Ducati Essay

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경영학과 60111650 김다경 1. Identify Ducati’s Turnaround Strategy The turnaround strategy was aimed to increase Ducati’s sales and profitability at the beginning and furthermore, to develop Ducati as a global brand for not only riders but also much broader customers all over the world. Frederico Minoli was appointed CEO of Ducati in 1996 because the company was in a situation that needs help revolutionary turnaround strategy. Minoli considered being a strategic turnaround specialist to lead Ducati into profitability as well as establish Ducati as a leader in the sport bike segment .To restructure previous poor management, Minoli set up 2 goals. The first is Double digit growth and second is Equaling Harley-Davidson’s profit level. In order to attain these goals, Ducati broadened its product portfolio, restructured and strengthened its distribution network, focused on developing the brand name, and tried to raise production efficiency. Ducati offered five categories products. Hyper-sport contributed to 43 % of total revenues from motorcycles, Super-sport had been most popular Ducati on road and Naked was recently introduced segment of motorcycles. Besides they also provided Sport-Touring and Limited edition like MH 900 Evolution and 996R. And in order to maximize retail sales and get close to the customers, Ducati started selling motorcycles, spare parts, accessories, and apparel. Also the company offered customized retail environments with an increased level of service and high quality riding gear. In production strategy, Ducati kept s a few small and medium specialized manufacturers for their motorcycles which help to establish more efficient manufacture system. The suppliers were granted with short term contracts which enable the company to have more control over the quality of the parts they received from their suppliers. And it ultimately increased the quality

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