Ducati: In Pursuit of Magic Case Analysis
By: Hanmiao Li, Bohong Liu, Adam Loewer, Tianyue Shao, Yi Wei
Ducati is a specialized manufacturer of racing and sport motorcycles based in Italy. In this case report, we will analyze Ducati’s competitive position through an opportunities and threats analysis, Porter’s Five Forces, a value and cost drivers analysis, as well as the VRIO framework.
One of the biggest opportunities in the motorcycle industry is the growth trend of 3.3% in unit sales over the past five years, mostly in the United States and Asia/Pacific markets. Also, the rapid growth of women ridership offers the potential of an even larger customer base in the future. In the sport segment in particular, growth in …show more content…
Ducati’s main competitive advantages are its brand as well as its history. They offer a unique and differentiated product and have a brand with high customer loyalty. The brand benefits from its association with the Emilia region, home to Ferrari, Maserati, and Lamborghini, where the majority of Ducati’s components are built. The brand is also boosted by its strong performance in professional racing and the establishment of the Ducati museum. Ducati also has several technological advantages such as the Desmo control system which allows Ducati’s 2-cylinder bikes to perform as well as competitors’ 4-cylinder engines. Also, Ducati’s L-twin design provides lighter weight and improved aerodynamics. Finally, the low-hum engine sound, enhanced speed and greater rigidity brought by the Formula One-inspired tubular trestle, and Italian design were all elements that made Ducati be more attractive to the customers, especially female riders.
The firm is disadvantaged in the entry bike category. The Japanese manufacturers are successfully selling their entry bikes with more technology at lower prices. Furthermore, the effect may be even worse if the Japanese brands are retaining these customers on their future motorcycle purchases. Also, Ducati recognizes a certain