Ducati Essay

572 Words3 Pages
Ducati 1. How did Ducati become the second most profitable motorcycle maker in the world? - First, Ducati had a very good product. It is unique, beautiful performance motorcycles - Second, Ducati had a group of top-notch engineers- both in the R&D and in the racing divisions- whose main goal was to continue defeating; The company is driven by its excellent engineers and designers - Third, Ducati has a brand with strong potential. In major European markets, Ducati’s brand loyalty ranked among the highest in the motorcycle industry, with about 55% of its small customer - Continuing outsourced most of the production activities from 80% to 90%, mainly by a firm that is highly efficient - A platform approach to production. The motorcycle was divided into a relatively small number of components, which were in turn made of sub-components. - Distribution: in the past it distributed directly through multi-franchise retail dealers in Italy, and through a series of independent distributors. Then in 1997, it started a new distribution strategy which is unfolded in three phases, to improve the average quality of the dealers, including a creation of a chain of “Ducati stores” - R&D: increase effort in R&D, which took 3.7% of total revenue 2. What is the fundamental logic underlying its turnaround? Global branding strategy: to develop a brand that could appeal not only to “extreme” riders, but also to a broader spectrum of customers and launch the world of ducati Invest heavily in the product rationalize production processes New engine Entering sport Thanks to their technical superiority, Ducati motor cycles rapidly 3. Can Ducati sustain its position in the sports segments? 4. Compare and contrast the strategies of Ducati and Southwest Airlines. Similarities: 1. Both Ducati and SW airline has standardized products parts, In

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