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Ducati Essay Topics & Paper Examples

Ducati Solution

Today, Ducati is one of the most successful motorcycle companies in the world with adramatic profit growth since 1996. Before its huge success, Ducati was one step away fromfacing bankruptcy. Ducati managed to overcome such an obstacle through strong innovation andculture. Today, Ducati is faced with another challenge that may bring fortune to the company if successfully managed. Ducati set a new goal, which is to sustain the explosive double-digit profitgrowth in the next decade and eventually reach Harley Davison’s profit level. Ducati isconsidering attacking Harley Davidson by entering the cruiser market, which is HarleyDavidson’s niche product and also a very profitable market segment in the industry. To do this,Ducati must invest 17 million Euro and cost of 26 million…

How Did Ducati Become 2nd Most Profitable Motorcycle Maker in the World

Platform Approach: Ducati divided the bike into a small number of component and sub-component assemblies. A supplier was responsible for managing and delivering the component. The platform approach minimizes detailed, multi-step assembly processes. Consequently, fewer Ducati man-hours are needed to assemble a motorcycle. The assembly expertise of each component is concentrated at the supplier so that Ducati assemblers can apply higher-value labor on the overall bike assembly. High Degree of Component Outsourcing: As of 2001, Ducati outsourced 87% of its components to suppliers. The company planned to increase that rate to 90%. As mentioned above, outsourcing component manufacturing to suppliers results in a concentration of expertise and higher levels of quality, as discussed below. Mission-driven Supplier Management: Ducati has the…

Ducati Solution

Issues/Challenges Today, Ducati is one of the most successful motorcycle companies in the world with a dramatic profit growth since 1996. Before its huge success, Ducati was one step away from facing bankruptcy. Ducati managed to overcome such an obstacle through strong innovation and culture. Today, Ducati is faced with another challenge that may bring fortune to the company if successfully managed. Ducati set a new goal, which is to sustain the explosive double-digit profit growth in the next decade and eventually reach Harley Davison’s profit level. Ducati is considering attacking Harley Davidson by entering the cruiser market, which is Harley Davidson’s niche product and also a very profitable market segment in the industry. To do this, Ducati must invest…