World Literature

Company Overview
Ducati is an Italian manufacturer of high-end sport motorcycles, founded on July 4, 1926.   In the 1950s, the company introduced their signature Desmodromic valve distribution system (Desmo), which can still be found on every motorcycle Ducati produces.   The Desmo system represents the soul of all Ducatis, with its deep intoxicating sound emitting from the engine.   Since the introduction of the Desmo system, the company has dominated the international racing circuit and developed a reputation for high performance and technical superiority, specifically in the sport segment of the large displacement (>500cc) motorcycle industry.   As a result of Texas Pacific Group acquiring a majority stake in Ducati and the appointment of Federico Minoli as CEO in 1996, the company has seen explosive growth and profitability, with revenues quadrupling, EBITDA up to 60 million from 33.4 million in 4 years, and an increase in sport segment market share to nearly 7%.
Ducati’s Strategy
The large displacement (>500cc) motorcycle industry is divided into four segments: off-road, cruisers, touring and sport bikes.

The four Ducati model lines differ in design, technical features and target customers. The most popular model line is the Monster (52.1% of revenues in 1999), followed by the Superbike (25.2%), the Super Sport (14.3%) and the Sport Touring (8.4%). The flagship product, Superbike, has gained much ground over the last 3 years. Besides motorcycles, Ducati sells parts, accessories and apparel in 40 countries worldwide, with a focus on Western Europe and North America. In 1999, these regions accounted for 85% of overall sales with the remaining 15% generated in Asia and Australia.
Ducati has a global distribution network. In Belgium, Italy and Sweden, it sells motorcycles and related products to its retail dealers directly out of Bologna. In other key markets (including Germany, France, Japan and the United States), wholly owned subsidiaries are responsible... [continues]

Read full essay