Preview

Competitive Strategies: Ducati vs. Harley Davidson

Better Essays
Open Document
Open Document
1462 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Competitive Strategies: Ducati vs. Harley Davidson
This paper received a 144 out of 160 as a grade.

Competitive Strategies: Ducati vs. Harley Davidson
BUS 508 Contemporary Business
November 5, 2013

Determine how each corporate culture differs from the other.
Ducati is Italian through and through, and Harley Davidson is American made Muscle. While both are very popular brand name motorcycles, they differ in many ways while still having huge followings. Though the two may differ in their customer base, it is certainly agreed that they are both awe-inspiring works of art. According to Lustgarten (2004) in an article published in Forbes Magazine, the corporate culture practiced at Harley-Davidson is, “a place where workers are customers and leather jackets are more common than neckties, that means a lot.” While casual in attire, the employees also have access to executives with offices without doors, “where workers say they're free to speak their minds,” providing input and feedback concerning the company (Lustgarten, 2004). The Harley Davidson website uses the following to describe their corporate culture: “Culture as strong as iron and steel in which the employees are the biggest investment in the future of the company and their competitive advantage (Harley-Davidson, 2013)”. They also state that with that investment in the employees, they in turn want to provide the best possible service and products to customers. With this style of leadership, success is surely in the path of this company.
Ducati culture on the other hand is reflected in the staff that Ducati seeks, such as those with, “passion, an obsession for quality and the pursuit of excellence are the factors which distinguish people who work for Ducati (Ducati USA, 2012).” A representation of the Italian culture that supports performance, aesthetics and status are the marks by which the organization holds itself and chooses its staff. Racing and winning are the focus. Silvano Fini, a manager for the company in Bolonge, confirms that



References: Gerzema, J., & Lebar, E. (2008). The brand bubble: The looming crisis in brand value and how to avoid it. San Francisco, CA: Jossey-Bass. Gizmag Team. (2010, May 07). Ducati breaks 17 year Harley Davidson winning streak with US Grand National Flat Track victory. Retrieved from http://www.gizmag.com/ducati-hypermotard-1100evo-powered-flat-tracker/15017/ High-tech & hand-built. (2013). Automotive Manufacturing Solutions, 14(4), 26-29. Jitchovisut, J. (2012, May 1). The 20 best Ducati’s in movies. Retrieved from http://www.complex.com/rides/2012/05/the-20-best-ducatis-in-movies Karr, J. (2010). Ducati to replace Harley-Davidson at handlebars of societal downfall. Motorcyclist, (1364), 98. Lustgarten, A. (2004). Harley-Davidson. Fortune, 149(1), 76. PR, N. (2013, April 4). Harley-Davidson and Marvel join forces for Marvel 's Iron Man 3. PR Newswire US. http://www.ducatiusa.com/company/work_with_us/index.do http://www.harleydavidson.com/wcm/Content/Pages/Career_Opportunities/culture.jsp?locale=en_US

You May Also Find These Documents Helpful

  • Good Essays

    Due to the longevity of Harley Davidson’s existence they are faced with numerous challenges. Over the years it have become quite difficult for Harley Davidson to maintain their position of high profitability within the United States. The company that once marketed their motorcycles to higher end leisure riders which included a vast majority of baby boomers are now seeking ways to expand their offerings (Hitt, Ireland & Hoskisson, 2015). Problems continues to…

    • 866 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Harley Davidson’s net profit in 2010 was 146.55 million versus a net loss of 55.12 million in 2009 (Global Data, 2011). There are three key elements in which the company has to improve to continue making profit. First, resolve the Unfunded Employee Post-retirement Benefit plan to keep employees producing a good product and maintain a top level company/employee relationship. Secondly, intense competition in the motorcycle market has to be addressed if Harley Davidson plans to increase sales and profit, finally, competition is strong and the brand name alone will not increase its profitability. Strategic Global Branding is the main key to Harley Davidson’s continued rise, and without it the company will stagnate and be reduced to a minor player in the motorcycle industry.…

    • 1605 Words
    • 7 Pages
    Best Essays
  • Good Essays

    Harley-Davidson, Inc. (Harley-Davidson) is one of the leading manufacturers of heavyweight motorcycles in the world. Harley-Davidson is the parent company of the group of companies including Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company offers more than 30 models of touring and custom Harleys through a worldwide network of more than 1,600…

    • 1002 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Harley Davidson Strategy

    • 2222 Words
    • 9 Pages

    Harley-Davidson is a company that despite enjoying nearly 15 years of being a leader in the market place and capitalizing on strong sales growth, find themselves reevaluating their overall strategy. The analysis below goes through the each level of the market-place to determine where, what and how change can take place. At the industry level, it is clear that the mature product life cycle necessitates stronger price competition, further expansion into foreign markets and more diversification of their product-lines. Next at the firm-level, Harley-Davidson needs to continue to capitalize on their strengths like brand equity and supplier relationships, focus on their value adding functional-level practices like quality management and finally, begin to see weaknesses such as high-price sensitivity and narrowly defined target markets as an opportunity to creatively tap into unexploited demographics markets such as women and consider challenging their premium price strategy, if even for brief time. To achieve the corporate-level objective of increasing international sales it is vital that continue to explore markets that can economically support premium priced, luxury products, are politically stable and friendly to foreign investment from the United States. Since this is a tall order for many viable countries, Harley Davidson must be willing to challenge their deeply entrenched status-quos. This will mean lifting off-shore shipment limits and letting go of the reluctance to move motorcycle assembly abroad.…

    • 2222 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Founded in 1903, the Harley-Davidson Motor Company set out with a goal of “taking the work out of bicycling” (Austin, 2003, p.1). Despite beginning in a shed just 17 years prior, Harley-Davidson was able to rapidly transform into the world’s largest motorcycle manufacturer by 1920. Along with the establishment of a dominant worldwide presence, Harley-Davidson forged a defining company image. Company CEO Jeff Bleustein described Harley-Davidson’s image as “a little bit special, a little bit mysterious, a little bit bad.” This image of “an almost mystical power” to live free and adventurous created a demand from customers, so strong, that many “were willing to wait up to two years for a motorcycle” (Austin, 2003, p.2).…

    • 3591 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    Ducati Solution

    • 2852 Words
    • 12 Pages

    Issues/Challenges Today, Ducati is one of the most successful motorcycle companies in the world with a dramatic profit growth since 1996. Before its huge success, Ducati was one step away from facing bankruptcy. Ducati managed to overcome such an obstacle through strong innovation and culture. Today, Ducati is faced with another challenge that may bring fortune to the company if successfully managed. Ducati set a new goal, which is to sustain the explosive double-digit profit growth in the next decade and eventually reach Harley Davison’s profit level. Ducati is considering attacking Harley Davidson by entering the cruiser market, which is Harley Davidson’s niche product and also a very profitable market segment in the industry. To do this, Ducati must invest 17 million Euro and cost of 26 million Euro. Based on this huge capital requirement, should Ducati enter the new market segment or should Ducati just concentrate on its current segment? If Ducati chooses to enter the cruiser market, what are other requirements besides the capital? Does Ducati have what it takes to succeed in the new market segment? The purpose of this memo is to help the executives of Ducati to make the optimum decision for Ducati’s future success. This memo contains the industry analysis, as well as an internal strategic analysis, company performance, and solutions and recommendations. This industry is divided into 4 segments. Ducati’s dominating segment is the sport sector. Ducati managed to utilize its differentiation strategy by taking into account of the industry’s driving forces. The cruiser segment is one sector that Ducati is very interested in entering. Unfortunately, Bert’s consulting concluded that this is not the best option through the feasibility analysis. The analysis contains the advantages and disadvantages of both options and the result was that the disadvantages outweighed the advantages. Also, entering the cruiser market is not really necessary for Ducati based on its…

    • 2852 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Harley Davidson has built a brand that is more than just the spread eagle on a load rumbling motorcycle, but for those who purchase a Harley they are purchasing a lifestyle, an experience, or piece of American culture if you will. Due to this differentiating factor Harley has been able to charge a premium for its products and still be successful against its lower priced competition. Harley built upon this lifestyle when it created the Harley Owners’ Group (HOG). Harley would promote shows, rallies and rides through HOG in the US and even in other countries. This helped to build its coveted image into more of an exclusive club.…

    • 1820 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Ducati

    • 484 Words
    • 2 Pages

    Ducati’s decision to move from a mechanical company to an entertainment company could be the source of its success or its failure. The company to this point in 2001 had become known for their exotic engineering and design, focusing on beating the completion by any means, even if it involved producing a bike that many might call ugly or not the traditional motorcycle, so Ducati was running the risk of turning away the very customers and removing the image that had built them to the company they had become. But the decision made by Minoli, to become more of an entertainment company and to produce products that could be attractable by a wider variety of customers could also spur growth and market share that the company desperately wanted and needed if it was going to continue to compete with the Japanese bikes.…

    • 484 Words
    • 2 Pages
    Good Essays
  • Good Essays

    To reach this particular target audience, Harley Davidson aggressively advertises in women magazines such as Glamour, Shape, and Lifestyle. In addition, Harley Davidson has dedicated a section of their website to women motorcyclists, routinely hosts “garage parties” to educate and…

    • 944 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Harley Davidson has a culture that is unique like no other organization. The Harley culture has changed and adjusted itself accordingly throughout history. Harley Davidson’s success is due to the culture that it has created. The three main aspects of Harleys culture is 1. Harley has such an inclusive nature of Family, that it is able to bind its customers together through implementing them into a lifestyle. 2. The employees are customers; they are a big part of the Harley family. 3. Harley Davidson is able to implement such strong cultural through the passion and value which Harley is able to provide quality and love of their product. Through this Learning Journal I am going to summarize the Thesis paper, which I chose to read and then discuss and apply my opinions and values to the Journal.…

    • 982 Words
    • 4 Pages
    Good Essays
  • Good Essays

    One of the biggest opportunities in the motorcycle industry is the growth trend of 3.3% in unit sales over the past five years, mostly in the United States and Asia/Pacific markets. Also, the rapid growth of women ridership offers the potential of an even larger customer base in the future. In the sport segment in particular, growth in the next few years is expected between 2% and 3%. The history and brand recognition of Ducati will help them to attract some of these new customers related to industry growth.…

    • 1538 Words
    • 7 Pages
    Good Essays
  • Better Essays

    The story of Harley-Davidson is an interesting story that I hope you will enjoy learning about. The motorcycles are true legends of art, but the people who choose to ride these machines are truly remarkable people. People often judge a group of riders as being a rough and rowdy crowd looking for trouble, but as you will learn through this paper, most of these groups are the friendliest and most helpful people you could find.…

    • 2572 Words
    • 11 Pages
    Better Essays
  • Good Essays

    Ducati

    • 747 Words
    • 3 Pages

    Technology superiority has long been a part of Ducati. The introduction of the Desmodronic valve…

    • 747 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The “Posse Ride” is probably the most important MKT instrument to build and preserve internal aspect of Harley-Davidson product regarding its brand;…

    • 522 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ducati Case Study Investindustrial Exits Ducati  At the begining of 2012, Investindustrial openly introduced their intention to market their 76.7% stake in Ducati Motor Holding, an legendary Italian producer of sport performance motorcycles.  The choice adopted a six-year turnaround throughout which Ducati came back to profitability and considerably broadened its products. Options Investindustrial 's team had the next exit options  IPO in Hong Kong  Trade sale to an industry participant from the motorcycle or automative sector  Trade sale to another financial investor IPO in Hong Kong…

    • 318 Words
    • 4 Pages
    Satisfactory Essays