preview

Ducati: In Pursuit of Magic Case Analysis Essay example

Decent Essays

Ducati: In Pursuit of Magic
By: Hanmiao Li, Bohong Liu, Adam Loewer, Tianyue Shao, Yi Wei

Ducati is a specialized manufacturer of racing and sport motorcycles based in Italy. In this case report, we will analyze Ducati’s competitive position through an opportunities and threats analysis, Porter’s Five Forces, a value and cost drivers analysis, as well as the VRIO framework.

Opportunities/Threats
One of the biggest opportunities in the motorcycle industry is the growth trend of 3.3% in unit sales over the past five years, mostly in the United States and Asia/Pacific markets. Also, the rapid growth of women ridership offers the potential of an even larger customer base in the future. In the sport segment in particular, growth in …show more content…

The U.S. and European markets buy motorcycles for the purpose of recreation and no readily-available product is threatening that purpose.

5) Rivalry
The rivalry in the motorcycle industry is very high. There are many brands such as Suzuki, Kawasaki, Yamaha, Honda, BMW, Harley Davidson, and others which all competing for market share across different categories. In the entry bike category, the Japanese firms have priced some of their European rivals out of the market. In the racing category, the firms literally compete on the track in races that managers believe greatly influence unit sales between them.

Value Drivers/Cost Drivers/Strategy
The key value driver in the industry appears to be customer acquisition. Once a consumer is acquired (buys a motorcycle) they continue to buy accessories for their bike and merchandise of the same brand for years to come. This nature makes the acquisition of a first-time motorcycle buyer extremely important as they are likely to become a lifetime customer. Another value driver is success on the international racing circuits which increases brand image and visibility, and thus sales.
The key cost drivers are parts and components which account for 93% of Ducati’s cost of goods sold. Other cost drivers include research and development, advertising, and assembly costs.
Ducati pursues a focused-differentiator strategy with a niche around sport bikes. They charge

Get Access