Growth Strategic Models in the sector of Professional Equipment for the Food Service

Abstract

The white goods sector represents one of the hallmarks of the Italian economy; it is considered the second manufacturing industry after the automotive. This sector is fragmented into a wide range of products such as chimneys and smoke ducts, hoods, air-conditioning and heat pumps, large appliances, small appliances, freestanding cookers, electric boilers, professional equipment for the food service and so on. The dissertation examines in depth only one of them, the segment of the Professional Equipment for the Food Service. Although the manufacturers of Professional Equipment represent a market niche and they generate only a small share of the total turnover of the white goods sector, the Confindustria association CECED Italia identifies the Professional Equipment as the healthiest branch inside the white goods. Unlike other sectors, the figures show how the domestic production of Professional equipment for the Food service has not suffered from the arrival of the Low Cost Countries in the international scene. Conversely, the Italian manufacturers have been able to increase their competitiveness and expand the presence on world markets. Since forever, Italy is recognized as the homeland of the good eating and drinking with its tasteful cuisine. The world is full of typical Italian places like pizzerias, restaurants and bars where people go to taste a piece of Italian culture. The manufacturers of Professional equipment are part of this cultural movement: they act as architects for handing down and spreading knowledge and desire for the Italian taste through an unquestionable know-how in manufacturing Coffee machines, professional Kitchens, Refrigerators, Gelato machines, Ice makers, equipment for Bakery, etc. These products are the symbol of one of the sectors of the Made in Italy – Food – best known and appreciated in the world. The analysis of the manufacturers of Professional Equipment is complex due to the different products included in the sector. After having studied the dynamics and the profitability levels for each product family in a time interval of 5 years, the dissertation presents some successful business cases identified for their best economic performance both on the domestic market and outside the national borders, and for their constant flux of innovation in the product offer. Through the study of these successful companies, leaders in their strategic business area, the dissertation research aims to draw an innovative business strategy built on a new value proposition driven by unique Design, cutting-edge Technology solutions, and a high level of Quality in terms of product and working processes. The theoretical model resulting from this research highlights the Design, Technology and Quality as the three pillars on which companies can build a continuous process of product innovation.