Ducati Business Analysis
Business analysis of Ducati Motor Holding S.p.A.
February 13, 2011
This analysis will focus on three famous motorcycle brands - Ducati, Honda and Yamaha which have been operating in the motorcycle business for decades. Competition in the industry is high and in order to succeed manufacturers have to manufacture premium quality motorcycles for the same target group. At first sight it might seem that the three brands are identical but a more detailed analysis indicates that there are significant differences in their strategies. All these differences shape each of the three brands and their customers’ preferences.
Ducati
The company goes back to 1926 when three brothers Adriano, Marcello and Bruno Ducati established a company called “Societa Scientifica Radio Brevetti Ducati“ specializing in the production of radio components and electronic devices. The company was, however, destroyed by bombing in World War II which along with the precarious economic situation in post-war Italy led to a shift in the company’s business focus. The company started to operate in the transportation business and changed its name to Ducati Motor Holding. In 1946 the Ducati brothers manufactured their first engine. When the engine gained popularity talented researchers were hired to boost the company’s growth. Since then Ducati has developed significantly and it is now a very strong brand in the motorcycle industry and manufactures six different series of motorcycles. Ducati today operates worldwide and in 2009 made €360 million in sales (Reuters, 2010).
As indicated in the chart, despite a decline in the motorcycle industry Ducati managed to increase its market share from 4.4% in 2005 (Edgar, 2010) to 5.3% in 2010 (Ducati News Today, 2010) as can be seen on the following chart.
(Powersportbusiness, 2010)
Honda
Honda Motor Company is a Japanese multinational company which manufactures motorcycles, cars and garden equipment. The company’s motorcycle department known as
February 13, 2011
This analysis will focus on three famous motorcycle brands - Ducati, Honda and Yamaha which have been operating in the motorcycle business for decades. Competition in the industry is high and in order to succeed manufacturers have to manufacture premium quality motorcycles for the same target group. At first sight it might seem that the three brands are identical but a more detailed analysis indicates that there are significant differences in their strategies. All these differences shape each of the three brands and their customers’ preferences.
Ducati
The company goes back to 1926 when three brothers Adriano, Marcello and Bruno Ducati established a company called “Societa Scientifica Radio Brevetti Ducati“ specializing in the production of radio components and electronic devices. The company was, however, destroyed by bombing in World War II which along with the precarious economic situation in post-war Italy led to a shift in the company’s business focus. The company started to operate in the transportation business and changed its name to Ducati Motor Holding. In 1946 the Ducati brothers manufactured their first engine. When the engine gained popularity talented researchers were hired to boost the company’s growth. Since then Ducati has developed significantly and it is now a very strong brand in the motorcycle industry and manufactures six different series of motorcycles. Ducati today operates worldwide and in 2009 made €360 million in sales (Reuters, 2010).
As indicated in the chart, despite a decline in the motorcycle industry Ducati managed to increase its market share from 4.4% in 2005 (Edgar, 2010) to 5.3% in 2010 (Ducati News Today, 2010) as can be seen on the following chart.
(Powersportbusiness, 2010)
Honda
Honda Motor Company is a Japanese multinational company which manufactures motorcycles, cars and garden equipment. The company’s motorcycle department known as
References: 2010 Powersports Market data book. (2010). Powersport Business. Retrieved February 10, 2011, from https://powersportsbusiness.com/reports/marketdata2010.pdf Annual Report 2010 Bikes. (2011). Ducati. Retrieved February 10, 2011,from http://ducati.com/bikes/index.do Consolidated Business Results Ducati to cooperate with AMG. (2010). Ducati. Retrieved February 10, 2011, from http://www.ducati.com/racing/motogp/news/ducati_to_cooperate_with_amg_/2010/11/17/493/index.do Gavetti Italy 's Ducati sees medium-term IPO-shareholder. (2010). Reuters. Retrieved February 10, 2011, from http://www.reuters.com/article/2010/11/01/ducati-idUKLDE6A01SG20101101 Motorcycle Sales Statistics Porter, M. E. (1998). Competitive strategy techniques for analyzing industries and competitors. New York, N.Y: Simon & Schuster Inc. Tribal Marketing: Ducati. (2010). Conversation Agent. Retrieved February 10, 2011, from http://www.conversationagent.com/2010/04/tribal-marketing-ducati.html