Motorcycles industry: Ducati at the conquest of the world

Résumé du document

The motorcycle market is a worldwide market within four mains segments: off-road, cruisers, touring and sport bikes. Ducati, a historically relatively small actor with 6.7% of the market, is now facing international competition and would like to gain market shares. This study is about how Ducati can choose the right strategy and do the right investment in order to develop their market share and surpass the profitability of Harley-Davidson. In the first part, we are going to present the analysis of the market. We are going to show how high the rivalry in the market is. In a second part, we will focus on strategic alternatives for the company and then we will present our recommendation for Ducati. The motorcycle market is first of all an industry of production. Motorcycles produced are sold to customers after being produced in outsourcing units for Ducati. They make money on the difference between cost of fabrication and distribution and the selling price. This industry is turning into two segments: dream industry associated with a lifestyle, and useful cheap motorscycles.

Extraits

[...] Motorcycles industry: Ducati at the conquest of the world Introduction The motorcycle market is a worldwide market within four mains segments: off- road, cruisers, touring and sport bikes. Ducati, a historical relatively small actor with of the market, is facing the international competition and would like to gain market shares. This study is about how can Ducati choose the right strategy and do the right investment in order to develop their market share and overpass Harley- Davidson profitability? In a first part, we are going to present the analysis of the market. [...]

[...] Competitions are mostly the referent in the market, and companies' needs to win races to become trustful and famous. Only a few won, and the cost is really high. Opportunities and threats: Customers are willing more and more for enjoyment products that they can use in their weekend. This is exactly the target of Harley-Davidson, and they are the company with the best financial ratios thanks to customers around 40 that can spend more money than people between 20 and 30 years old. [...]

[...] Ducati has made the successful choice to outsourced most of the production, and it made the company flexible. The time to launch a new product has been significantly flexible, and they now just make marketing, RD, conception and advertisement. The company has been recently restructured with a direction aware to change the sense of the brand. They want to sell dream and a new successful concept has been adopted in dealers shop. They want to entertain and enhance the brand, with place in shop in a museum in Italia dedicated to the brand. [...]

[...] - Closer relationship between marketing and RD can be sourced of innovation - Numbers of competitors is declining - Opportunity for enjoyment products - Want to turn into a company who sell dream and passion - Limited edition and internet sales are well functioning - Diversification has begun into motorcycle equipment - Naked motorcycles is a source of growth for the market Threats - Japanese very strong in off-road - Harley Davidson attack Ducati on his core market: sport bike by buying the company Buell specialized in. - Harley Davidson is more efficient, has a batter brand image and financial incomes. They created a strong community around the brand. [...]

[...] BMW is well implanted in the USA, Ducati will use the distribution network to offer their products. They must be adapted to the local market. None brand will be stop and the strategies is to pursue a brand strategy, not a product strategy, even if they will have anyway to be competitive. As Ducati is two times bigger in market share, they will own 66% of the new company. The new company will own of the world market share which make a company big as Kawasaki. [...]