MABE Case Study: Innovation Through Tradition: A Case Study of Italian family-owned Premium Luggage Company

ABSTRACT

Family-owned business accounted for 49% of Italian GDP and accounting up to 55% of the total manufacturing capacity. (Ruggieri, 2014) Italian is synonymous with the luxury and fashion industry and premium luggage product is also the case, in which innovation is combined with luxurious design and Italian heritage. This case study analyzes the success factors of an Italian family-owned premium luggage company. 4P and SWOT are applied for the fundamental analysis. We found that the key strength of family ownership that leads to the success of the company is the “Innovation thought tradition” philosophy. This family does not sell their shares or consolidate with other conglomerates but keeps the business with the family. The ownership as well as the operation are spread among their descendants. This company offers wide range of the premium luggage and related products, which is a niche area of the industry. In addition to their own product line, they also collaborate with other luxury brands in other industry. This company also manufactures luggage and trolley for many leading brands, where they contribute their know-how to enhance the durability and functionality and learn about the product design from those leading brands. The key to the company success for this Italian company lays in its family ownership structure, the innovation they bring to the industry and the skill the company accumulated.

LEARNING OBJECTIVES

• To understand how an Italian family-owned company success through innovation, marketing and management.
• To explain how the family ownership structure affects company performance.
• To evaluate how the company business model and strategy affect the competitiveness of the firm.