In classical strategy literature, competitive advantage of a company is generally attributed to the management’s ability to position the company’s assets against some external context (Mintzberg et al, 2005 & Juga, 1999). This external context is referred (Porter, 2004) as external environment for a particular company. According to Johnson et al (2008:54), the environment is what gives organisations their means of survival.” So, it is important to a great extent that most of companies be aware of the environment in which they are operating. In Author’s view, Ducati was aware to a certain extent what is the external environment surrounding it. This answer will attempt to analyse the external environment as it appears to author from the analysis of case study (Wit & Meyer, 2004:854). This answer will look first macro environment of Ducati using PESTEL framework, then Industrial environment, and after that Competitors and Markets (Johnson et al, 2008) mainly using Porter’s five forces model (Porter, 2004:6).
Macro environment of Ducati
Macro is remote environment of a company comprising economic, social, political, technological and ecological factors (Pearce & Robinson, 2005). One way of looking at remote environment is PESTEL framework (Johnson et al, 2008).
Economic
Not comes explicitly from the case but most of the economies that company was mainly operating in low growth mature markets and open economies.
Political
Not clear from the case but most of countries like USA, UK, Japan, Italy, France, Germany is quite stable and company mainly operated in developed countries.
Social * Women becoming oriented towards biking
* Different tastes and lifestyle , and changing at faster rate
Technological * Fuel efficient and high performance engines * Improvement in Paint, Trim, Chrome, Exhaust pipe shaping (Wit & Meyer, 2004:857). * Electronic Components * CAD & CNC