Ducati Exec Summary

Topics: Marketing, Investment, Motorcycle Pages: 1 (333 words) Published: April 22, 2012
Executive Summary

This study is to provide analysis of Ducati’s options to sustain its growth and continue to grow its margins. We have identified a number of key opportunities that would allow Ducati to meet both these goals. First through the use of SWOT analysis we identified where the company was vulnerable and where it had an opportunity to grow. The main items threatening Ducati’s sustainability is its economy of scale compared to its competitors, and small age gap of its riders. Ducati’s product line does not seem to resonate with the over 30 crowd. Ducati’s strengths are its efficient production line and level of technical superiority of the R&D department. By identifying the strengths, the threats, and the weaknesses; we were able to identify three opportunities that provided revenue and margin growth. We then applied 5 Force analyses to see which one presented the best opportunity. One, Ducati could enter into the cruiser market, but the high cost of entry, Harley Davidson’s dominance in the market, and possible retaliatory implications present high barriers of entry. The second option is build a lower cost motorcycle that would compete with Japanese on price. This option would allow Ducati to gain in market share, but in doing so would do more harm to the image as a high quality and performance machine. Third option would be to grow the brand through use of e-commerce and targeting women bikers which currently only represent 8 to 9 percent of Ducati’s current sales. This option posses the smallest amount of capital investment and could be implemented right away. Based on the analysis we have come to the following conclusion, Ducati should continue to develop its brand through growing its e-commerce business, advertising more with an emphasis on women, and growing its European brand into a more globe lifestyle. With a target of 10% growth over the next 5 years in parts, apparel and accessories, this would take Ducati from 6 –to...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Horniman Exec Summary Example Essay
  • Tasmanian Wine Exec Summary Essay
  • Exec Summary
  • Design Matrix Exec Summary Essay
  • Res 342
  • Ducati Essay
  • Ducati Essay
  • Ducati Essay

Become a StudyMode Member

Sign Up - It's Free