Ducati Case

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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 and then to transfer them to its production series.

Distribution:
it emphasized the quality of the dealer using single franchise agreements in order to control prices ,and brand positioning by allowing direct communication with customers

Competitors
Harley Davidson, Honda, BMW, Triumph, Other japanese minors

Before the turnaround:

technical superiority thanks to a group of special engineers who represented the soul of Ducati (the growth of its reputation depend on the performance segment). ‘80s: sold by IRI to Cagiva in order to refocus the company on products other than motorcycles. ‘90s: liquidity problems, risk of bankrupt bought by HBS, new era for Ducati.

2) what were the main elements of ducati's generic strategy after the turnaround?

The new CEO of ducati Federico Minoli had two goals in mind: * double-digit growth
* equaling Harley-Davidson's profit level

-developed a clear strategic direction No functional division and no rigid internal boundaries with a clear leadership to stimulate creative decision-making,
- He found 3 things:
* unique and beautiful motorcycles;
* group of incredible engineers;
* brand with strong potential

So
STRATEGIES:

* he decided to develop a global brand that could appeal not only the "extreme" riders, but also to a broader spectrum of customers ( ducati is not only a motorcycle company,it is something more: a dream, a passion, a piece of history) “THE...
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