Cameron Sigler MGT 3830 – Case 2 September 24, 2013

Ducati Motorcycles Analysis

In order to understand the potential decisions and trade offs available for Ducati to organize its strategic plan, a thorough analysis of the motorcycle industry was essential. In 1996, Ducati Motorcycles operated in a highly unattractive industry. The forces of competition were strong. The high bargaining buyer of buyers, the moderate bargaining power of suppliers, threat of substitutes, and the threat of new entrants fueled this situation. Ducati competed with other notable firms that manufactured similar bikes that were comparable in price and quality. These factors lowered the switching costs for buyers and created an intense rivalry among competitors. While all of the manufacturers relied on a large amount of suppliers for their production needs, this emphasized a great responsibility for the manufacturing firms to consistently manage their suppliers. Ducati motorcycles have historically differentiated themselves from their competitors due to a respected excellence racing and in its niche market, sport bikes. While only manufacturing a small amount of motorcycle, Ducati bikes were easily recognized by their sleek, unique design, distinct sound, and advanced technology. While any company could choose to produce a motorcycle, it was a difficult market to enter, due to heavy weight competitors that had an established brand loyalty with their customers. Frederico Minoli discovered a way for Ducati to reinvent its entire business in order to cope with the forces of competition in its market. Similar to Apple during their turn around period, Ducati repositioned its focus to transform its company from the inside out. Beginning with a new top management team, Minoli started at the heart of the organization to foster a new Ducati that was built on passion and creativity. In