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Alternative strategies for Ducati - Essay Example

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Summary
Ducati, one of the leading manufacturers of motorcycles was set up by Antonio Cavalieri on 4th July 1926. Ducati faced tight competition from other companies like Harley-Davison, Honda, and BMW…
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Alternative strategies for Ducati
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Alternative strategies for Ducati

Download file to see previous pages... Though Ducati products were well accomplished with technical excellence, as Professor Gavetti (2001) points out, the decision of the major shareholders to refocus on products other than motorcycles led way to the turn down of the company. The acquisition of Ducati by Cagiva improved the Ducati’s status in the market but eventually resulted in liquidity crisis which deprived the working capital funding of Ducati. As a result there was much delay in the payment as well as production. Ducati instead of widening its market to the production of variety of other products, it must utilize the technical excellence of its product lines for the manufacture of motor cycles. It must think of bringing up innovativeness in the design of motorcycles to attract and fascinate the customers. Women were found to contribute a major part of the customers for other motorcycle manufacturers like Harley. Hence, Ducati must pay attention to the choices of women and try to retain them as main customers. One of the key reasons for the under utilization of the Ducati’s potential and excellence was the lack of effective management strategies. Effective and well organized managerial strategies are recommendable for the development of any company and its trade. Thus Ducati must be directed by a dynamic and committed management in order to implement effective managerial strategies. The presence of a vibrant manger would eradicate the chaos and internal problems which were found to be significant barriers for the creative decision making. Identifying the real passion of people and implementing those in the production can be highly advantageous for Ducati in drawing the attention of customers and persuading them to buy the products. It is inevitable to focus on creating a good stature in the international market in order to grab the attention of customers because customer satisfaction is the ultimate objective of the modern market. As the competition is rising, Ducati must concentrate on building broader spectrum of customers by conducting effective market researches and thereby upgrading innovativeness in the production processes. According to Gavetti (11), Ducati adopted firm selection procedures and other control measures which resulted in the reduction of the number of suppliers; they hardly had any long term suppliers. Though this enhanced the quality and reliability of their products, it resulted in the increased maintenance costs. It is required to focus on the quality of products and at the same it’s important to maintain adequate number of suppliers. The choices of the sources of suppliers can be increased only by maintaining adequate number of suppliers. It is possible to choose the potential supply at affordable prices through the option of selection from a wide range of suppliers which would assist the company to increase the effectiveness of its operations. To conclude, Ducati should be up-to-date with the varying tastes and preferences of the consumers and try to bring the identified needs to the product line. The major suggestions are listed below 1. In the given case, exhibit 5 represents that Ducati does not produce cruiser, touring or off-road bikes; instead, they mainly concentrate on bikes over 400 cc. It would only satisfy the interests of youngsters, and the majority public has been ignored. So, it is advisable that Ducati should enter the market of general types of motor cycles also. 2. Similarly, exhibit 8 indicates that sales of super-sport bikes do not show a noticeable upward trend. Hence, it is suggestible to make adequate modifications in this model after surveying consumers’ ...Download file to see next pagesRead More
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