ABICI Harvard Case Solution & Analysis

Co-founder of the Italian design bike manufacturer estimates if cost reduction through outsourcing would affect its brand. The company was founded in 2005 by three friends in Italy and in the first five years, it has enjoyed steady growth and a solid reputation for producing high quality city bike, valued for their retro look and style. His country of origin, has probably helped them to export their products as their bikes were 100% made in Italy and Made in Italy label had a reputation for quality, craftsmanship and creativity. However, their earnings were relatively low, as their production costs were very high. If they outsource their production? If yes, in China or Eastern Europe? Was there any other way to increase the profitability of the company? "Hide
by Mukti Khaire, Elena Corsi, Elisa Farri Source: Harvard Business School 21 pages. Publication Date: February 28, 2011. Prod. #: 811085-PDF-ENG

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