Ducati
- Strategic Analysis
두카티는 이탈리아의 유명한 오토바이 제조회사 입니다. 하지만 유럽시장을 위주로 활동하고 있기 때문에 아무래도 일본과 가까운 우리로서는 약간 생소한 측면이 있습니다. 게다가 일반인들을 위한 오토바이 보다는 경주용 오토바이에 집중하고 있어서 생산되는 오토바이의의 성향이 좀 다른 측면이 있습니다.
세계시장 점유율은 약 3.5%정도로 크게 앞서지도, 뒤쳐지지도 않은 상황입니다. 사실 3.5%라는 숫자는 오토바이 시장의 95%를 일본기업들이 차지하고 있다는 사실을 고려한다면 그렇게 적은 숫자는 아닙니다. 전반적으로 판단하자면, 두카티의 기업적 가치는 미국의 할리데이비슨과 유사합니다. 다만, 할리데이비슨이 무겁고 중후한 느낌의 대형 오토바이만 생산하는 반면에 두카티는 가볍고 빠른 경주용 오토바이만을 생산합니다.
SCCV2010Ducatiassignment.docx이번 과제는 "두카티를 위한 장기적 전략을 구상하라' 라는 주문으로 시작되었습니다. 시장점유율이 고작 3.5%인 오토바이 회사가 가지고 있는 기업적 가치를 분석하고, 이회사가 할리데이비슨과 같은 오토바이를 출시하는 것에 대하여 부정적인 의견을 제시합니다.
9, Ducati.doc
ppt ducati.pptx
Ducati and the Beauty Aspect
After the implementation of a new management team initiative by Minoli, on average a single young man became the central figure in the Ducati universe. Customer’s individual feelings and experiences, his willingness to be part of a community and culture are today essential parts of the Ducati brand.
As for the dimension of beauty, Ducati has much to offer both of aesthetic and symbolic values. Aesthetics is an individual judgment based on senses and feelings and this is exactly what creates the beauty about Ducati, from an aesthetic perspective. The motorcycle industry is in itself an industry to be either loved or hated. However, even those who are not too fond of motorcycles can find aesthetic beauty in Ducati. A judgment opposed to motorcycles may still have associations to the Ducati brand and might find aesthetic value in senses and feelings related to Ducati products. One such example is the unique sound. The engine sound of Ducati motorcycles will make most senses react. At times, there have even been attempts to patent the sound because the feelings it brings amongst its worshipers is that of true beauty. In a similar way, many technological solutions on the Ducati motorcycles create beauty through the senses and feelings they generate.
The beauty created through symbolic value is harder to identify in a tangible manner. If aesthetic value is created through the senses and feelings of engine performance, symbolic value has little relation to the functioning of the Ducati motorcycles. The symbolic values of Ducati are created through the social group of fans and customers who have created a subculture around the culture of “bikers”. This subculture illuminates the “… motorcycle for the would-be Ferrari driver: Italian, fast and, of course, red.” Ultimately, the symbolic value can be analyzed to be the value of belonging to something cool. Ducati riders are labeled as sporty and young, features preferred in most contexts.
With this in mind it can be argued that Ducati has been successful in commercializing its products based on the aspects of aesthetics and symbolic values. The competitiveness has further been enhanced as the brand has taken upon them to communicate the “Italian style” and the history of the company to the customers.
The beauty dimension of Ducati can be discussed as a strategic capability of the firm. The capabilities would in this sense be in the fields of corporate functions, research and development, product design marketing and sales and distributions. All these fields must be managed in a way that allows capabilities to deploy resources with success. The corporate functions carry many sources as they direct the mission of the firm. Two main sources are the management development of the new management team and the innovation of a new strategy. In relation to beauty, these sources have shown the direction of Ducati and successfully implemented it into the organizational culture. The history of the company has become a cornerstone of the symbolic value of the subculture of Ducati. R&D sources are engineers who have been able to generate a feeling and sense of beauty through aesthetics of the Ducati engine. Product design and marketing carries a great source of brand management where the subculture of Ducati has only grown stronger through differentiation techniques in motorcycle designs and marketing plans. Lastly, sales and distribution have the competitive source of competent staff and sufficient resources. Customer service is great at retailers and stores are few but exclusive, further enhancing the exclusiveness of the Ducati subculture.
In order to achieve sustainability, isolating mechanisms are necessary. It is important for Ducati to maintain the superior performance of their motorbikes. Not only is the quality and performance important but also indicators such as the World Superbike Championship. Superior performance must be sustained throughout all the activities and not only the product. Threats of imitation must also be limited. Foremost, Ducati has been able to eliminate this threat through the narrative of the brand and the culture around it. The history of Ducati is something that never can be copied. Another source of limiting imitation is the outsourcing Ducati is practicing. The outsourcing accounts for almost 90% of manufacturing and the network is centralized. Achieving the quality Ducati has at the moment is difficult with outsourcing being high and competitors cannot easily imitate such an outsourcing network.
In relation to the industry, only Harley Davidson can utilize on its culture in a similar way as Ducati. Other competitors have little or no cultural aspect as a competitive advantage. Competition performance of motorcycles is another resource that industry players look at with great interest. As customers view this as a major influence when purchasing a motorcycle, re and more producers find themselves in Championships of different kinds.
Strategic position does match well with the resources and capabilities at hand. Ducati seeks to be differentiated and create a feeling of exclusiveness for its customers and this is done through several activities mentioned above, all part of the Ducati World. However, industry position does not go as well with the resources and capabilities. With an industry share of 7% it seems that there is a lot of resources and capabilities at hand but it is hard to develop them into quantitative sales.
For motorcycle manufacturing companies the four dimensions of performance, lifestyle, comfort and function are the main aspects that shape their processes in order to produce motorbikes. Studying the “Big” perspective, Ducati focuses on different product segments such as Hypermotard, Monster, Multistrada, Streetfighter and Superbike in order to responds to different needs of Knees down riders, Weekend cruisers, Easy riders, Urban riders to define itself as a “sport bike company”.
Ducati enjoys a rich story-telling background, which shows the company’s traditional Italian culture that can contribute to differentiation from its competitors in the “Best” perspective. Furthermore, Ducati is always in an effort to increase its product’s quality based on motorbike elastic market which also can help to build a sustainable competitive advantage for Ducati.
In order to be “Fast” enough Ducati has great investments in R&D to have extreme performance and technical excellence in its products. Also Ducati’s cutting-down strategy in its production line (Internal design division) is another indicator of the company’s trying to be fitted as Fast.
Ducati enjoys from, symbolic and aesthetic values in the “Beautiful” perspective. The different products functionality, the design, the brand, the Italian culture and many other factors attribute to define the beauty of Ducati.
Ducati’s strength points can be best explained through Porter generic strategy. Ducati was successful to position itself as a sport-bike specific producer comparing to its competitors; e.g. one potential competitor is Honda, which has different activities such as car, motorbikes, robots manufacturing, etc. and can never position itself as a “sport bike company” (Best). Moreover another Ducati’s strength point is its high R&D developments, which differentiated its products in the market (Fast). On the other hand, Ducati’s main weak point can be its market share in the global market (Big) and its focus strategy (7% market share comparing to Suzuki 23.5% in 2001)
Ducati brand is known for its sport-oriented strategy. Speed, racing, lightweight are the first words coming to mind regarding Ducati, and these characteristics have nothing in common with Harley-Davidson heavy-weight/cruiser. The discussion to produce cruisers under the same brand within Ducati Motors can harm the unity of the brand and its brand recognition. The Harley customer is an image of a wild cowboy on the highway, whereas the Ducati admirer is a city racer, two customer types whose paths very unlikely will cross.
While building Ducati brand the new management team reinforced the production, distribution systems and made them efficient capabilities, which can be used for new cruiser brand, which can challenge Harley-Davidson and create its own subculture with a special lifestyle. In conclusion, the capabilities are at hand but a decision to go into the cruiser segment might harm the brand and its image.
