Ducati

1. How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental logic of Minoli’s turn around? Operational effectiveness is a key to gain profitability. [p 29 What is Strategy?] Constant improvements in the following operational activities resulted in profit maximization of Ducati:  Standardization of products using two crank cases and three cylinder heads provided efficiency gains in manufacturing.  Moved towards a platform

Ducati In: Business and Management Ducati Ducati feedback Q1. I wanted you to begin by recognising that this was a turnaround situation, with Ducati in 1996 close to bankruptcy. A new management team led by Minoli changed strategy with clear objectives of aggressive growth within a niche of the sports segment and competing as a focussed differentiator. The logic of the turnaround can be conceptualised as follows (a) Ducati reduced costs without affecting the WTP for the physical product

2002 GIOVANNI GAVETTI Ducati By the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaround i artist” -- as Forbes magazine dubbed him –- had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world; a mechanical concern into a global brand; a fast motorcycle into a symbol of Italian design and tradition, extreme performance, and technical excellence. Under Minoli, Ducati had enjoyed explosive growth

Analysis of External Environment of Ducati (Answer of Q. 2) In classical strategy literature, competitive advantage of a company is generally attributed to the management’s ability to position the company’s assets against some external context (Mintzberg et al, 2005 & Juga, 1999). This external context is referred (Porter, 2004) as external environment for a particular company. According to Johnson et al (2008:54), the environment is what gives organisations their means of survival.” So, it

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

Ducati Case Analysis Table of Contents Executive Summary 2 Evaluation of Global Motorcycle Industry 3 Ducati’s Current Strategy 4 Recommendations and Specific Actions 7 Major Internal and External Risks 9 Exhibit 1: Porter’s Five Forces Diagram 11 Exhibit 2: Strategy Diamond Analysis 12 Exhibit 3: Projected Sales 13 Executive Summary As of year 2000, global motorcycle market is dominated by a handful of players. Japanese

Before to Ducati’s acquisition by Texas Pacific Group, a deep financial crisis affected Ducati, undermining its production and consequently negatively affecting its market results. Production was less than production capacity and therefore it was clear that a relaunch of the company was necessary. The strategic plan carried out by Ducati Group, with the help of newly appointed Minoli, focused on the idea of increasing the company's value through a growth in turnover volume and protection of product

Ducati began as a small company manufacturing electrical components for radios. Twenty years later, after World War II, they launched a small motor to augment bicycles. Soon thereafter, Ducati began producing a frame to pair with their small engine. Increasing popularity of their small motorcycle encouraged the development of two different engine sizes. Within the next few years, Ducati introduced the Desmodromic system to increase power and performance. This innovation has remained central

Ducati & Texas Pacific Group – A ”Wild Ride” Leveraged Buyout 1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not? TPG strategy is to invest in undervalued firms’ that usually have been poorly managed. The investments are made in privately hold firms that are either unlisted from the beginning or that is being delisted from the stock exchange under the LBO process. TPG wants to invest in firms with a “healthy” basis but that are experience

Ducati & Texas Pacific Group – A ”Wild Ride” Leveraged Buyout 1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not? TPG strategy is to invest in undervalued firms’ that usually have been poorly managed. The investments are made in privately hold firms that are either unlisted from the beginning or that is being delisted from the stock exchange under the LBO process. TPG wants to invest in firms with a “healthy” basis but that are experience