Strategy - Ducati

796 Words4 Pages
Ducati: In Pursuit of Magic (A) 1. In the last ten years, how has Ducati created and captured value? During the last ten years, Ducati has implement several new ideas and activities to create and capture value. One of the first actions was to re-launched the brand – from a ‘machine’ to ‘entertainment’ linked with other important actions like a new extensive product line expansion to reach other type of customers. Another important action was The “Ducati” World, trying to achieve what Ferrari has done with The Ferrari World. Regarding consumer experience they tried to connect with different Consumer Tribes by: * Online surveys through blogs that brought management close to the consumer * Training sessions for Ducati owners * Club Sponsorships They focused on their competitive Advantages; among other things they did two main changes: * Innovation: Increased R&D from 3.2 to 26.5 m * Outsourcing: 90% of Production is outsourced And last but not least, consolidation of wholesale channels and realized benefits such as control of marketing activities, being closer to the consumer, and flexibility. 2. Given the problems facing Ducati, what should Federico Minoli do immediately? First what he did was to revise the Product Mix: Exit lines that do not sell and are unprofitable and stay with the following lines: Superbike, Naked, Multistrada, Sports Classic. This will reduce operating expenses, focus R&D on specific needs, and improve efficiencies on maintenance (a savings that can be passed on to the customer). And study the operational expenses: Despite selling more in 2002 they are making less profit than in 1999. This indicates there are issues with operating expenses Second was to analyze the Operational Expenses: Revise outsourcing policies, consolidate retail distribution and consider online distribution

More about Strategy - Ducati

Open Document