Essay about Ducati Case Study

2311 Words Oct 18th, 2010 10 Pages
Ducati nearly faced on bankruptcy 1996 though it has good reputation on the famous mechanical system and its unique extreme performance. In the fierce competition with the domination by Japanese companies with high technology, it is difficult to survive or even recover from bankruptcy. Fortunately, the explosive growth and profitability occurred from 1997 led by the CEO, Federico Minoli. This document is the case study of Ducati recovering to a position owing a certain amount of market share.

Analyzing the external environment

The General Environment Analysis

The case of Ducati involves the whole world analysis, which does not mention the specific country. Each company produced the motorcycles with its certain target
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Honda is famous for the naked ones in sport segment. Yamaha, Suzuki and Kawasaki compete on technological innovation and the acceptable price. These three Japanese companies held a market share of 57% in 2001. Honda and Yamaha agreed to transport their motorcycles together, saving the delivery costs.

Overall, most motorcycle companies use the methods of advertising and play an important role on production line with the high quality and technology. Fortunately, Ducati has its own characteristics and survive in the competition depending on its ‘turnaround program’ facing these competitors.

Analyzing the Internal Environment

Resources Analysis

• Tangible Resource

Financial resources: Ducati got a certain amount of revenues form sponsors. The stake owners offered Ducati enough fund to operate.

Organizational resources: Ducati’s organization system is totally perfect operated by a group of excellent managers to handle its network suppliers and its distributions. Besides, it has rigorous control system involving the rationalized and flexible control of components from suppliers and the owned production. Also, it implements an ‘open paddock’ policy for its club members’ communication to help the improvement.

Physical resources: Ducati has efficient manufacturers producing the standardization of its products and established a museum to display their majority of race track models and the

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