Industry analysis 5 forces
Rivalry
* Very high from HD, BMW, Japanese competitors
Bargaining power of buyers
* High low switching cost
Bargaining power of suppliers
* Low has a network of 130 suppliers
* Selected suppliers are chosen
* Core product remain in house
Threat of new entrants
* Low due to strong capital requirement
* and many lager competitors
Threat of substitutes
* Low. High end Product added value to users
Company analysis SWOT
Strength
* Quality product
* Strong R&D
* Brand loyalty
* Competitive racing team
* Distribution system
* Low fix cost due to outsourcing
Weakness
* In the segment with lots of competitors
Opportunity
* New segments
* New market for women
Threat
* Economic downturn customer more price sensitive
* High competition
Financial and Market performance
The companies currently were successful with all of their models with revenue increased more than 20% from 1997 to 2000 and projected reduction in 2001 to 11%. But EBITDA ratio remains high above 15%. The market share for sport motorcycle increased from 3.9% in 1996 to 6.7% in 2000. This is a clear proof that the company was very competitive among existing players.
The company production and supply chain were very efficient. Ducati outsourced approximately 87% of its component yet kept in-house the two substantial parts, crank case and cylinder heads. The supplier networks were carefully chosen with at least two suppliers for each product under short term contracts, giving company much flexibility. The distribution network was designed to provide customers with high quality products and helpful after sell services through improvement of dealer quality and Ducati stores channel
Three core competitive advantages for Ducati
* Very good products with unique and beautiful performance
* The Ducati invested heavily in R&D with 3,7% of revenue. This made company...