Ducati Case Essay

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1)Can Ducati sustain its position in the sport segment? Can Honda and other Japanese manufacturers stop its growth in this segment? They followed mostly the path of Harley Davidson in their strategies in different activities. They have spare part card. They competed with quality service. They may have more stores in countries. Absolutely they can… They build a brand. Suppliers good for gears but long term contracts may be build for bikes. for sustainability. Industry Products: Ducati’s products in Hyper-sport, Super-sport, Naked,S port-Touring subsegment products have a great success and they also have limited editions. Also spare parts, accessories and apparels Spare parts availability catalogue went from 10,000 items to 15,000 from 1997 to 2000 Custom-made bike components , high-quality Ducati-branded riding gear “they should emphasis this and can grow like this” “Suggestion” Harley has too, (12 % of total revenue) they should follow them. Outsourcing: policy is aggressive 87 % Majority of its suppliers belonged to the Emilian district “collaborating some firms to form the Engine Technology District” Number of suppliers decreased to be more selective Only short-terms contracts with its suppliers elasticity as the need arose something else But eventually they have to create sustainable models Distribution: First multi-franshising distribution Now new strategy:”taking control of distribution and marketing in strategic markets by establishing ttotally owned sales and marketing subsidiaries .Ducati established subsisieries in Japan,France,Germany,UK and Holland. Not increase geographical reach but improve average quality of the dealers-competent sales force Ducati stores chains They can…grow….. Competitors: Cost strategy: Exhibit 12:Ducati and Harley Davidson cost structure differs at fixed cost level the most,Harley:5.0 % of total

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