1. What was the strategy of DUCATI for last 10 years ?
- First of all the main their strategy was to be an exclusive from another manufactures. Even you put away spoilers from the motorbike, you still are sure that this is DUCATI.
The main DUCATI differents from competitors motorcycles :
Desmodromic Distribution System,
Tubular Trestle frame.
- Secondly, Ducati increased its global reach and expanded their offerings in sport segment.
- Thirdly they expanded their BRAND. (Ducati Stores, Ducati owner Clubs, Events, Museum.)
From that they increased their turnovers, as was written in case :
“On, average, owners that purchase a new Ducati spent 1600 $ within the first 6 months and up 3000$ for the top the range bikes”
2. What are the main problems (strategy) of Ducati ?
- Their main customers are fall in the 18-35 year old age group.
- Minoli wanted to find new sources of growth. They considered the cruiser market, so their goal was to compete with Harley Davidson. WITH VERY STRONG COMPETITOR, which is a leader on cruiser market.
- Compared to the competitors Ducati produces very low volumes.
- Sparse dealer network! It limits Ducati’s exposure to potential customers and the company has no presence in big emerging markets.
3. What should management of Ducati ?
As far as I see, Ducati (management) has developed a potent brand image as well as gained good reputation. Together with engineers they demonstrated an ability to develop successful motorcycles. I would not recommend them to enter to cruiser market, just to stay in sport bike segment. They have huge competitors, like Harley Davidson and they may need huge capital investments. By concentrating in new market , DUCATI can lose focus on the sport bike segment, and lose the value on their brand.
Ducati should just focus and invest more on the...