Federrico Minoli’s successful turnaround of Ducati was focused on brand creation which was supported by the reconfiguration of a number of activities ranging from increased efficiency in the production process to broadening its customer base. This turnaround can be attributed to two strategic changes that Ducati implemented; firstly Ducati increased its global reach and expanded its offerings within the sport segment and secondly it transformed itself from being a manufacturing company to an entertainment
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1. How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental logic of Minoli’s turn around? Operational effectiveness is a key to gain profitability. [p 29 What is Strategy?] Constant improvements in the following operational activities resulted in profit maximization of Ducati: Standardization of products using two crank cases and three cylinder heads provided efficiency gains in manufacturing. Moved towards a platform
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Margaret DeWitt Ducati Turnaround The turnaround success of Ducati was the direct result of Federico Minoli’s implementation of a differentiation strategy. As a company that was heading towards bankruptcy‚ Ducati was saved and revamped by Minoli’s specific vision for the company that were precisely presented in an extremely realistic manner. These goals for the company included double-digit growth for Ducati and equaling Harley-Davidson’s profit level. After reading the success of this turnaround
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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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Issues/Challenges Today‚ Ducati is one of the most successful motorcycle companies in the world with adramatic profit growth since 1996. Before its huge success‚ Ducati was one step away fromfacing bankruptcy. Ducati managed to overcome such an obstacle through strong innovation andculture. 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 profitgrowth in the next decade
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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
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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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Case Study: Ducati Should Minoli seek to grow the business in 2001? Since Minoli took the position as CEO of Ducati in 1996‚ the business has grown and became extremely successful. He transformed a company that was once on the verge of going bankrupt into one of the most profitable motorcycle manufacturers in the world. The explosive growth‚ profitability‚ market share‚ and revenues prove Minoli truly is an expert in turnaround management. He set high goals for the company such as reaching 10%
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Questions to answer 1) How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? 2) What is the fundamental economic logic of Minoli’s turnaround? 3) Can Ducati sustain its position in the sport segment? Can Honda and the other Japanese manufactures stop its growth in this segment? 4) What strategic alternatives are available to Minoli in 2001? Which alternatives would you recommend‚ why? GMAN 512 Midterm 11 February 2010
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