Objectives: Demonstrate the logic of a highly focused competitor.
Demonstrate the value of a higher Willingness To Pay (WIP) in a competitive situation.
Illustrate how tailoring a firms entire set of activities to a particular set of products, customers, and geographic markets can strengthen its competitive position.
Discuss how a combination of tradeoffs and fit can protect a firms competitive position.
Show the limits of a focused strategy, particularly regarding growth, and how a company like Ducati can overcome these limits.Questions:1. How did Ducati become the second most profitable motorcycle maker in the world, despite its small scale? What is the fundamental economic logic of Minolis turnaround?
2. Can Ducati sustain its position in the sport segment? Can Honda and other Japanese manufacturers stop its growth in this segment?
3. What strategic alternatives were available to Minoli in 2001?
4. Which alternative would you recommend? Why?
5. Looking in todays market, analyze the momentum (or lack-of) that Ducati has generated, and discuss its current position. Consider its SWOT.
6. Compare the recovery strategy of Minoli to that of Ghosn at Nissan.
7. What are the valuable lessons you have learned from this case?
Issues: Was there an economic logic in Ducatis turnaround?
What was Ducatis buyer value or Willingness To Pay?
How did Ducati reduced cost without affecting the WTP?
Why did Ducati increased cost to boost WTP for intangible aspects?
Aggressive growth is it a strategy or a consequence?
Attract new riders to the Naked models
Offer more Naked models
Sell high margin accessories and apparel
Attract new riders to the Ducati community
Eventually sell loyal customers high margin bikes