Ducati Paper

1054 Words5 Pages
Margaret DeWitt
Ducati Turnaround

The turnaround success of Ducati was the direct result of Federico Minoli’s implementation of a differentiation strategy. As a company that was heading towards bankruptcy, Ducati was saved and revamped by Minoli’s specific vision for the company that were precisely presented in an extremely realistic manner. These goals for the company included double-digit growth for Ducati and equaling Harley-Davidson’s profit level.
After reading the success of this turnaround, one point that I found very interesting and contributed to the company’s success is Minoli’s staffing method for Ducati. Not only did he strive to acquire intelligent and qualified workers, but also he emphasized passion and creativity in
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I think by sticking to one specialty, Ducati has more power over its customers than all other competing companies. This does not however eliminate rivalries between companies altogether. Even though Ducati may have the advantage of differentiation, this particular industry is continuing to grow and with that comes more competition for customers.
I think that one tradeoff that Ducati has to face is staying focused on the sport bike segment rather than branching off into other segments of the market. Even though branching into other product lines may be beneficial in the short-term aspect, I think that by sticking to what they have already successfully built and expanding their current market segment will eventually lead to higher long-term profitability. They could possibly achieve this by expanding distribution. Ducati can offer its product and all of the benefits that come with purchasing one in more locations. The only thing Ducati should be careful of is that they do not over-expand. They want to make their product more available for new customers but not in a way that makes the lifestyle of owning a Ducati as “normal” as owning maybe a Harley-Davidson. They need to make sure they still have the advantage of having that differentiation factor that sets them apart from the competition.
Overall, Minoli’s implementation of the differentiation strategy was critical to the turnaround of
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