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% market share and earning profits comparable to Harley Davidson. Although the company has seen stable change and growth, Minoli refuses to stop here. He hopes to continue growing the business and venture out into a market where Ducati has never been before, the cruiser market. Although Minoli has done nothing but prove himself trustworthy of accomplishing such a change, the cruiser market is so large and already dominated by not only Harley Davidson, but all of the existing cruiser manufacturers as well. The choice to expand the business is wise, but venturing into the cruiser market would not be a good idea. For starters, the cruiser market has been dominated by Harley Davidson since it began in 1903. Harley has seen 15 consecutive years of record revenues and net income, making it an extremely successful and powerful company. They emphasize their focus on the American market and represent a social and cultural phenomenon that no motorcycle company can compare. Not only would Ducati have to compete against the strongest brand in the industry, but there are many other competitors in the cruiser category already. BMW, Honda, Kawasaki, Suzuki, and Yamaha all offer products in that category. Kawasaki created the Vulcan cruiser line which earned the title of being “Cruiser of the year.” Entering a market with such domination would be extremely tough and risky. Ducati’s brand targets a much younger crowd than Harley Davidson. Ducati targets riders ages 25 to...
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