Zobele Chemical Industries: the Evolution of a Family Company from Flypaper to Globalization

The Zobele Company, located in Trento, Northern Italy, was founded in 1919 by Enrico Zobele Sr., who became famous when he invented his first “killer product” in 1930... flypaper. After the Second World War, the bombed-out factory was rebuilt by his sons, Luigi and Fulvio. They subsequently introduced new products for home hygiene and home care such as steel wool, mosquito repellent coils, heated mats and vaporizers, which they sold to markets in the Mediterranean, United States and South America. Under the joint leaderships of Chief Executive Enrico Jr., son of Luigi, and Franco and Giovanni, sons of Fulvio, the company globalized in the last seven years. In 2001, Zobele Chemical Industries reported sales of $75 million with profits of $5.1 million. They had 700 employees, factories in Italy, Spain, Brazil, Paraguay, India, Hong Kong, Mexico, and Malaysia with continuing expansions in Italy and China. This paper is a case study of the Zobele family and Zobele Chemical Industries, their past history, present status. It centers on the challenges they face in ensuring continued global leadership in their served market niches, while maintaining the continuity of family ownership and control. The paper first summarizes the organizational, technological and market evolution of the company from 1919 to 2001 and analyzes the critical external and internal success factors. After reviewing the present status of the company, and the challenges family and company face during this period of rapid expansion, we discuss the long-term objectives, and possible strategies and organizational alternatives for achieving them. Finally, we present the practical implications for family enterprises in their attempts to meet the challenges of a globalized marketplace.