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Essay Ducati

Satisfactory Essays

1. How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental logic of Minoli’s turn around?
Operational effectiveness is a key to gain profitability. [p 29 What is Strategy?]
Constant improvements in the following operational activities resulted in profit maximization of Ducati:
 Standardization of products using two crank cases and three cylinder heads provided efficiency gains in manufacturing.
 Moved towards a platform based approach to production gaining more efficiency with economies of scale.
 Outsourced almost 87% of production activities involving spare parts while maintaining core competencies like R&D, design, quality control and key trademark …show more content…

• Established an internal design division reducing “time to market” for new products; cross-functional integration required for successful development of new products [Grant p 135].
• Current sport bikes were inspired and derived from their traditional core competencies such as engines with futuristic design and good handling.
 “The World of Ducati”: Minoli wanted to develop a global brand “The World of Ducati” that could appeal to a broader spectrum of customers. Minoli’s initiative was “moving from the mechanical to entertainment”. Supply of product that is differentiated [Grant p 222]
• Ducati entered into Sport-Touring segment, which enabled a complete presence in all categories of Sports segment. Strategic innovation: creating new customer segment [Grant p 213]
• Access-based positioning: Ducati widened the offering by introducing entry-level models coupled with new high-end models expanding their customer base. [p 34 What is Strategy?]
• Access-based positioning: The popular designs were changed over time to appeal to existing customers who enjoyed the bikes of the olden days; customer loyalty. [p 34 What is Strategy?]
• Ducati entered into the accessories, apparel business and custom design components giving customers individuality and high performance, respectively.
• Developed and manufactured riding equipment reflecting the exclusivity and racing character of the company.
• Ducati advertised products in specialized magazines only to

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