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In 2016, the total revenue in the motorcycle industry accounted for the US $130 million. It means that in a few years, the profit has grown by 6 percent. At the same time, the motorcycle market is highly fragmented and tends to change fast. Thus, as the demand for electronic passenger cars increases, the shift in the demand for electric motorcycles and scooters takes place accordingly.
Ducati Case Analysis
Ducati is an Italian company specialized in manufacturing motorcycles. It is owned by Audi and ran by Lamborghini. Their subsidiary is located in Italy. And all together these branches fall under the leadership of Volkswagen Company. Ducati is the world leader in the production of high-performance motorcycles that have 90-degree V-twin engines and large-capacity four-stroke engines (Giovanni, 2002). Ducati’s valve designs constitute one of the major strengths of the enterprise as they have helped it to dominate the market for a significant time.
Consistently with Porter’s value chain model, Ducati practices various activities in inbound logistics that involve advanced and trustful relationships with the organizational suppliers, product development, and manufacturing operations. Additionally, Ducati’s activities in outbound logistics include marketing and sales of the final product, quality maintenance, and customer communication aimed to make sure that Ducati motorbikes efficiently work after clients purchase them (Giovanni, 2002). Other important value-chain processes considered by Ducati are procurement, human resource management, organizational infrastructure management, and technological advancement, and innovation.
The primary way Ducati generates competitive advantages is through satisfying customers’ preferences. When the enterprise entered the Asian motorcycle market, it decided to offset its previously existed agreement with Japan barring the use of exotic production methods. Ducati also uses the differentiation strategy that implies the creation of distinctive features of motorbikes and innovative valve systems.
The company became able to stand out once it had developed a valuable product and used marketing strategies that allowed targeting a wider customer group. To achieve this, the company constantly conducts an in-depth market analysis. Moreover, it has a creative, highly professional, and talented team of committed employees. All these factors support Ducati’s success and assist it in the production of high-quality motorbikes that have already won multiple competitions since 1990 (Giovanni, 2002).
Giovanni D. (2002). Ducati. Boston, MA: Harvard Business School.