Ducati and Texas Pacific Group Case StudyFinancial PolicyApril 8‚ 2010 | Chris CovielloMatt CarrozzaChris HammondNick Baseel | Introduction In the Fall of 1995 Texas Pacific Group (TPG)‚ by way of Abel Halpern‚ expressed interest in purchasing Ducati‚ the Italian motorcycle company‚ from Cagiva‚ an Italian conglomerate owned by the Castiglioni family. Cagiva owned a number of diverse companies but had become excessively leveraged‚ and Ducati’s profits were believed to be supporting other failing
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DUCATI CASE 1) How would you characterize Ducati’s strategy in terms of the types of generic strategies described in the first reading above? Marketing made by * specialized magazines‚ perfect to educate buyers about the characteristics of the bikes * non specialized magazines * racing events Technology and R&D: Ducati was innovative thanks to its desmodromic valve system and L-twin engine. It used racing competition to develop technical solution and test materials
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Ducati: Taking on the Challenge On the first business day of January 2006‚ Federico Minoli pulled up and parked his Ducati Multistrada motorcycle in front of the Ducati headquarters in Bologna‚ Italy. As he looked up at the complex‚ which housed offices‚ the assembly factory and the Ducati museum‚ he reflected back on the company’s history. 2006 would mark several anniversaries: 80 years since Ducati was established to produce electronic radio equipment; 60 years since Ducati had been producing
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In 1926 Antonio Cavalieri Ducati and his three sons‚ Adriano‚ Marcello‚ and Bruno Cavalieri Ducati; founded Societa Scientifica Radio Brevetti Ducati in Bologna to produce vacuum tubes‚ condensers and other radio components‚ becoming successful enough by 1935 to construct a new factory in the Borgo Panigale area of the city. Production was maintained during World War II‚ despite the Ducati factory being a repeated target for Allied bombing. Ducati Factory Ducati "Cucciolo"‚ 1950 Meanwhile
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Ducati Q) How did Ducati become a profitable motorcycle maker despite its small scale? Before its takeover by the American private equity firm Texas Pacific Group (TPG)‚ Ducati went from being one of the top manufacturers of the high performance sport motorcycle industry to being on the verge of bankruptcy. TPG identified Ducati as a high end product with enormous potential for growth but realized that serious change was required if Ducati was to ever fulfill this potential. TPG decided to
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Introduction Ducati nearly faced on bankruptcy 1996 though it has good reputation on the famous mechanical system and its unique extreme performance. In the fierce competition with the domination by Japanese companies with high technology‚ it is difficult to survive or even recover from bankruptcy. Fortunately‚ the explosive growth and profitability occurred from 1997 led by the CEO‚ Federico Minoli. This document is the case study of Ducati recovering to a position owing a certain amount of market
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Executive Summary Ducati‚ founded on July 4‚ 1926‚ is an Italian company that produces and sells sport motorcycles. From the advent‚ Ducati has been a front runner on the motorcycle technology front. The hallmark of Ducati’s technical excellence has been its Desmodromic engine‚ famous for its remarkable power delivery. It is found on almost every motorcycle Ducati has produced till date. In 1996‚ Ducati was on the verge of bankruptcy due to lack of working capital. The company rebounded by 2000
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Patrick England Ducati individual write up #3 Management 495 2/7/2012 Can Ducati sustain its position in the sport segment? Can Honda and other Japanese manufactures stop its growth in this segment? The ability for Ducati to sustain its position in the sport segment of motorcycles is going to depend on management’s ability to stay focused on keeping their image and story alive and in the minds of the motorcycle community. If management continues its current trend I believe that
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Ducati & TPG – A “Wild Ride” LBO Case Study December‚ 2010 Q1. The nature of the opportunity and the question of brand expansion 1.1 The situation of the target firm Positives: (1) The Ducati brand was world famous;(2) The product was great in terms of technology and quality and it had won the 1990‚ 1991‚ 1992‚ 1994‚ and 1995 World Superbike championships against strong competition;(3) Ducati’s product family was broad offering 15 models in four families based on seven different engines;(4)
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Harvard Business Case: Ducati Introduction After the introduction of Federico Minoli‚ Ducati has transformed from a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world. But this is not enough for Minoli‚ who currently considers entering the Harley Davidson niche: introducing a Ducati cruiser. However‚ according to the analysis below – prepared using some basic strategic questions - this would not be a very wise
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