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Ducati World Essay

832 words - 4 pages

Explain what Minoli did to fix Ducati. Describe the fundamental logic behind this turnaround. Minoli fixed Ducati by: evaluating Ducati’s key strengths and weaknesses, defining a strategy to exploit these strengths, investing to further strengthen Ducati’s resources/capabilities and address key weaknesses. 1. Evaluated & appraised what key resources existed at Ducati: • Tangible: good products (“unique and beautiful performance motorcycle”) • Intangible: strong brand (high customer loyalty), location – industrial area of Bologna • Human Resources: top-notch engineers that know what Ducati’s customers want (“knee down” riders, designing good products without marketing research). 2. Defined a ...view middle of the document...

O.C. Strengthen customer loyalty (similar concept to Harley’s HOG). • Motorcycle/accessories/memorabilia - Identified distinctive traits of Ducati’s motorcycles to be associated with the brand - Wrecked racing motorcycle parts - Apparel and memorabilia (shirts, jackets, etc.) 4. Invested in R&D and product development to further strengthen engineering capabilities • Insourced design • Created an “open” structure to explore synergies within the “emilian district” • Increased R&D investment from 3.2 to 12.9 MM EU - Reduced time to market (Over 36 months to 15 months-time to market) - Introduced marketing research to provide fundamental input to design & technological innovation - Allowed Ducati to continue to compete successfully in racing (in US the presence of Ducati in the Superbike was the most important purchase factor). 5. Rationalized production outsourcing weaknesses and standardizing components • Outsourced sub-assembly manufacturing to suppliers in Bologna industrial area • Rationalized its network of supplier through strict selection & quality procedures.

Identified at least 2 sources of suppliers for each component to further safeguard against quality concerns. • Standardization of products and processes - Minimized engine variants, minimized number of processes by outsourcing subassemblies, implement more strict QC process & Platform production process 6. Extended product offering to exploit profit potential of Ducati’s brand and engineering knowledge • Product offering: new models like limited editions, super-sport, hyper-sport, etc. • Spare parts, accessories, apparel and memorabilia (joint-venture with Dainese) Can Ducati keep its spot in the sport segment? Do Honda and the other Japanese motorcycle manufactures pose any threat to Ducati in this segment (explain)? Segment volumes may decrease, possibly reducing profit, but Ducati should be able to maintain its spot in the sport segment. Ducati’s strategic positioning is targeting a subset of buyers willing to pay a premium...

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