Ducati Paper

Topics: Motorcycle, Ducati, Sport bike Pages: 3 (1048 words) Published: November 14, 2012
Margaret DeWitt
Ducati Turnaround

The turnaround success of Ducati was the direct result of Federico Minoli’s implementation of a differentiation strategy. As a company that was heading towards bankruptcy, Ducati was saved and revamped by Minoli’s specific vision for the company that were precisely presented in an extremely realistic manner. These goals for the company included double-digit growth for Ducati and equaling Harley-Davidson’s profit level. After reading the success of this turnaround, one point that I found very interesting and contributed to the company’s success is Minoli’s staffing method for Ducati. Not only did he strive to acquire intelligent and qualified workers, but also he emphasized passion and creativity in the workplace. The article refers to this “structured chaos” as the primary source of creativity. Another unique staffing method using by Minoli was that none of the new staff had previous experience in the motorcycle industry. According to Minoli, even though they had no previous experience they were still capable of becoming passionate about this company and its products and would therefore be a successful management team. It is apparent Minoli views everyone involved in the production of Ducati’s products as a key success factor in its turnaround. In choosing the right strategy for Ducati, Minoli debated between standardizing the engine, which would result in better efficiency, or to remain true to what the motorcycle represented. He wanted the brand name to appeal not only to extreme motorcycle riders but also so other segments of buyers. By implementing a differentiation strategy, Minoli was able to position Ducati in a way that showcased its uniqueness as a motorcycle. It was also a way to separate it from other motorcycle companies such as Harley-Davidson and Honda. The specific features of their product are so unique to the brand name that it would be difficult and expensive for competitors to try to mimic. The company...
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