Preview

External Environmnet Ducati

Powerful Essays
Open Document
Open Document
2564 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
External Environmnet Ducati
Analysis of External Environment of Ducati (Answer of Q. 2)

In classical strategy literature, competitive advantage of a company is generally attributed to the management’s ability to position the company’s assets against some external context (Mintzberg et al, 2005 & Juga, 1999). This external context is referred (Porter, 2004) as external environment for a particular company. According to Johnson et al (2008:54), the environment is what gives organisations their means of survival.” So, it is important to a great extent that most of companies be aware of the environment in which they are operating. In Author’s view, Ducati was aware to a certain extent what is the external environment surrounding it. This answer will attempt to analyse the external environment as it appears to author from the analysis of case study (Wit & Meyer, 2004:854). This answer will look first macro environment of Ducati using PESTEL framework, then Industrial environment, and after that Competitors and Markets (Johnson et al, 2008) mainly using Porter’s five forces model (Porter, 2004:6).

Macro environment of Ducati
Macro is remote environment of a company comprising economic, social, political, technological and ecological factors (Pearce & Robinson, 2005). One way of looking at remote environment is PESTEL framework (Johnson et al, 2008).
Economic
Not comes explicitly from the case but most of the economies that company was mainly operating in low growth mature markets and open economies.
Political
Not clear from the case but most of countries like USA, UK, Japan, Italy, France, Germany is quite stable and company mainly operated in developed countries.

Social * Women becoming oriented towards biking

* Different tastes and lifestyle , and changing at faster rate

Technological * Fuel efficient and high performance engines * Improvement in Paint, Trim, Chrome, Exhaust pipe shaping (Wit & Meyer, 2004:857). * Electronic Components * CAD & CNC

You May Also Find These Documents Helpful

  • Powerful Essays

    Stilssim External Analysis

    • 1479 Words
    • 6 Pages

    The external environment consists of two parts, the general environment and the competitive environment. The general environment can have dramatic effects on an organizations strategy and the general environment consists of six parts. These parts are demographic, sociocultural, political/legal, technological, economic and global. Only three parts of the general environment will affect StilSim Personal Company. The parts that will affect StilSim are demographic, technology and economic. The competitive environment consists of factors that are relevant to an organizations strategy and the competitive environment consist of Porter’s Five Forces (Dess, McNamara, & Eisner, 2016, p. 52). Porter’s Five Forces are the threat of…

    • 1479 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Amp 425 Module 1 Paper

    • 745 Words
    • 3 Pages

    The external environment faced by the firm and its business units affects the strategy of the firm, the value of the strategy, and thus the firm’s performance. Environmental analysis is considered to be an active input which helps in identifying different threats and opportunities a firm is likely to face which will help in formulating different strategies for competing in the competitive market. The factors to be considered should include: social, economic, technological, completive, and regulatory. (Page 61)…

    • 745 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Chipotle Case

    • 995 Words
    • 4 Pages

    I believe companies fail in the international market because they’re too confident about their success in the local market and because they do not take into account the cultural, political and economic differences and possible rivals that can represent pressure or rejection of the market they want to explore. Also, they do not use the right strategies and approach to reduce risks or get the benefits of such market.…

    • 995 Words
    • 4 Pages
    Good Essays
  • Good Essays

    An organizations external environment consists of three interrelated sets of factors that play a principal role in determining the opportunities, threats, and constraints that the company will face. The first factor is the remote environment that comprises of factors originating beyond any organizations operating situation such as economic and technological factors. The second factor is industry environment. This more directly influences organizations prospects originating in the environment of its industry like competitor rivalry and the bargaining power of buyers and suppliers. Finally, the operating environment comprises factors that influence an organizations immediate competitive situation that could include the factors competitive position, suppliers, customer profiles, creditors, and the labor market. These three sets of factors provide many of the challenges that a particular firm faces in its attempts to attract or acquire needed resources and to profitably market its goods and services (Pearce, 2004).…

    • 949 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mr. Vannutt

    • 597 Words
    • 3 Pages

    The company will meet challenges due to the unstable economic environment of the emerging markets. According to the economy of the emerging markets are still in the developing as well as…

    • 597 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Resources management might be a reason to lose focus on what is and what is not emerging in the small markets. They do not allocate the right resources to focus on the small emerging markets such as time, people, equipment, and money. They put all their efforts in the large market to compete with the larger companies. So as the smaller markets continue to emerge, the large…

    • 924 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    An international company should pay attention to the macro environment which means: PESTEL/ Interaction between companies/competition / Changes of world/ others Externals factors ( such as the last economic crisis or the European crises or the War somewhere, or the fact that the economic world is absolutely instable as well as Policie of countries.)…

    • 516 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Panera Bread Company

    • 1498 Words
    • 6 Pages

    A firm’s external environment consists of all the conditions and forces that affect its strategic options and define its competitive situation. The…

    • 1498 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Aldi does not have a published vision or mission statement. However there is a clear set of values and business philosophy which they adhere to. This philosophy is outlined by the statement which it continuously uses, ‘Top quality at incredibly low prices – guaranteed’. In its small levels of advertising Aldi elaborates on this philosophy by stating its five main principles; huge savings, excellent quality, outstanding value, superb specials and buy with confidence. These five principles were quoted as the ‘Aldi Pledge’. This outlines there key values namely to offer their customers high quality products at low prices. This is achieved by their low cost operations, which is well known and evident throughout its stores.…

    • 1360 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Week 5

    • 1861 Words
    • 12 Pages

    Week 5 Block 2 – Reading 5 Looking Inside For Competitive Advantage Jay Barney 1 Introduction • Focus has been placed on the relationship between the firm’s environmental opportunities and threats, and the firm’s strengths and weaknesses (SWOT analysis ). • Michael Porter’s work on the ‘five forces model’ helps understand the importance of external threats and opportunities. • Barney emphasizes the competitive implications of the firm’s internal strengths and weaknesses. To Barney the SW should be given more attention.…

    • 1861 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Htc Assessment

    • 3595 Words
    • 15 Pages

    The external environment is analysed by looking at the PESTEL factors that affect the company in terms of political and legal aspects such as patents and lawsuits, economic aspects in terms of exchange rates fluctuations, social aspects such as changing tastes, technological aspects such as new operating systems in phone and also the environment in terms of competitor activity. It also analyses the competitors in the market along with their strengths and also the a 5 force analysis that looks at threats to the company in terms of new entrants and substitutes as well as the bargaining power of firms engaging in business transactions.…

    • 3595 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Vietnam

    • 417 Words
    • 2 Pages

    Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it.…

    • 417 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Kellogg

    • 1317 Words
    • 9 Pages

    as India, but the company has also come unstuck on its home turf, most notably with…

    • 1317 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Swot Matrix

    • 1439 Words
    • 6 Pages

    * Existing emerging market * Strong position in market after merger with other companies * Demand Growing…

    • 1439 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements where AirAsia has been founded in. The report then would delve into an internal analysis whereby the Porter’s 5 Forces would reiterate the direct forces that would affect the Airline Industry and subsequently, AirAsia itself. The capabilities and core competencies of the firm would be explained in greater detail towards the latter part of the report before a series of analysis would be done to segregate the more influential ones from the rest. A series of strategies would be then recommended for AirAsia to undertake so as to continue building brand awareness and brand equity throughout the world as a low-cost carrier.…

    • 5759 Words
    • 24 Pages
    Powerful Essays