1) Ducati became the second most profitable motorcycle maker in the world despite its small scale thanks to several successful strategies. First of all, the operational effectiveness of Ducati was the key factor to gain the second most profitable motorcycle maker. Their Platform based approach to production caused more efficiency with economic of scale. Also, the Standardizing of products using two crank cases and three cylinder heads creates efficiency gains in manufacturing. Moreover the strategy of outsourcing about 87% of production activities related to spare parts while maintaining core competencies activates like R&D, design, quality control, and key trade market component machining in house resulted in flexibility in new part productions was very well thought. And, last but not least, the establishment of the quality control system focused on improviving reliability and overall quality increased the credibility of Ducati. The fundamental economic logic of Minoli’s turnaround is based on 4 steps. Firstly, we have to identify the capabilities and core competencies to start the turnaround. Then, they should refresh and recapture Ducati brand and expand the customer base which used to be limited to the expert rider. And lastly, they have to improve the production process and the motorcycle design of their products 2) Yes, I believe that Ducati can sustain its position in the sport segment of motorcycle if the management keep the current trend for these following reasons : * Ducati has a good position in the sport-bike segment with valve control system which provides the unique sound. * Good reputation due to the performance in the international racing circuits. Keeping good performance will help to sustain and increase the demand for the company’s products * The sustainable improve of the distribution strategy to maximize retail sales and increase the company awareness of the its retail customers need. * In the sport motorcycle...
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