Ducati Case
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- Date Submitted: 04/14/2014 12:10 AM
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Ducati Case
1.How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental economic logic of Minoli's turnaround?
Despite Ducati’s small-scale operations, they maintained the status of becoming the second most profitable motorcycle maker in the world. Some factors that led to this are the ways in which Ducati strategized their every move to be as effective as possible in the operation side of their industry. They used a platform-based approach, which in turn caused a greater efficiency as they acquired new supplies, leading to greater profits. Ducati standardized products such as crankcases and cylinder heads, speeding up the manufacturing process. A way that they did this was by creating an environment that focused on quality control systems as well as improving reliability within their operations. Much of Ducati’s money has been invested in research and development, as well as their resources needed to manufacture the top of the line bikes. The fundamental economic logic of Minoli’s turnaround brings about the ideas of discovering the core competencies of the company and improving the production process as a whole. Some other ideas mentioned about Minoli’s turnaround is to improve the motorcycle design, along with building up the brand that Ducati has created, which is geared for the expert motorcyclists. Ducati is very selective about which suppliers they buy from, showing their customers that they only expect the best out of the companies Ducati associates with.
2. Can Ducati sustain its position in the sport segment? Can Honda and the other Japanese manufactures stop its growth in this segment?
Ducati is definitely able to sustain its position in the sport segment. Ducati has built a large, recognizable global brand that allows customers around the world to view them as unique and high quality. Ducati knows it has a very specific customer base, and at one point only advertised...
1.How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental economic logic of Minoli's turnaround?
Despite Ducati’s small-scale operations, they maintained the status of becoming the second most profitable motorcycle maker in the world. Some factors that led to this are the ways in which Ducati strategized their every move to be as effective as possible in the operation side of their industry. They used a platform-based approach, which in turn caused a greater efficiency as they acquired new supplies, leading to greater profits. Ducati standardized products such as crankcases and cylinder heads, speeding up the manufacturing process. A way that they did this was by creating an environment that focused on quality control systems as well as improving reliability within their operations. Much of Ducati’s money has been invested in research and development, as well as their resources needed to manufacture the top of the line bikes. The fundamental economic logic of Minoli’s turnaround brings about the ideas of discovering the core competencies of the company and improving the production process as a whole. Some other ideas mentioned about Minoli’s turnaround is to improve the motorcycle design, along with building up the brand that Ducati has created, which is geared for the expert motorcyclists. Ducati is very selective about which suppliers they buy from, showing their customers that they only expect the best out of the companies Ducati associates with.
2. Can Ducati sustain its position in the sport segment? Can Honda and the other Japanese manufactures stop its growth in this segment?
Ducati is definitely able to sustain its position in the sport segment. Ducati has built a large, recognizable global brand that allows customers around the world to view them as unique and high quality. Ducati knows it has a very specific customer base, and at one point only advertised...