Ducati Harvard Case Essay Example

slight change of market change over the years.

However, most of the spread of the market share has been relatively the same. We can also see on Exhibit 2 that the over market registrations has increase substantially since 1996. Since 1996 to 2001 the number of registrations has increased from 940,000 to 1,500,000 million. This is an increase of a total of 62%. However, Ducati has only show an increase from 5% to 7% and hopes in the long term to captures 10% of the market share. Ducati competitive advantage derives from its involvement in the performance type motorcycles and has a real competitive advantage through them.

It has a good team of engineers that have a passion to produce high performance products. Ducati own a strong brand name and culture that increased the number of Ducati’s loyal customer fans. If the firm invests more on R&D, Racing, and Promotion the firm will be able to continue to provide great customer service and support to loyal customers increasing the brad’s loyalty, and sustain current brand name and strategic strength. They have been able to introduce new technology into the market a lot faster than the competition. There are three elements that allow Ducati to be successful.

First, Ducati keeps the highest outsourcing in the industry, which is 87%, and the company planned to increase to 90%. By doing his, Ducati can decrease the fixed cost and invest more on R&D, product design, and control. Second, Ducati’s unified distribution system keeps brand culture and increase the value of brand name. Third, Ducati own the unique product development and R&D process. Ducati invested a large number of its revenue in

R&D activities. As a consequence of these efforts, the company greatly reduced the time to market for new products launches.

The product development and R&D process help Ducati to sustain the strategic strength. We propose that Ducati looks into markets that are untapped and have minimal competition. Exhibit 10 shows that Ducati are mostly selling to the men’s market. As we can see there is not one company that is taking a focus on women being a potential market. Ducati has seen some historical success by targeting women in the past. The firm claimed that women were attracted by the low seat height and weight of its motorcycles and accounted for 8% of sales on come of the models of its most popular bike, the Monster.

Ducati has the opportunity to use it strong R&D capabilities to develop new products that cater to the women target market. This was Ducati will be able to start moving from a hypercompetitive market and effectively create its own “Blue Ocean” in the market place. Ducati should create a new demand to drive growth instead of just fighting for the same market share in the long run.