MOLESKINE ON THE ROAD

How can a company start selling paper notebooks in the era of laptops, smartphones and tablet PCs, and maintain a double-digit, annual revenue growth rate for more than 10 years? The success of the Moleskine brand, which was created by two Italian entrepreneurs, was the result of carefully designed and implemented product, communication and international distribution strategies. The case begins with a description of the factors behind a successful new entrant into the apparently mature market of stationery products, including the background and experience of two entrepreneurs and their management team, and the naissance of the business idea supported by a profound understanding of the sociological shifts in modern society. As initial positive responses from the market are not always sufficient to ensure long-term success, the two entrepreneurs paid careful attention to the implementation of a slim organizational structure focused on activities that were core to the success of the brand and outsourced the rest. The second part of the case describes a change in the firm's ownership and a new growth phase. A private equity fund acquired the majority of the firm's shares and brought in new managers tasked with maintaining the double-digit growth by reinforcing international distribution activities and by introducing new products under the Moleskine brand. While the central topics of this case study are the firm's business model innovation and its growth strategy, the case also helps to illustrate: (a) the genesis of the differentiation strategies, (b) the importance of the top-management team's competences, and of the firm's core assets in the start-up phase and the subsequent growth phases, (c) the decision-making process regarding foreign market selection, and (d) the growth and brand extension dilemma, in which firms must attempt to balance growth with the desire to maintain the perception of a product's exclusivity.