Answer for No. 3:
In my opinion, as the main market of the company, Ducati is in Italy, hence it might be adventurous if they are focusing its business strategy on electronic commerce. This is because the rate of internet penetration in Italy is the lowest in Western Europe, where only 9% of the 57 million population who are using the internet in June 1999. This might become a risk to the company as if Ducati is fully focusing on electronic commerce, there is a high probability that their target customer might fall into the range of 91% of 57 million population who are not using the internet, hence the sales of the company might drop as the existing or potential customer is less likely to use to internet and visit to the Ducati website to view their product. In addition, the information, any benefit or marketing promotion which announce through the internet will be hard to attract and receive by the potential customer. Moreover, as there will be a huge cost incur in the investment of the new online venture by the company
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Additionally, Ducati may consider the 6 Is on their internet site, where the 6 Is includes interactivity, intelligence, intellectual, integration, independence of location and lastly industry restructuring.
Interactivity involves the viewer of the website to choose and select the product that they might interest on, changing the color or the model of motorcycles which sell on the websites and make the purchase. The viewer may compare the model of motorcycles from one to another and place into their cart or wish list until they were happy with the result. Ducati may provide this type of interaction on their website so that the customer will be satisfied with the
Net Sales – totaled $4,485,000.00 for year 6, and grew +33.3% or $1,495,000.00 between years 6 to 7.
Ducati entered into the accessories, apparel business and custom design components giving customers individuality and high performance, respectively.
Ducati has developed and managed their value chain very well. This contributes substantially to their strong position. I’ve already discussed Ducati’s effective management of Inbound Logistics and Operations. Ducati’s Outbound Logistics approach is oriented around brand management in each of its markets. This is accomplished through dedicated, single-franchise dealerships instead of multi-franchise dealerships. This decision means that Ducati seeks a high-value customer experience with lower volumes in lieu of a mass-market approach. This is a strategy that is consistent with being a niche player; it makes sense for the Japanese firms to have multi-franchise dealerships since they are close substitutes of each other.
Jerry and Elaine went to a store which has a lot of antique staffs, and a lady’s bicycle with a pink frame and a basket caught Elaine’s eyes. Elaine decided to take the bike from the wall by herself. And then, Elaine fell backward because the heavy-weight bicycle. Besides, the backward falls resulted in impact to her neck, which made her painful. Because of that pain, she said the first person who heals her neck can get her bicycle. At that time, Kramer stayed at the house and heard the word that Elaine said. He said that he knows shiatsu and he can help Elaine. And then he really healed Elaine’ neck. After, he said that Elaine can give her bike to him any time. However, Elaine explained that what she said is just a joke, but Kramer took it seriously and he thought they had a deal. In addition, Elaine thought the treatment process took less than 10 seconds, so it was not worth a bike. Finally, Kramer avoided Elaine and took the bike without authorization. After few days, Elaine’ neck was get injured again when she was ready to get up. She went to Jerry’s house to argue with Kramer and thought Kramer should got back the bike, but Kramer said that was Elaine’s fault because she did not sleep in a wooden board for a week. They could not figure out a good way to solve the dilemma. In order to judge the owner of the bike, they decided to find an impartial mediator.
Lately, there have been issues of brand management on the internet. The new digital tools require a lot of adjustments at the executional stage. According to Chaffey (2000) Internet marketing success depends on the sites interactivity features. Also added that a brand’s presence online should be conceived in a way that is sympathetic to the technology and the environment. Many brands fail in the execution of different features resulting in customers’ needs and expectations not being met says Hewson and Coles (2001) The consumer still looks up to the luxury brands although the bond is presently being evolved beyond the existing “top-down” model. (Okonkowo, 2009) The percentage of online shoppers and the sales of luxury brands have been on a positive growth. In spite of the growth, it’s not clear that what drives the consumers to shop online and whether they would be interested in shopping if attractive online stores were introduced. Therefore, what factors affect consumers to shop online will be examined here. A framework is necessary to develop the complex system and determine these factors, influences and buying behaviors of the consumer. (Perea, 2004) Affluent consumers use the internet as their powerful source of information about the luxury products and it is necessary that they have an online presence.
Customers are having high income and want from a particular bike to suit their individual needs.
Northcutt Bikes is a bike manufacturer and a service provider of bike parts to the many retail businesses that sell Northcutt bikes. Northcutt Bikes has a warehouse that is 95% utilized however they have an order fulfillment rate of less than 80%. This has caused a loss of revenue due to orders being cancelled when needed parts are not in stock. To resolve the problem, we looked at 3 alternatives including establishing pooling groups within the same geographic region, establishing a continuous review inventory management system or staying the course. Our recommendation is to establish a continuous review inventory system that will reduce unnecessary inventory, increase needed inventory and improve service levels.
Since prospector should be highly innovative and analyzer’s domain is a mixture of stable and changing product or
Ans: Honda Motor company is basically a Japanese multinational company producer of motorcycles, power equipment and automobile. During the year 1960-1980 is the era of huge success period of the motor company. After gaining huge success in its home area company thought to penetrate in US market in 1959 onwards.
There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.
As for South America, Harley-Davidson Inc. HOG +0.31% opened a permanent Latin America headquarters, joining a growing list of U.S. companies looking to tap into the emerging market. (By Melodie Warner in Market Watch) South America has a growing economy and a huge acceptance for an icon in the motorcycle industry like Harley Davidson. In the same way Japan embraced Harley “Their economy is a fast growing luxury market” p.c11.
Firstly, picking up Ducati as its target company is quite opportunistic. From the traditional investment style’s point of view, TPG is interested in those companies that had grown rapidly but still had the corporate structures of very small companies which caused great stress to the management of the business, and the assets of their target companies always being considered to be divided in order to improve the business riping for LBO. Besides, TPG is expecting to add complexity to the doing the deals and realize fiscal efficiency. Ducati is thus to be an ideal target from these
1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not?
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Italy is one of the fastest growing Ecommerce markets in Western Europe. “Italy has come out recently as one of the major target markets for some online retail brands looking to expand into