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Ducati Case Solution

Solution Id Length Case Author Case Publisher
2426 1486 Words (7 Pages) Giovanni Gavetti Harvard Business School : 701132
This solution includes: A Word File A Word File

The case focuses on the turnaround in the fortunes of Ducati – which was an Italian manufacturer and maker of motorcycles for high-end sports. The case focuses on how the brand was able to reposition itself with strategic repositioning and revamping, as well as through strong leadership and creative problem-solving. The case highlights growth concerns and issues that companies are faced with, and how they must be tackled in increasingly competitive markets that demand high levels of innovation and design from players. The case also focuses on the strong and bold decisions that leaders must take – grounded in research and development – to help the brands expand and grow. The current case focuses on Minoli’s decision to expand the brand from its focused niche to explore broader consumer segments through current as well as new offerings. The case considers Ducati's focus on attacking Harley Davidson's niche with its interpretation of a cruiser, but also allows for thinking towards other options that the brand could explore to maintain sustainable performance in existing categories.

Following questions are answered in this case study solution

  1. How did Ducati become the second most profitable motorcycle maker in the world, despite its small scale?

  2. What is the economic logic of Minoli's turnaround (i.e., explain the details of the strategy employed)?

  3. As of the end of the case, can Ducati sustain its position in the sport / performance segment?

  4. Support your hypothesis by considering the generic strategies employed by Ducati and at least two of its major competitors, and discuss how the interplay of these strategies will (or will not) allow Ducati to maintain its position.

Case Analysis for Ducati

1. How did Ducati become the second most profitable motorcycle maker in the world, despite its small scale?

Ducati was able to become the second most profitable motorcycle maker in the world despite its small scale because of its strengths and potential. Minoli, the new CEO at Ducati was able to realize its strengths and race it up to its potential the strength fore mostly lay in the product itself – which was excellent in quality and at par with the competition. The product quality fulfilled the product promise as well. The second strength and potential for the brand were rooted in the skilled, talented passionate management team that Minoli recruited for the brand. 

The management team worked within structured chaos for creative problem solving which gave way to increased innovation and creativity within the organization. The absence of structured divisions and functions led to increased communication and novel ideas within the company, which helped it move forward towards success and fruitfulness. Minoli's strong leadership was another factor that supported the company's growth. Minoli was able to support the company as well as the employee's growth simultaneously through ensuring that the culture and the employees resonated strongly with the company's brand and values to make sure that they worked compassionately towards its success. More importantly, Ducati was able to increasingly become successful because of its engineers and designers – who were passionate about the product, as well as competent and competitive towards the Japanese brands. 

The company's increasing investment in research and development regarding the product as well as in the market allowed the company to identify important marketing trends, consumer trends, as well as market insights which helped it develop a competitive advantage in product marketing and brand development. the brand potential itself – which was evident through metrics of brand loyalty led to increased opportunities for successful marketing developments for Ducati – which helped the brand become the second-largest motorcycle maker in the world.

2. What is the economic logic of Minoli's turnaround (i.e., explain the details of the strategy employed)?

Ducati’s success was rooted in its leadership. Minoli was focused on improving the profitability and the market share of the company. This was done through a two-prong strategy. The first part of the strategy focuses dons the continuity of the company's culture and thinking. Through this, Minoli focused on ensuring that the capacity within the company was invested in product development, and design, and in rationalizing the production process. Through this aspect, Minoli ensured that there was no compromise on the product quality, design, or consistency. By focusing on the production process, the company would be able to maximize cost efficiencies and cost-effectiveness. This increased cost performance of the company would also allow it to maximize profitability and improve its revenues.

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