...Unit Reading Leenen, S. & Jelassi, T. 2005, 'Ducati (Italy) vs. Harley-Davidson (USA)', in Strategies for E-Business, ed.T. Jelassi & A. Enders, Pearson Education Limited, Harlow, pp. 366-398. Ievisia-1111-1311 _. .. . .. _...__...__._ . . . ..___. _. . . ll I 1..-_. .. ..._._. . ._._ _ . __.. _ ._..._ __ i"“ Ducati (Italy) vs. Harley-Davidson (USA) Innovating business processes and managing value networks In 2001, as Ducati celebrated its 75th anniversary, Group (TPG) and Deutsche Morgan Grenfell Capital some executives wondered whether the recent corporate restructuring had repositioned the company (Italy). A new management team initiated a turnaround programme aiming at increased production efficiency, net sales and profit. ‘Since 1996, we were really working against a backdrop that wasn’t so far successfully. As part of this, the Italian motorcycle manufacturer had adopted a new focus on R&D, marketing and sales, moving away from its initial manufacturing strength. In addition, the company removed from bankruptcy’, said Carlo di Biagio, Chief Executive Officer of DMH. ‘Now our situation is different. Sooner or later, we think investors will see that.’ By 2001, the company had restructured its value chain activities, outsourcing 90% of its production and, in order to decrease costs, introducing a platform strat- had embraced the Internet, deciding in Ianuary 2000 to sell its new motorcycle, apparel and accessories exclusively online...
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...Case Study | Ducati: | | | | | Content 1. Summary 1 2. The Problem 1 3. Cast of Characters 2 3.1. People 2 3.2. Institutions 2 4. Chronology 3 5. Issues 5 5.1. SWOT analysis 5 5.2. Porter’s generic strategies analysis 8 6. Options 9 6.1. Focus on their core business 9 6.1.1. Advantages 9 6.1.2. Disadvantages 10 6.2. Expand to the leisure market 10 6.2.1. Advantages 10 6.2.2. Disadvantages 10 7. Recommendation 11 7.1. Focusing on their core business 11 7.2. Reasoning and Rationale 11 8. Plan of Actions 12 8.1. Invest in technology 12 8.2. Focus on their design 12 8.3. Make the sport a culture 12 8.4. Invest in the brand 12 8.5. Branding towards children 13 Summary Ducati is an Italian racing-motorcycle manufacturer whose products are characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. In its 80 years of history, the company has won eleven of the last thirteen World Superbike Championship titles and many more individual victories. Ducati produces motorcycles in four market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster and Sport Touring. The motorcycles are sold in more than 40 countries worldwide, with a primary focus in the Western European and North American markets. Despite its success in racing and products, the company went almost bankrupt in 1996 when it was taken...
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...SUFFOLK UNIVERSITY SCHOOL OF MANAGEMENT Graduate Programs in Finance Fall Quarter, 2011 FIN MF 820 Financial Policy Thursdays: 7:15-9:55 Instructor: Dr. Shahriar Khaksari, CFA Office: S432 Phone: 573-8366 Email: skhaksari@suffolk.edu The New Corporate Finance: Where Theory Meets Practice Mcgraw-Hill Series in Advanced Topics in Finance and Accounting Course Objective This course is designed to allow students to develop a deep understanding of financial theories, techniques, and models applied to the study of corporate financial decisions. It covers aspects of corporate strategy, industry structure, and the functioning of capital markets. The course consists of three segments. In the first segment, students do a comprehensive analysis of the assigned cases and prepare a written report that includes identification of major issues, alternative approaches, analysis of each alternative, and a concluding part in which students take a clear cut position in how they would approach the problem as a decision maker and defending their position. The Case study is done by groups (three to four students per group). The text analysis should not exceed five pages. It should be typed and double-spaced. A lengthy summary of the case is unnecessary and redundant. The space constraint should discipline students to be concise at differentiating major issues from the less important ones. All the tables, graphs and related...
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...HBS Europe Research Center (ERC) Update July - December 2013 In this update: - New publications on EADS, Investindustrial, D'O, Siemens, Hg Capital, and Visma. - New completed research project on the transformation of European energy markets. - Ongoing research in General Management, Organizational Behavior, Technology and Operations Management, and Entrepreneurial Management. - ERC case interviews and field research in Austria, Belgium, Denmark, France, Spain, Sweden, and Switzerland, Selected events: Glocoll Program on campus; MBA events in Munich, Frankfurt, Paris and London; the European Area Conference; CSR Conference in Brussels; EAB meeting in Milan; L'Etudiant Conference in Paris; ELC Meeting in Geneva. It is with mixed feelings that we say farewell to our Research Associate, Mr. Karol Misztal. Karol first joined the ERC in 2010, and quickly became a valuable member of our team. We are thankful for his contributions to our organization and, undeniably, he will be deeply missed. Please join us in wishing Karol the very best of luck and success in all his future endeavors. We were also very fortunate to welcome two outstanding Harvard College students to the ERC team for a two-month internship: Ms. Nina Chen and Mr. Roland Yang. We would like to thank them for their great work and we wish them all the best for their future careers! br> And to all of you, Happy Holidays and best wishes for 2014! Newly Released Cases Case study "FX Risk Hedging at...
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...luxury segment of the motorcycle market Luxury good market: • US 25% • Europe 38% • Japan 12% • China 3% • India ? • Russia 5% Harley trades on its image and nostalgia to sell its traditional bikes Harley is seen as a symbol of the freedom of the open road and has a loyal and passionate following Harley lags behind its competitors but is intentional. Harley relies on traditional styling in its status and image, not technology. Heavyweight bikes constituted 55% of the US motorcycle market in 2008 Harley has led the mc industry in domestic unit sales of heavy weight bikes for 20 straight years. In 2008, Harley manufactured 46% of the heavyweight mcs sold in the US European market is comprised of performance bikes such as the Ducati at 70%. So the V-Rod competes in this market segment. COMPETITORS Price is the competitive issue, and joint ventures between domestic companies and international motorcycle manufacturers like Honda and Kawasaki product affordable motorcycles of good quality. Australia and New Zealand are strong markets for Harley Competition in heavy weight is based on price, quality, reliability, styling, product features, customer preference, and warranties The company emphasizes quality, reliability,...
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...Questions: Ducati 1) How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental economic logic of Minoli’s turnaround. The operational effectiveness was the key factor to gain the second most profitable motorcyclae maker. Platform based approach to production caused more effecincy with economic of scale Standardizing of products using two crank cases and three cylinder heads creates efficiency gains in manufacturing. Play the strategy of outsourcing about 87% of production activities related to spare parts while maintaining core competencies activates like R&D, design, quality control, and key trade market component machining in house resulted in flexibility in new part productions Establishing a quality control system focused on improving reliability and overall quality. The fundamental economic logic of Minoli’s turnaround was as follow Identified the capabilities and core competencies to start the turnaround. Refresh and recapture Ducati brand and expand the customer base which used to be limited to the expert rider. Improve the production process Improve motorcycle design. 2) Can Ducati sustain its position in the sport segment? Can Honda and the other Japanese manufacturers stop its growth in this segment? Yes, Ducati can sustain its position in the sport segment of motorcycle if the management keep the current trend for theses reasons Ducati has a good...
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...Kevin Cota Business 109 1/28/16 Case 3: Ducati 1. Product - > Desmodromic valve distribution system, Ducati 750 Super Sport, L-shape desmo engine, Formula Uno-derived tubular trestle frame. Operation - > Purchased by Cagiva, due to financial problems was sold to the Texas Pacific Group. Strategy - > Bring market share to 10%, invest heavily in the products and rationalize production processes, develop a global brand that would appeal a broader spectrum of customers. Distribution - > New strategy to take control of distribution and marketing in strategic markets by establishing totally owned sales and marketing subsidiaries, re-organization of the network of dealers, creation of “Ducati Stores” 2. Ducati can sustain its position in the sport segment, with its new business strategy it an remain an important part of the market. Other companies like Honda cannot stop its growth in the segment, however they can compete with them by imitating their strategies and improving their own companies. As long as Ducati maintains their recent success, they will be an important part of the market. 3. Minoli considered entering the cruiser market which was dominated by Harley Davison. This segment of the industry was highly profitable. In order to enter, Ducati would have to invest up to 43 million Euros. 4. Like Harley did with their brand, I would recommend Ducati to establish their brand as a lifestyle rather than a simple motorcycle bike. A lifestyle...
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...Creative Brief Client: Ducati Motor Brand: Multistrada 1200 Date: April 2010 Description: 1st Semester Campaign – New Brand Introduction What is The Brand? The Multistrada 1200 is a motorcycle manufactured by Ducati since 2010. The engine is a retuned version of the Testastretta from the 1198 superbike, now called the Testastretta 11° for its 11° valve overlap (reduced from 41°). All models include throttle by wire, selectable engine mapping (full power with sensitive or relaxed throttle response, and reduced power with relaxed throttle response) and traction control adjustable through eight levels. S models also include ABS (optional on standard model) and electronically adjustable suspension. The S Sport model features carbon fiber air intakes, cam belt covers and rear hugger, while the S Touring model comes with heated grips, hard luggage and a center stand. Product Manufacturer Background Based in Bologna, Italy, Ducati was a radio manufacturer before entering motorcycle production after the end of the Second World War. Known at first for its sporty line of lightweight single-cylinder bikes, Ducati hit its stride in the early 1970s with its V-Twin sportbikes that were the pinnacle in their era. Following some financial instability in the 1990s, Ducati currently produces several desirable racing-inspired motorcycles. All current Ducatis are built with signature steel trellis frames and 90-degree V-Twin motors. It also has a rich racing history with particular...
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...Ducati Corse, a subsidiary of Ducati Motor Holding S.p.A, was responsible for managing the activities of the Ducati racing teams. Historically, Ducati had been the dominant force in the Superbike Circuit winning 13 titles since 1990. Until recently, Ducati was only part of the World Superbike series. But a recent rule by FIM (in 2001) permitting the use of 4-stroke engine in bikes as against 2-stroke engines, which was a mandate earlier (for MotoGP) prompted Ducati to get into MotoGP. Despite the fact that high costs were involved and Ducati faced the risk of being a late entrant into MotoGP, the Ducati team was highly enthusiastic about this new development. Ducati had a fairly successful first season (2003) but the 2004 campaign turned out to be disappointing. Determined to come back strongly, Filippo Preziosi, (Technical Director) and the team decided to move from an integrated design approach to a modular design for its next generation bike (GP5). Why did Ducati Corse succeed in its first year of MotoGP competition? Even though Ducati entered the MotoGP arena in 2003 as underdogs with very limited experience, they literally made their presence felt. They went on to achieve 14 front-row starts, 9 podium finishes, 3 pole positions, and even tasted one victory. One of the key reasons that I believe led to their success was the inner zeal, commitment and passion that the Ducati engineers displayed in designing the first GP bike. Few of the other important reasons for their...
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...Ducati was a company that was on the verge of going bankrupt in 1996 but took a turn for the better when it was acquired by Texas Pacific Group, driven by Abel Halpern, who then appointed his close friend, Federico Minoli, as CEO of Ducati. When Federico took over, he made it clear that the fundamental economic logic was “the idea that everything should be continuously re-discussed is still the way I look at things.” Ducati had the qualities of a profitable company but was lacking the right management. Minoli made it clear that he had two goals in mind: double-digit growth, and equaling Harley-Davidson’s profit level. If these goals were accomplished, Minoli believe he could “turnaround” the near demise of Ducati and look for continued growth and profitability. Minoli’s “Turnaround Program” would be seen as a successful plan in reinventing Ducati as a global brand and broadening its spectrum of customers. By looking at exhibits 1 and 3 in the casebook, we can see how Ducati’s market share (in its relevant market) nearly doubled from 1996 to 2001. Despite its small scale, Ducati was able to effectively create a strong global brand. We also see a steady growth of sales in every product line Ducati offers in exhibit 8. This was the road Ducati took to become the second most profitable motorcycle maker in the world. But in 2001, Minoli was at the end of the turnaround and needed to make a decision on how to keep expanding Ducati’s growth and profitability. To keep...
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...of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation or any offer to purchase or subscribe for any Ducati Securities, nor shall they form the basis of, or be relied on in connection with any contract or commitment to purchase Ducati Securities. Any recipient of this document considering a purchase of Ducati Securities in a rights issue following publication of an Italian prospectus in connection therewith is hereby reminded that any such purchase should be made solely on the basis of the information contained in such Italian prospectus. The information in these materials includes forward-looking statements, concerning in particular economic and financial trends, which have been made by the management and are based on current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions. In light of this, the events described in the forward-looking statements may not occur. These materials are not being issued in the United States of America and should not be distributed to United States persons or publications with a general circulation in the United States. These materials are not an offer to sell or issue Ducati Securities in the United States. No public offering of Ducati Securities will be made in the United States. Ducati Securities have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be sold or issued...
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...Hi-Res Case Study: Ducati Motor Holding HIGH ROAD TO WORK ORGANISATION CASE STUDY Ducati Motor Holding (Bologna, ITALY) Alessandra Pistani & Matteo Boemi Nomisma December 2001 Abstract Ducati is a world leader in the production of high-powered sport motorcycles. Since 1996, following acquisition by the Texas Pacific Group, an American investment fund, the company has undergone an intense relaunch process involving several aspects of its organisation. This case aims to describe the change that has occurred in the reorganisation of production and the benefits that the new system has brought to the company. Hi-Res Project 2001. Page 1 Hi-Res Case Study: Ducati Motor Holding Hi-Res Case Study: Ducati Motor holding Sector Nace Code , high powered sport motorcycles. Key Words Interaction with suppliers; Outsourcing; leaning organisation. Table of Contents Abstract Keywords Sector 1. Background Information 2 Drivers for change 3 Characteristics and Process of change 4 Obstacles to change 5 Risk analysis 6 Benefits of change Conclusions 3 3 4 5 5 6 2 © Nomisma 2001 Hi-Res Project 2001. Page 2 Hi-Res Case Study: Ducati Motor Holding 1. Background Information The history of Ducati began in 1926 when the Ducati family and other investors in Bologna founded the ‘Società Scientifica Radio Brevetti Ducati’. The company initially produced industrial components for the growing field of radio transmissions, based on Adriano Ducati’s patents....
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...Motorbike Motorbike Ducati Multistrada 1200 The only bike you ever need to own Words by Govind It was Marcel Bode, the GM at Ducati Dubai, who introduced us to the Multistrada (MTS). We could have forever remained ignorant of this gem of a machine if not for his insistence to try it out. This might be the only bike you ever need to own. To make a comparison, the MTS is like a 12400mm f/2.8 SLR lens. And that’s a lens that doesn’t exist. The MTS is a safe bet if you are looking to get back on two wheels. It is multitalented, adequately powerful, seats two very comfortably and rewards the novice as well as experienced riders well with its ability to please beyond boundaries. The name itself means the bike is meant to be ridden over multiple types of roads. In fact, Ducati has engineered the MTS to be 4 bikes in 1. And boy, disappoint it does not! A gadget geek will be head-overheels with the MTS. The key fob can be forgotten in your jeans pocket. Keyless really is the way to go. Slide a switch downwards near the throttle to release the handle lock, flick it back up to reveal the starter button, and the very clear and informative main and sub LCD display lights up colorfully with a system check. The top end model we tried had all juicy acronyms standard with it. The most interesting ones being the Ducati Electronic Suspension (DES) developed with Ohlins, Bosch Brembo ABS and Ducati Traction Control (DTC). These three are interlinked to allow the rider to customize the...
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...Harley-Davidson/Ducati Case Study November 20, 2013 Question 1 Ducati: Ducati is an Italian motorcycle manufacturing company that is renowned for its high performance and stylish motorcycles. Ducati is committed to racing competitions, state of the art design, style, and most importantly, an immense passion for bikes. Ducati has created a strong bond with its customers, beginning on the racetracks and spreading worldwide. Ducati builds high performance bikes for bike enthusiasts, known as “Ducatisti”. Ducastisti are individuals who value performance as the main attribute in a motorcycle. Since Ducati delivers this, it creates brand loyalty. Since the early 90s, Ducati has created a distinctive community image with local and national Ducati enthusiast clubs by placing Ducati as a symbol of refined skills and craftsmanship that every motorcycle evokes and represents. In the World Superbike Championship, Ducati has won 15 out of the last 18 Riders’ titles and 16 Manufacturers’ titles. In conclusion, Ducati customers are confident that they are purchasing high performance motorcycles. Harley Haley Davidson is exhibited as an American icon. Consumers view and associate Harley Davidson with riders, wear leather, have tattoos and with police officers, military dispatch riders and motorcycle gangs. Harley’s image is also viewed as something that is catered for and used by Caucasian American males in their 40-50 (Nolan pg.2-3).Harley Davidson’s riders feel a lifestyle connection...
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...For the exclusive use of Z. Xu, 2016. 9-701-132 REV. MARCH 8, 2002 GIOVANNI GAVETTI Ducati By the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaround i artist” -- as Forbes magazine dubbed him –- had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world; a mechanical concern into a global 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 around 60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes segment in 1997 to 6.7% in 2000 (see Exhibit 1). Despite this success, Minoli was concerned with the future of the company. He knew that Ducati could 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. One alternative was to attack Harley Davidson’s niche with a Ducati interpretation of a cruiser. Was this broadening of Ducati’s traditional niche the right move to sustain the profitable growth of the company? The Market for Motorcycles in 2001 The roots of the motorcycle industry date back to 1868, when Louis Perraux installed a steam engine on a rudimentary bicycle. In 1894...
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