Publications
Publications
- September 2008 (Revised August 2009)
- HBS Case Collection
Columbus Tubing: Steel is Real
By: Daniel C. Snow, Gary P. Pisano, Elena Corsi and Gudrun Urfalino Kristinsdottir
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; 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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