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  • September 2008 (Revised August 2009)
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Columbus Tubing: Steel is Real

By: Daniel C. Snow, Gary P. Pisano, Elena Corsi and Gudrun Urfalino Kristinsdottir
  • Format:Print
  • | Pages:20
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Abstract

Columbus Tubing must choose to improve an old technology (steel) or to develop a new material (carbon fiber). The decision must take into account a complicated context: increased demand for the "old" steel products made in Italy, increasing power of carbon fiber manufacturing partners in Asia, growing wage rates in Asia, and high wage rates in Italy. Two plans have been presented to the CEO, Antonio Colombo. The first is to push development of all of the company's technologies, perhaps even seeking new markets for them. The second is to rationalize operations and to redirect R&D resources to marketing of stylish, lower-tech bicycles. The company's future hangs in the balance.

Keywords

Decision Choices and Conditions; Resource Allocation; Production; Research and Development; Information Technology; Bicycle Transportation; Asia; Italy

Citation

Snow, Daniel C., Gary P. Pisano, Elena Corsi, and Gudrun Urfalino Kristinsdottir. "Columbus Tubing: Steel is Real." Harvard Business School Case 609-042, September 2008. (Revised August 2009.)
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About The Author

Gary P. Pisano

Technology and Operations Management
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More from the Authors
  • Diversification as an Adaptive Learning Process: An Empirical Study of General-Purpose and Market-Specific Technological Know-How in New Market Entry By: Dominika Kinga Randle and Gary P. Pisano
  • Ed Catmull: Lessons from Leading Pixar Animation Studios By: Francesca Gino, Linda Hill, Gary Pisano and Ruth Page
  • Chêne Bleu: Caught in the Trade Tariff Crossfire By: Dante Roscini, Elena Corsi and Daniela Beyersdorfer
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