What other strategic alternatives are available to Minoli in 2001?
1. What other strategic alternatives are available to Minoli in 2001? Which alternative would you recommend? Why? Remember- You have models that can help you here.
Requirements: complete
9-701-132 REV. MARCH 8, 2002________________________________________________________________________________________________________________Professor Giovanni Gavetti prepared this case solely as the basis for class discussion. Professor Andrea Lipparini of the Cattolica University ofMilan contributed to prepare the industry overview. The author wishes to acknowledge Professors Tarun Khanna and Jan Rivkin for commentson an earlier draft. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffectivemanagement.Copyright © 2001 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may bereproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical,photocopying, recording, or otherwise—without the permission of Harvard Business School.GIOVANNI GAVETTIDucatiBy the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaroundartist” — as Forbesi magazine dubbed him –- had transformed a company on the verge of bankruptcyinto one of the most profitable motorcycle manufacturers in the world; a mechanical concern into aglobal brand; a fast motorcycle into a symbol of Italian design and tradition, extreme performance,and technical excellence. Under Minoli, Ducati had enjoyed explosive growth and profitability.Revenues had quadrupled since 1996; EBITDA had grown from 33.4 million Euros in 1997 to around60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes segment in 1997 to6.7% in 2000 (see Exhibit 1).Despite this success, Minoli was concerned with the future of the company. He knew that Ducaticould not grow indefinitely, and was struggling with what strategy might overtake these bounds.Minoli and the rest of Ducati’s top management team were considering different alternatives. Onealternative was to attack Harley Davidson’s niche with a Ducati interpretation of a cruiser. Was thisbroadening of Ducati’s traditional niche the right move to sustain the profitable growth of thecompany?The Market for Motorcycles in 2001The roots of the motorcycle industry date back to 1868, when Louis Perraux installed a steamengine on a rudimentary bicycle. In 1894, the Hildebrand brothers and Alois Wolfmüller producedthe first motorcycle with an internal-combustion, two-cylinder gasoline engine. The motorcyclequickly became a cultural icon. As T. Krens, the curator of “The Art of the Motorcycle” exhibition atthe Guggenheim Museum in New York, observed:The motorcycle is a perfect metaphor for the twentieth century. Invented at the beginningof the industrial age, its evolution tracks the main currents of modernity. The object and itshistory represent the themes of technology, engineering, innovation, design, mobility, speed,rebellion, desire, freedom, love, sex, and death. Park the latest Ducati, Harley, Honda, or BMWon a street corner in any city or town in the world, and a crowd will gatherii.For the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
701-132Ducati2ProductsApproximately 1.6 million motorcycles were sold around the world in 2001 (see Exhibit 2).Industry experts divided the market for lage-displacement motorcycles into four segments: off-road,cruisers, touring and sport bikes. The off-road segment typically included both motorcycles forpurely off-road use, and motorcycles designed for both on-road and off-road use (dual purposebikes). These motorcycles were characterized by an upright ergonomics, thickly padded seats, softshocks, and superior sturdiness. The largest players within this segment were all of the Japanesemanufacturers, KTM, BMW, and Huskvarna. Cruisers were big motorcycles with an upright ridingposition. Their design emphasized styling over comfort and speed, and was preferred by manyAmerican riders. Harley-Davidson dominated this segment, while Japanese companies such asHonda, Yamaha, Suzuki, and Kawasaki imitated the traditional Harley style. In 1997, BMWintroduced its own interpretation of a cruiser, which enjoyed a stunning commercial success.Touring bikes were larger motorcycles equipped for longer rides and greater comfort. Within thissegment, the three largest players were BMW, Harley-Davidson, and Honda. Sport bikes had lighterframes, a more forward seated position, and emphasized speed, acceleration, and minimal comfort.This niche, which Ducati identified as its relevant market (see Exhibit 3), could be furtherdisaggregated into four sub-segments: hyper-sport (extreme performance, closely derived from theracing world), super-sport (high performance, good handling and low weight), naked (goodperformance and urban riding) and sport touring (speed and handling, married with comfort forlonger rides). Japanese companies dominated this niche, while European firms such as Ducati, BMW,and Triumph also vied for market share. Harley-Davidson entered the sport bike market byacquiring Buell Motorcycles in 1998. This segment was Ducati’s reference market.CustomersA wide variety of individuals, with equally different tastes, bought and rode motorcycles (Exhibit4). “Knee down,” or racing aficionados, sought extreme performance and functionality (e.g.,reliability and technical excellence). ”Easy-riders” lay at the other extreme, and associated themotorcycle with a particular lifestyle. “Weekend riders” and “highway lovers” were more interestedin attributes like functionality and comfort, while a large portion of “undecided bikers” preferred amore balanced and versatile bike. Each customer type differed by age, income, education andgender. For instance, the median age for a Harley-Davidson customer in 2000 was 46 (up from 35 in1987), while most of Ducati’s buyers, whose median age had consistently decreased in the last fewyears, ranged between 25 and 35 years old.Women had become an attractive new customer base for motorcycle manufacturers, and wereparticularly important to some manufacturers like Harley and Ducati. Harley’s proportion of femalepurchasers had increased from 2% in 1987 to 9% in 2000. Ducati claimed that women were attractedby the low seat height and weight of its motorcycles and accounted for 8% of sales of some models ofits most popular bike, the Monster.Specialized magazines, such as Motorcycle Consumer News, Rider, and Cycle World, catered to cyclebuyers and educated them about the technical and stylistic characteristics of new products. Theytested and ranked new motorcycles on several criteria, such as style, engine performance, handling,and overall comfort. Although the majority of the motorcycle companies advertised throughspecialized magazines, only some of them—typically the largest manufacturers—also advertisedthrough the non-specialized press. Motorcycle firms also gained media coverage by participating inracing events. In addition, movies brought cachet to motorcycles. Motorcycles had been featuredprominently in Hollywood movies, most notably the Triumph ridden by Marlon Brando in “TheWild One” and the Harleys ridden by Peter Fonda, Dennis Hopper, and Jack Nicholson in “EasyFor the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
Ducati701-1323Rider.” Department stores like Bloomingdale’s and Harrods sometimes used motorcycles in theirwindow displays.Technology and R&DFrom the first 7 mph wooden Daimler Einspur of 1885 to the 171 mph MV Augusta F4 of 1998,motorcycles’ performance, comfort, reliability, and ease of maintenance had improved vastly. Theseadvances ranged from significant innovations, which offered superior performance anddistinguished companies’ brands, to stylistic features introduced for little cost by combining modifiedcomponents from old models. Kawasaki’s 1984 world’s first, 16-valve, liquid-cooled 4-cylinderengine, Ducati’s Desmodromic valve management system and L-Twin engine, or BMW’s anti-lockbraking system were examples of the former type of innovation. Nevertheless, improvements likepaint, trim, chrome, and exhaust pipe shaping were also necessary to appeal to modern bikers,especially when deference to the company’s styling tradition caused innovation to occurincrementally.Starting in the mid-‘70s, the most important trend had been the progressive introduction ofelectronic components. More recently, advances in materials science led companies to introducecomposites, carbonium, titanium and magnesium to make their bikes lighter and more reliable.Industry experts estimated that in 2001 in-house R&D expenditures ranged between 2% and 5% oftotal revenues.Motorcycles’ technological improvements stemmed from different sources. Manufacturersconcentrated on optimizing engine performance while decreasing motorcycles’ weight, as well asimproving their aerodynamics to lower fuel consumption and toxic emissions. They also pushedsuppliers to improve quality and technology, thus enhancing components like sophisticated “air-assisted” forks, mono-shock rear suspensions, and front and rear disc brakes. Especially since theearly ‘80s, some major companies like Honda, Kawasaki, Yamaha, and Ducati had also used racingcompetitions to develop technical solutions and test materials, and eventually transferred effectivesolutions to their production series. The racing circuit encompassed a number of differentcompetitions, the most important of which were the Grand Prix (with the 125 cc, 250 cc, and 500 cccategories) and the Superbike Championship (with bikes ranging from 750 cc to 1,000 cc). Industryanalysts agreed that a recent trend that can be generalized to the entire industry had been a strongerintegration between R&D and marketing, which caused a larger number of technical improvementsor innovations to derive from market surveys or customer feedback.The pace of technological innovation was aided by the advent of CAD and CNC technologies,which greatly helped manufacturers’ efforts in styling, prototyping and assessing product feasibility.ManufacturingMost motorcycle companies invested heavily to automate production lines and worked with partssuppliers to improve quality and delivery. Only a few firms, such as Triumph, increased their levelof vertical integration. Triumph in 2000 outsourced around 58% of its production. Many outsourceda considerable portion of their inputs. As a consequence, most of them had a highly flexible,streamlined production structure. Outsourcing minimized fixed asset investment, but the quest forquality, reduced costs, and responsiveness to market fluctuations forced final assemblers to createstrong commitment at the level of suppliers. For instance, Harley established a supplier advisorycouncil (SAC), made up of 16 suppliers, to expose supplier executives to the best practices of othersuppliers in the Harley-Davidson network.For the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
701-132Ducati4With the increasing reliance on third-party suppliers, the manufacturing process had essentiallybecome an assembly line where motorcycle components were assembled. Motorcyles werecomposed of four major parts: the engine, whose main parts were the crank case and the cylinderheads, the frame, the fairing and the front forks. Other key components included the wheels, thebraking system, the handlebars, the fuel tank, the headlights and the control instruments. Themajority of the components were first tested, then assembled together as “sub-groups”, and finallymounted on the vehicle, while others (such as the exhaust system) were individually fitted to thebike.Leading motorcycle firms throughout the world also implemented Japanese manufacturingtechniques, including Just-in-Time and Materials as Needed production in order to respond morereadily to market fluctuations, optimize production levels, and improve quality. To make suchprograms work, these firms solicited the commitment and participation of all employees. AtTriumph, for instance, yellow sheets stood out on bulletin boards everywhere, exhorting workers towrite down ideas and suggestions that would increase efficiency and quality. They also changed jobdesign and human resource management practices at the plant level, and emphasized group effort tosolve problems.DistributionAll the major motorcycle companies had some presence in the three major markets: United States,Europe, and Japan. Their typical distribution systems comprised two types of agents: wholesaledistributors and retailers. They used wholesale distributors to build and manage the network of retaildealers in a geographic area. Depending on the strategic importance of this area, they usedindependent, partly, or totally owned wholesale distributors (e.g., subsidiaries). In most cases, theirretail networks were composed of multi-franchise dealers—dealers selling motorcycles of multiplebrands—whose role was to sell the bike and provide adequate technical assistance.The size of the network, and therefore the degree of penetration into the market, were largely afunction of the company’s strategy. Large Japanese mass-producers such as Honda and Yamahatended to maximize “reach” and penetration, while companies such as Harley, BMW, and Ducatiemphasized the quality of the dealer and, where possible, used single-franchise agreements. In 2001the industry was polarized around these two models. Firms using the latter strategy appeared toview their stores as a way to control prices and brand positioning by allowing direct communicationwith customers. The most extreme case of this approach was Harley-Davidson, which had single-franchise agreements with the majority of its dealers (a total of approximately 600 dealers in theUnited States) and had also launched the “Genuine Deal” campaign to build dealership loyalty.CompetitorsOver the last century, the number of motorcycle manufacturers had decreased dramatically. As of2001, there was one major American manufacturer, four Japanese manufacturers, and a handful ofEuropean firms (see Exhibit 5).Harley-DavidsonHarley-Davidson was the major American motorcycle manufacturer, anddominated the U.S. heavyweight (>650cc) motorcycle market. In 2000, it achieved its fifteenthconsecutive year of record revenue and net income, increasing the former by 18.5% to $2.2 billion andthe latter by 30.1% from 1999. In 2000, Harley produced 204,500 motorcycles, a 15.5% increase over1999, and Buell sold 10,200, with 2,400 additional unit shipments. Its Parts and Accessories andGeneral Merchandise businesses made strong gains in 2000, with increases in revenues of 23.5% andFor the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
Ducati701-132514%, respectively, over 1999. Relative to the other major motorcycle producers, Harley had a moremodest global presence. However, despite its strong focus on the American market (in 2000, 78% ofHarleys were sold in the United States), it recently increased its presence in Europe by fine-tuningsome bikes to fit European tastes (e.g., taking off chrome and accessories on popular Europeanmodels such as the Night Train). Since going public in 1986, its stockholders had realized acompound annual growth rate of over 40%.Industry experts considered Harley-Davidson the prototypical example of a “lifestyle” company.Particularly in the United States, Harley was a social and cultural phenomenon, representing thehistory of motorcycling – Harley was founded in 1903 – and symbolizing a set of values – freedomand rebelliousness above all – that were key attributes of the American biker culture. Harley’s brandwas among the strongest in the industry, and the Harley Owners Group (H.O.G.), founded in 1983,was the largest club of motorcycles owners in the world, with 640,000 members. Harley-Davidsoncompeted in the touring and custom market segments, and with one model — the 883 — in the Nakedsub-segment of the sport market. Buell competed in the Sport segment. In 2001 Harley-Davidsonoffered 23 models in four major families with U.S. prices ranging between $5,595 to $20,360. The U.S.average price was $14,350.HondaWith 5.4 million bikes produced (including scooters and small displacement bikes),Honda was the world largest manufacturer of motorcycles. The company shared technology,engineering capabilities, marketing and distribution know-how with its automobile division. TheHonda CB750 Four, first introduced in 1969, started the “superbike” boom and represented a majorshift in the motorcycle industry. Like the other Japanese manufacturers, Honda competed in all ofthe segments of the motorcycle industry, and had a strong reputation for reliability and technicalexcellence. With its capabilities in four-stroke technology, Honda also led the motorcycle industry inproducing motorcycles and scooters utilizing low emission, fuel-efficient four-stroke engine designs.Honda entered the U.S. market in 1959. In 2001 Honda offered 23 models of >500 cc motorcycles.U.S. prices ranged between $4,999 and $18,999. The U.S. average price was $9,300.BMWBayerische Motoren Werke (BMW) was one of Europe’s top automakers. Its automobilesaccounted for nearly 60% of its sales. Its motorcycle division celebrated its seventy-fifth anniversaryin 1998. BMW was the top European competitor in the United States. In 2000, with a network of 160motorcycle retailers, the company posted record sales in the North American market of almost 12,000units, an increase of nearly 20% over year-end sales figures for 1999. BMW bikes pioneered technicalinnovations like advanced suspension systems, fuel injection, and anti-lock brakes, thus giving thefirm a reputation for exceptional quality, safety, reliability, and comfort. BMW entered the U.S.market in 1975. In 2001 BMW production was specialized in touring bikes accounting for a total of 11models. The company also offered a cruiser and a performance bike. U.S. prices ranged from $8,100to $19,600. The U.S. average price was $14,500.TriumphIn 2001 Triumph produced approximately 30,000 motorcycles. The company startedproducing motorcycles in 1902. It was one of the world’s most notable brands in the 1950’s, thanks inpart to its appearance in Marlon Brando’s movie “The Wild One.” Although forced to liquidate in1983 due to financial problems, Triumph was turned around in 1991. By applying Japaneseproduction techniques, Triumph had recently gained a reputation for making virtually unbreakablebikes. Triumph’s customers were largely high-income middle-aged professionals. Its most popularmodel was a naked, the Thunderbird, which was similar to what it marketed in the 1960s. In 2001 itcompeted in the touring, sports and off-road/dual purpose segments for a total of 9 models with U.S.prices ranging between $7,000 and $12,000. The U.S. average price was $9,500.Other Japanese manufacturersIn 2001 the other three Japanese competitors held a marketshare of 57% of Ducati relevant market. Yamaha, Suzuki, and Kawasaki entered the U.S. motorcycleFor the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
701-132Ducati6market in the 1970s by selling small motorcycles. They then moved into the heavyweight segment. InEurope, Suzuki had a larger market share than Honda; in Asia, Kawasaki trailed only Harley andHonda. These companies competed on technological innovation and price, but were not as strong inthe cruiser market, where Harley had a stronger appeal.Best known for its motorcycles, which accounted for almost half of its sales, Yamaha Motor alsomade water vehicles, all-terrain vehicles, leisure and fishing boats, snowmobiles, and golf carts. Itsold about 85% of its motorcycles outside Japan. In 2001 the average U.S. price of Yamahamotorcycles was $10,200. Suzuki was Japan’s #1 minicar producer. Its non-vehicle productsincluded generators, outboard marine engines, and prefabricated housing. It sold about half of itscars and nearly 75% of its motorcycles outside Japan, and partnered with General Motors, whichowned 10% of Suzuki, and planned to double its stake. Suzuki sold motorcycles in the United Statessince 1963 and had a reputation for reliability. It offered bikes for road riding, motorcross, andeverything in between. In 2001 the average U.S. price for Suzuki motorcycles was $7,600. KawasakiHeavy Industries had many divisions, from industrial equipment, transportation, aerospace, andconsumer products. Its consumer products (23% of sales) ranged from motorcycles to Jet Skiwatercraft and all-terrain vehicles. After introducing 11 new models in 2000, it introduced four newmodels in 2001 and made significant changes to key models in its Vulcan™ cruiser line—which wasnamed “Cruiser of the Year” by Motorcycle Tour & Cruiser magazine. In 2001 the U.S. average pricefor Kawasakis was $8,450.Honda and Yamaha recently agreed to jointly transport their motorcycles and spare parts with thehope to save 30% on their delivery costs. Kawasaki and Suzuki planned to enter a similar allianceshortly.The Turnaround ProgramDucati was founded on July 4, 1926, when Antonio Cavalieri Ducati and his three sons establishedone of the first Italian operations of radios and electrical components. In 1935 Ducati startedproduction at a new factory in Borgo Panigale, just outside Bologna, at the heart of what later becamethe most extensive Italian mechanical district. Not until the post-war period did Ducati’s firstmotorcycle appear. The bike, “il Cucciolo,” soon became a blockbuster. The 1950s witnessed theintroduction of a series of increasingly sophisticated and powerful bikes, and particularly theappearance of Ducati’s technical signature: the Desmodromic valve distribution system. Thisinnovation, developed by the celebrated Ducati engineer Fabio Taglioni, was a sophisticatedmechanical system allowing the engine to achieve more revolutions per minute and greater “usable”power. The Desmo system could still be found in 2001 on every motorcycle produced, representingthe soul of all Ducatis: the deep intoxicating noise made by the desmo engine was music to the ears ofpurists.Thanks to their technical superiority, Ducati motorcycles rapidly achieved success in theinternational racing circuit. This success fueled growth throughout the sixties and the seventies, andthe development of a strong reputation in the performance segment of the motorcycle industry. In1972, a Ducati 750 Super Sport prototype won a dramatic victory in the Imola 200cc race. Thismotorcycle, which was configured with an L-shape desmo engine (two cylinders mounted at a 90-degree angle) and a Formula Uno-derived tubular trestle frame, inspired the production of a new lineof larger displacement motorcycles that represented the stylistic and technical foundation of modernDucatis.For the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
Ducati701-1327Despite the innovativeness and technical excellence of its product lines, Ducati’s fortunes declinedsharply in the early 1980’s, primarily due to the decision of its major shareholder at that time (IRI, aState holding company) to refocus the company on products other than motorcycles. In 1985 IRIdecided to sell its motorcycle assets, and Cagiva, an Italian manufacturing conglomerate andproducer of small displacement motorcycles, acquired Ducati. Under Cagiva, Ducati suddenlyrecovered its reputation for on and off-track excellence. An impressive series of victories in theWorld Superbike Championship where, for the first time, a Ducati two-cylinder engine defeated afour-cylinder engine produced by Japanese competitors, was paralleled by the introduction of a newseries of stunningly beautiful street performance bikes. However, towards the mid nineties, liquidityproblems at the larger Cagiva group deprived Ducati of the necessary working capital funding,which, in turn, delayed its payment terms to some key suppliers, resulting in significant productiondelays.Ducati was one step from going bankrupt when, in September 1996, a majority stake in thecompany was acquired by the Texas Pacific Group, an American private equity firm. Abel Halpern,HBS ’93 and TPG partner was the driving force behind the deal. He had a passion for high-end,“nichey” businesses, and was driven by the firm belief that Ducati had enormous potential that waslargely unexploited due to poor management. For this reason, he needed a first-class, highlycommitted management team, and TPG appointed Halpern’s friend and former colleague at Bain &Co., Federico Minoli, as CEO of Ducati.PrologueFederico Minoli began his career at Procter & Gamble, Italy, in 1974. It was a few years later atMcKinsey that he became involved with, and fascinated by, problems of strategic change. He thenmoved to one of McKinsey’s clients, Benetton, as CEO of the U.S. subsidiary, which he turned aroundin less than four years. Finally, before his experience in Ducati, he joined Bain & Co. in Boston, wherehe specialized in “turnaround management”:I was a University student between ’68 and ’72. It was a “hot” period in Italy. I rememberspending full nights discussing the meaning of revolution, of Marxism . . . we were all littlerevolutionaries, we wanted to change the world, everything. Well, while these ideologies arewell behind me, I can certainly say that this disposition towards change, the idea thateverything should be continuously re-discussed is still the way I look at things. Any decisionto change, even if well planned and analyzed, always leads to a new territory that needs to bediscovered and charted. That’s where I draw my professional satisfaction. I like the process ofchange, not success per se. I accepted [the chance] to run Ducati because I saw a company that,beyond its liquidity crisis, needed to be radically changed in order to fully exploit its enormouspotential.iiiMinoli moved to Ducati’s Bologna headquarters in summer 1996 with two goals in mind: double-digit growth, and equaling Harley-Davidson’s profit level, which was by far the highest in theindustry, with an EBITDA margin of about 20%. In a few weeks, Minoli appointed a completely newtop management team. He looked not only for “talent,” but also for talented managers who couldbecome passionate about Ducati. None of the new hires had previous experience with the motorcycleindustry. At the very beginning of Minoli’s tenure, Ducati was struggling to develop a clear strategicdirection, functional divisions were largely absent, and the top management team operated in whatMinoli terms “a structured chaos.” He believed the lack of rigid internal boundaries, especially ifcoupled with clear leadership and managers who identified strongly with Ducati, would stimulatecreative decision-making.For the exclusive use of J. Keller, 2023.This document is authorized for use only by Jack Keller in Strategic Management – Fall 2023 taught by Derek Kruse, Creighton University from Jul 2023 to Dec 2023.
701-132Ducati8When Minoli arrived at Ducati, he found it had three things. First, Ducati had a good product.Although they were regarded as less efficient and reliable than Japanese bikes were, Ducatis wereunique, beautiful performance motorcycles. Second, Ducati had a group of top-notch engineers—both in the R&D and in the racing divisions—whose main goal was to continue defeating theJapanese in the Superbike Championship (see Exhibit 6). These people were the real soul of Ducati.According to Minoli, these were the people who ultimately ran the company:The company was driven by its excellent engineers and designers. These people were allpurists, “knee down” riders, fanatics of the motorcycle: speed, performance and innovationwere the attributes defining their world. They had an extreme notion of what a Ducati andtherefore a Ducati rider, a “Duke,” should be. When I came here for the first time, I left withthe clear impression that it was almost by chance and not by strategic choice that Ducati had aproduct that the public loved. The market and market research were unknown to them . . . thisplace had an incredibly strong engineering culture with a real passion for races . . . and don’tforget that we are in the middle of Emilia, the region of Ferrari, Lamborghini, Maserati andmany others, a place where you can almost breathe the passion for races and mechanics.ivThird, Minoli found a brand with strong potential. In major European markets, Ducati’s brandloyalty ranked among the highest in the motorcycle industry, with about 55% of its small customerbase expressing repeat purchase intentions.Strategizing at DucatiWith these beliefs about Ducati’s strengths in mind, the challenge for Minoli and his team was todefine a turnaround program that would support the profitability goals he had set. With aproduction of 12,117 motorcycles in 1996, Ducati had a worldwide market share of 4% in the sportsub-segment of the >500cc Road Market. The objective was to bring the market share to 10%,although Ducati personnel were polarized around two alternatives. One involved continuity withthe company’s culture and dominant thinking: invest heavily in the product and rationalizeproduction pr
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
