle industry, Moreno Muffatto and Roberto Panizzolo explore the innovation models these fi rms employ to enhance their competitive position. Their study has the following objectives: categorizing the various competitors in terms of their product and market strategies and their product development and innovation strategies; highlighting differences between the methods o f Italian and Japanese firms competing in this market; analyzing the r elationships between firms, as well as the roles suppliers play in the various innovation strategies; and identifying the various organizati onal models employed by the firms in this industry. Different product and market strategies are identified on the basis of three variables: total production volume, the number of different products offered and the number of different engine capacities offered. Using these variabl es, the companies in the study are categorized as volume producers, sp ecialists, or niche specialists. The firms are further differentiated on the basis of the relative emphasis each places on product technolog y and design, product innovation product variety, and time-based compe tition. In the firms studied partnerships play a key role in new produ ct development. Nearly every firm participates in joint projects, most often involving development of either an entire vehicle or an engine. Other partnerships involve firms in countries that offer emerging mar kets for the motorcycle industry. Organizational structures and strate gies employed by the volume producers in this study include. the large product lender, who oversees concept definition and product planning; the project lenders group, which coordinates all phases of developmen t, including activities assigned to external groups; the project manag ers matrix, a matrix organizational structure with a strong product or ientation; and the business unit program manager who oversees all proj ects within an independent business unit.