Ducati's Turnaround Strategy: A Comprehensive Case Study Analysis

This case study examines Ducati's turnaround strategy following its acquisition by the Texas Pacific Group in 1996. The analysis highlights Ducati's implementation of Minoli's turnaround strategy, based on the "Judo Strategy," which emphasizes leveraging core competencies, particularly in technology and R&D, to create brand value and avoid direct competition. The study utilizes PESTEL, Porter's Five Forces, and SWOT analyses to assess Ducati's market position, competitive advantages, and strategic choices. It details Ducati's improvements in manufacturing efficiency, product portfolio expansion, and restructuring of its ordering network. The case study emphasizes Ducati's ability to maintain its position in the sports market, its competitive landscape against rivals like BMW and Honda, and the potential for future growth, including an evaluation of the Harley Davidson market. It also discusses the challenges Ducati might face in expanding into non-sporting segments, the importance of maintaining brand image, and recommendations for future strategic decisions related to fuel sources and production cycles.

In 1996 Ducati was acquired by an American firm Texas Pacific Group. It has been
involved in improving and performing measures to leverage. Its profitability and sales by
increasing product portfolio, restructuring its ordering network, strengthing its sign. Also, push
up manufacturing efficiency, and upgrading its remaining number of motorcycles to sustain with
competitors and the main element of the product is different. In this entire process, Ducati
follows Minoli’s turnaround strategy. The main fundamental logic of this strategy is based on the
"Judo Strategy." In this strategy, the company follows a tactical approach by acquiring
emphasize ability, no power, or size. It avoids head to head fight and other capacity trials that it
is likely to lose. By accepting this strategy, companies learn how to beat their opponent on their
crew who have power, scale, and experience. The turnaround strategy helps Ducati focus on its
core competencies, such as technology and R&D, and create new brand value. The SWOT shows
that Ducati could use its forces to capitalize on its Japanese competitors' comparatively low
customer loyalty. Using the analysis of PESTEL, Porter's five forces, and SWOT, and strategic
analysis, it can seem that no other producer was able to secure a bulk market portion of the
European heavyweight motorcycle run.
Ducati produced shifts in their merchandise improvement methodology that decreased
time to demand from 36 periods to 15. Reduced size of sellers: Ducati wished to develop the
character of their sellers over geographical extension. They diminished their sellers worldwide.
In Italy, the amount was decreased from 165 to 65 in 2000. It appeared in an improvement to
3,250 in year-end recordings per seller from 2,310. Ducati seems to have established strategic
choices to reduce its market shares, the figure of its crankcases and models, engines and, cylinder
heads. Manufacture elements most important for a brand. Ducati’s signs are covered up mostly in
its machines. The Desmodromic delivery system, L-twin motor, and the Ducati engine's different

nature and exhaust are important for a brand. It did not obtain the crankcase rather the
automobile heads because it was a part of their art. To increase employee efficiency, Ducati
developed the rate of motorcycles through a worker from 76 to 87 in 2000.

Yes, Ducati can sustain its position in the sports market. Bikes price around $10000+
compete based on tremendous levels of accomplishment and a different experiential label.
According to the case, the main competitor of Ducati is BMW, Honda, and other Japanese
company. All of these has unique markets regarding niche market which attract particular
demographics externally much overlay. It indicates that Ducati, Honda and, BMW are not
typically suitable substitutes for each other. Ducati has decided to improve partner relations with
the Emilian District seller, giving an equitable level of strength among Ducati and its seller. Its
sales boost shown an adequate demand for its motorcycles in the key global markets, so Ducati
retains some pricing power over its buyers. The Japanese companies dominate the mass-market.
Though mass-market bikes are classed as SuperSport and Hyper-Sport, they don't have the same
capacity as Ducati in niche bikes in the cache of desirability. This approach defends Ducati from
Japanese replacements. No, Honda and the other Japanese manufacturers can not stop its growth
in this segment.
Ducati has improved and maintained their face value succession very well. Ducati
provides heavily to their fixed position. In Outbound Logistics strategy is determined around
brand control for its markets. It is performed through dedicated by overlapping multi-franchise
dealerships into the single-franchise dealership. It indicates that Ducati asks for a higher value
for their customer with a lower amount than a mass-market strategy. It is an approach that is
constant with remaining like niche player; which make sense to the Japanese to have multi-
franchise dealerships as they are alike substitutes of several others.
Sales and marketing represent Ducati's most important growth opportunities as their
brand authority approach improves the Ducati brand name in terms of consciousness.
Concerning motorcycle Ducati also increase their reputation by selling apparel and accessories.

In many cases, the aspirational aspect influence people to buy Ducati brand items instead of they
don't like Ducati bike. These characteristics are also seen in the Harley Davidson market. This
aspect will help people to pull upward in mass-market bikes for the Ducati niche. Another
important marketing of Ducati is dominance in the championship of world superbike, especially
as the firm displays its commodities as sporty. In this Service, the address is missing, but we can
assume that their aid abilities exist to create seller income and assure brand loyalty.

According to the above information, I can say that Ducati should enter the Harley
Davidson's market with a sensible degree of progress. Before joining the market, I want to
suggest that they conduct a survey of Harley Davidson's market based on cost-benefit analysis.
Moreover, if the company thinks to go ahead with Harley Davidson's improvement, Ducati
management should know it. Because of this, they have to face certain pitfalls. Firstly, Ducati
faces the warning of reducing its brand qualities by going into a non-sporting section. Secondly,
another threat of destabilization in case of changing so soon following the turnaround. The
company must create a clear division between Harley Davidson's and the sporting segments
through advertising and maybe distributing by various channels to prevent these. Ducati can
continue its progress in the motorcycle industry by promoting its technological advancement
designs and production processes. Also, Ducati must continually restate the point that the Harley
Davidson's runs for a high-performance Ducati engine. The exploration of other fuel sources has
resulting produced a climate of uncertainty. Focusing on the next basis of energy, Ducati must
maintain its center on production cycles. Moreover, Ducati can maintain its profitability and
niche; they must produce lightweight sports motorbikes to modify their trademark image.