Vespa Entry in the Us: the Initial Debacle

Questions:

"Vespa Entry in the US: The Initial Debacle"

1. Give a brief about Vespa's evolution and growth.

Vespa is a kind of scooter from Italia and produced by Piaggio. Here, Vespa is designed as a two-wheeled utility vehicle considering utilitarian, stylish, fun, and cheeky.

Basically, vespa itself started from a single model of motor scooter, produced in 1964 to a full line of scooters with many kinds of varieties and functions. Now, Vespa products are the most coveted in the marketplace as they represent the finest combination of form, function and emotion in the industry.

Specifically, for Vespa's evolution and growth in US itself, Vespa is first introduced around 1950 through import. However, it was not sold until 1984 due to problem that its two-stroke engines did not meet the US emission standards as required by Environmental Protection Agency (EPA). In 2000, Vespa returned to US Market to attract the market with new and more modern style. In addition, Vespa is also offered in several models that were better suited to market requirements. In this second phase of entering US Market, Vespa is more attractive as it has more fuel-efficient and emitted fewer pollutants than the previous model. It was proved with the success of gaining US market through higher net sales and higher sales growth.

During 2000, Vespa returned to US with ET series for its Vespa in 50 cc two and four stroke and 150 cc four-stroke. In addition, it was supported with good facility whereby there are 65 Vespa Boutiques scattered throughout US as a place to buy, get service and customize Vespa scooters and its accessories. Furthermore, in light of vastly-increasing US sales, Vespa developed GT series, offering a 200 cc four-stroke. In 2004 Vespa reintroduced a modernized PX 150 to the US.

2. What were the reasons that led Vespa enter the US market in 1950s?

The reason is to expand their target market as Piaggio believes that America will give them a big success to their sales. Growth in US market and US market prospects for scooter seemed be very attractive for Vespa to enter the US market. At that time, Piaggio want to spread Vespa abroad by creating an extensive service network.

3. How was Vespa positioned in the US market?

In 1950, Vespa is first imported to the United States, but it was not sold until 1984 due to some reasons. One of the most crucial problems is that two stroke engines did not meet the US emissions standards as required by Environmental Protection Agency (EPA).

4. Piaggio stopped selling its Vespa in the US market from 1984'. What led Piaggio to withdraw from the US market?

Moreover, another problem came