Strategy and areas of development
Business strategy
The Piaggio Group aims to create value by adopting a strategy which:
› consolidates its leadership position on the European two-wheeler market and on the Indian light commercial vehicles market;
› increases its presence on international markets, with particular reference to the Asian area;
› increases the operating efficiency of all company processes, with a focus on industrial productivity.
To pursue this growth strategy, the Group has adopted an action plan covering its business segments (the Two-Wheeler and CommercialVehicles segments) and geographical segments, as described in the Group’s Strategic Plan for 2010-2013 presented on 23 September 2010.
Two-wheeler segment
Europe - consolidating a leadership position: the scooter product range will be developed and improved, to consolidate coverage of each market segment, and the motorcycle range will be streamlined, to emphasise the unique features of each brand.
Asia - major development: the aim will be to create conditions for sustained, continual growth in the area, also through expanding the production site in Vietnam. The product range will be enhanced and in addition to the Vespas manufactured on site and products imported from Europe, new products manufactured in Vietnam will be introduced, designed and developed for local markets.
India - entering the market: during 2010, an investment project got underway for the manufacture and marketing of two-wheeler vehicles on the local market. By 2012, a new production site will be in operation, with a capacity of 150,000 units/year.
America - going back to growth, by consolidating the product range and sales network.
Commercial Vehicles
India - an increase in volumes and profitability, by consolidating the leadership position on the threewheeler market and developing new, four-wheeler products. As for engines, new diesel and turbodiesel engines will be manufactured in India, in order to expand and segment the product range on all Asian and European markets.
Europe - growth based on eco-sustainable solutions, with a product range featuring new engines with zero or low environmental impact and lower emissions.
Key Assets
The Group will aim to consolidate its business position by levering and investing in the potential of its key assets:
- distinctive brands, recognised worldwide;
- an extensive sales network on reference market;
- competency in research and development, focussed on innovation, safety and the environment;
- a strong international presence, with local operations for all core company processes, from marketing to research and development, production and purchasing.
Sustainability strategy
Embracing sustainability objectives and commitments is fundamentally important for the Piaggio Group and its development. These objectives and commitments are mainly included in and strongly related to the Group’s 2010-2013 Strategic Plan.
The Piaggio Group’s sustainability strategy is based on areas of sustainability which are important for the Group: economic sustainability, product sustainability, environmental sustainability and social sustainability.
The Group’s strategic objectives for Corporate Social Responsibility (CSR) are based on four areas:
- Transparency and economic value:
- creating value while respecting business ethics;
- timely, correct, in-depth information to stakeholders.
- Product innovation and sustainable mobility:
- technological investments to meed the need for sustainable mobility;
- innovation to develop products that are environmentally friendly, safe and cost-effective.
- Environmental sustainability:
- reducing energy consumption;
- reducing emissions of CO2 and other pollutants;
- conserving natural resources;
- waste handling and recovery
- Developing human resources and the context:
- developing, training and promoting human resources so that everyone’s expectations and aspirations are met;
- listening to and assisting customers, to establish relations based on transparency and trust;
- working together with dealers;
- working together with suppliers, through jointly developed projects;
- engaging and supporting local communities through social, cultural and educational initiatives.
These areas form the basis for the sustainability objectives to be pursued in the 2010-2013 period.
The results achieved in 2010, the sustainability policy adopted by the Group and initiatives taken are presented in the Piaggio Group’s Corporate Social Responsibility Report, which is issued at the same time as this Report and is available on its institutional web site www.piaggiogroup.com under Social Responsibility.
