Analyze Ducati’s Essay

As the case mentioned, Ducati was experiencing a pecuniary crisis before 1996. Just right before Ducatis bankruptcy, Texas Pacific Group took over the accompany and constitute Minoli as the leader for the modern management team. Despite having high tech motorcycles, Ducati suffered from lack of high timber reputation due to poor management and inefficient toil. Under Minolis management, he successfully establish Ducatis core logic as a sports cps leading brand, and set companys core goals as to increase growth as well as maintain attain margin.Minoli began this goal-oriented strategic decision and pointed out a blueprint in order to reshaped Ducati from head to toe. He not altogether made Ducati to be perceived as a brand to compete in its niche sports segment, solely also reeducated the publics thoughts toward Ducati as a lifestyle and entertainment rather than just motorcycles alone. unitary key to mark is to maintain customer retention. As mentioned in the case, since 55 percent of Ducatis customers ply to purchase more than one motorcycles, it is essential for Minoli to establish a high customer loyalty in order to have repurchase intentions.With that aim in mind, Minoli launched levels of investments in customer retention betivities to accompany his branding strategy. Implementations include things such as advertising to broaden customer base, creating customer service for quality satisfaction, bike customization for brand niche segmentation, and building Ducati heritage to reconstruct customer loyalty. In addition to branding, Minoli also reorganised production system by outsourcing majority of Ducatis basic components to maintain the flexibility and efficiency for the production process (76 to 87 bikes produced per worker in 3 year) .Standardizing cylinders and crank cases for different models, acquiring accessories and apparel company also allowed Ducati to yield a higher profit margin (12%) and turnover rate. Furthermore, Minoli also sta rted a new distribution strategy by reorganizing dealerships. To improve the quality and control of the dealerships of Ducati, Minoli began to limit dealerships by carrying only Ducati motorcycles and accessories.Although this act subsequently reduced a number of dealerships in the region, total annual registration still had change magnitude by more than 300% from 2310 to 9750 within 4 years in Italy. In sum, Minolis retroversion program has allowed it to create core competencies in brand, product, and R&D technologies by implementing strategies mentioned above. Lowering the cost as well as raising the revenue made Minolis goal of long term profit sustaining possible. work citedGavetti, Giovanni Ducati page 11.