Ducati Case Competitive Advantage
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- Date Submitted: 09/29/2011 08:17 AM
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Stephanie Browning
MGMT 5560
August 30, 2011
What did Ducati do to achieve the turnaround? And should Ducati go into the new cruiser market segment?
Ducati, a once successful company, lost sight of its deep Italian tradition of quality, technological performance, and leadership in the competitive sports motorcycle niche industry. Due to its weak management and inability to effectively take advantage of its resources, Ducati lacked a strategic direction, an efficient supply chain system, and strong brand awareness. However, after Minoli created a clear vision and rediscovered what the company represented, Ducati was not only able to recover from bankruptcy, but from 1997 to 2001, the number of the motorcycles sold increased about 61.5%, global revenues increased by 226.47 millions of Euro, profits reached 13.4 millions of Euro, and the world market share within the relevant niche for Ducati increased from 5.1% to 6.7%. Through his passionate leadership direction, supply chain improvements and creation of a “The World of Ducati”, Minoli was able to increase growth yet maintain profit margins, effectively achieving a successful turnaround for Ducati.
Minoli created stability and direction for the Ducati employees by establishing a specific goal and an identifiable company culture driven by passion and cooperation. His goal was to obtain double digit growth and match Harley Davidson’s profit level and he was going to get there with an entirely new set of inexperienced top management driven by their passion for Ducati. The young and inexperienced employees were more likely to accept radical change, establishing a company culture of openness and innovation. He also emphasized the important of minimal internal boundaries, encouraging cross-departmental cooperation and creative decision-making.
To bring back the celebrated tradition of Ducati efficiency and quality, Minoli restructured Ducati’s production and distribution processes. To increase...
MGMT 5560
August 30, 2011
What did Ducati do to achieve the turnaround? And should Ducati go into the new cruiser market segment?
Ducati, a once successful company, lost sight of its deep Italian tradition of quality, technological performance, and leadership in the competitive sports motorcycle niche industry. Due to its weak management and inability to effectively take advantage of its resources, Ducati lacked a strategic direction, an efficient supply chain system, and strong brand awareness. However, after Minoli created a clear vision and rediscovered what the company represented, Ducati was not only able to recover from bankruptcy, but from 1997 to 2001, the number of the motorcycles sold increased about 61.5%, global revenues increased by 226.47 millions of Euro, profits reached 13.4 millions of Euro, and the world market share within the relevant niche for Ducati increased from 5.1% to 6.7%. Through his passionate leadership direction, supply chain improvements and creation of a “The World of Ducati”, Minoli was able to increase growth yet maintain profit margins, effectively achieving a successful turnaround for Ducati.
Minoli created stability and direction for the Ducati employees by establishing a specific goal and an identifiable company culture driven by passion and cooperation. His goal was to obtain double digit growth and match Harley Davidson’s profit level and he was going to get there with an entirely new set of inexperienced top management driven by their passion for Ducati. The young and inexperienced employees were more likely to accept radical change, establishing a company culture of openness and innovation. He also emphasized the important of minimal internal boundaries, encouraging cross-departmental cooperation and creative decision-making.
To bring back the celebrated tradition of Ducati efficiency and quality, Minoli restructured Ducati’s production and distribution processes. To increase...