Using the platform approach, Ducati divided the motorcycle into moderately small numbers of components which were in turn made of sub-components. The platform approach minimizes detailed, multi-step assembly processes; therefore, resulted in less man-power needed to assemble the products. At the same time, outsourcing component manufacturing to suppliers resulted in a concentration of expertise and higher levels of quality. Ducati also concentrated on minimize component variety through standardization and improving employee efficiency. Some of the fundamental economic logic of Minoli’s turnaround include: identifying the capabilities, resources, and core competencies for the turnaround program, modernizing the production processes, improve motorcycle designs, and expanding the customer base.
2 Yes, Ducati can sustain its position in the sport segment of motorcycle if management keep the current trend. Ducati has a good position in the sport-bike segment with valve control system, which provides the unique sound. They also have a good reputation due to the performance in the international racing circuits. Keeping good performance will help to sustain and increase the demand for the company’s products.
Minoli is a firm believer of never being satisfied; there is also somewhere where the company can improve even when revenues are at their highest. He stated in the case that he is playing with the idea to develop a cruiser and try to compete with Harley in its area of expertise. This would be a way of concentric diversification but expanding its product line in the industry it is already in. Instead of the trying to develop their own version of a cruiser in which they have no experience, they could trying to grow horizontally and acquire a company that already has knowledge of how to build a cruiser and what those types of riders want from their bikes. Just like what Harley did when acquiring Buell, they were able to enter a segment of the market, that...
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