From dishwashers to Ferrari : How Loccioni successfully utilized their dominant logic and core competencies

Abstract: The world is facing an unprecedented global environmental disaster. CO2 is currently the largest contributor to global warming and a large part of global emissions come from the automotive industry. The Paris agreement as well as policies and governmental decisions are forcing car manufacturers to transition from internal combustion engines to electric motors. This has led to difficulties for organizations throughout the value chain whose products or services become obsolete. The purpose of this thesis is to examine how a small company called Loccioni managed to use their competencies to grow during this radical industrial transformation. To answer the research question, data was collected using semi structured interviews as well as a period of ethnography.  Results from this case study show that the values and mental models of Enrico and Graziella Loccioni developed over time into a dominant logic which they constantly adapted to changes in the external environment. By following their dominant logic, the company developed their core competencies. Focusing on having strategically similar businesses allowed them to use their competencies transversally throughout different business areas. By realizing what competencies they had, they could move swiftly from working with internal combustion engines to electric motors. Loccioni has also worked hard to develop their customer relationships, which allowed them to work with the same customers in different business areas. Having high trust with their customers also allowed them to work with open innovation and co-create with customers who had cutting edge knowledge in different parts of the e-Mobility business area. This enabled Loccioni to quickly develop their competencies in relatively unknown areas.