...of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation or any offer to purchase or subscribe for any Ducati Securities, nor shall they form the basis of, or be relied on in connection with any contract or commitment to purchase Ducati Securities. Any recipient of this document considering a purchase of Ducati Securities in a rights issue following publication of an Italian prospectus in connection therewith is hereby reminded that any such purchase should be made solely on the basis of the information contained in such Italian prospectus. The information in these materials includes forward-looking statements, concerning in particular economic and financial trends, which have been made by the management and are based on current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions. In light of this, the events described in the forward-looking statements may not occur. These materials are not being issued in the United States of America and should not be distributed to United States persons or publications with a general circulation in the United States. These materials are not an offer to sell or issue Ducati Securities in the United States. No public offering of Ducati Securities will be made in the United States. Ducati Securities have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be sold or issued...
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...Ducati Corse, a subsidiary of Ducati Motor Holding S.p.A, was responsible for managing the activities of the Ducati racing teams. Historically, Ducati had been the dominant force in the Superbike Circuit winning 13 titles since 1990. Until recently, Ducati was only part of the World Superbike series. But a recent rule by FIM (in 2001) permitting the use of 4-stroke engine in bikes as against 2-stroke engines, which was a mandate earlier (for MotoGP) prompted Ducati to get into MotoGP. Despite the fact that high costs were involved and Ducati faced the risk of being a late entrant into MotoGP, the Ducati team was highly enthusiastic about this new development. Ducati had a fairly successful first season (2003) but the 2004 campaign turned out to be disappointing. Determined to come back strongly, Filippo Preziosi, (Technical Director) and the team decided to move from an integrated design approach to a modular design for its next generation bike (GP5). Why did Ducati Corse succeed in its first year of MotoGP competition? Even though Ducati entered the MotoGP arena in 2003 as underdogs with very limited experience, they literally made their presence felt. They went on to achieve 14 front-row starts, 9 podium finishes, 3 pole positions, and even tasted one victory. One of the key reasons that I believe led to their success was the inner zeal, commitment and passion that the Ducati engineers displayed in designing the first GP bike. Few of the other important reasons for their...
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...Hi-Res Case Study: Ducati Motor Holding HIGH ROAD TO WORK ORGANISATION CASE STUDY Ducati Motor Holding (Bologna, ITALY) Alessandra Pistani & Matteo Boemi Nomisma December 2001 Abstract Ducati is a world leader in the production of high-powered sport motorcycles. Since 1996, following acquisition by the Texas Pacific Group, an American investment fund, the company has undergone an intense relaunch process involving several aspects of its organisation. This case aims to describe the change that has occurred in the reorganisation of production and the benefits that the new system has brought to the company. Hi-Res Project 2001. Page 1 Hi-Res Case Study: Ducati Motor Holding Hi-Res Case Study: Ducati Motor holding Sector Nace Code , high powered sport motorcycles. Key Words Interaction with suppliers; Outsourcing; leaning organisation. Table of Contents Abstract Keywords Sector 1. Background Information 2 Drivers for change 3 Characteristics and Process of change 4 Obstacles to change 5 Risk analysis 6 Benefits of change Conclusions 3 3 4 5 5 6 2 © Nomisma 2001 Hi-Res Project 2001. Page 2 Hi-Res Case Study: Ducati Motor Holding 1. Background Information The history of Ducati began in 1926 when the Ducati family and other investors in Bologna founded the ‘Società Scientifica Radio Brevetti Ducati’. The company initially produced industrial components for the growing field of radio transmissions, based on Adriano Ducati’s patents....
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...Case Study | Ducati: | | | | | Content 1. Summary 1 2. The Problem 1 3. Cast of Characters 2 3.1. People 2 3.2. Institutions 2 4. Chronology 3 5. Issues 5 5.1. SWOT analysis 5 5.2. Porter’s generic strategies analysis 8 6. Options 9 6.1. Focus on their core business 9 6.1.1. Advantages 9 6.1.2. Disadvantages 10 6.2. Expand to the leisure market 10 6.2.1. Advantages 10 6.2.2. Disadvantages 10 7. Recommendation 11 7.1. Focusing on their core business 11 7.2. Reasoning and Rationale 11 8. Plan of Actions 12 8.1. Invest in technology 12 8.2. Focus on their design 12 8.3. Make the sport a culture 12 8.4. Invest in the brand 12 8.5. Branding towards children 13 Summary Ducati is an Italian racing-motorcycle manufacturer whose products are characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. In its 80 years of history, the company has won eleven of the last thirteen World Superbike Championship titles and many more individual victories. Ducati produces motorcycles in four market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster and Sport Touring. The motorcycles are sold in more than 40 countries worldwide, with a primary focus in the Western European and North American markets. Despite its success in racing and products, the company went almost bankrupt in 1996 when it was taken...
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...Ducati was a company that was on the verge of going bankrupt in 1996 but took a turn for the better when it was acquired by Texas Pacific Group, driven by Abel Halpern, who then appointed his close friend, Federico Minoli, as CEO of Ducati. When Federico took over, he made it clear that the fundamental economic logic was “the idea that everything should be continuously re-discussed is still the way I look at things.” Ducati had the qualities of a profitable company but was lacking the right management. Minoli made it clear that he had two goals in mind: double-digit growth, and equaling Harley-Davidson’s profit level. If these goals were accomplished, Minoli believe he could “turnaround” the near demise of Ducati and look for continued growth and profitability. Minoli’s “Turnaround Program” would be seen as a successful plan in reinventing Ducati as a global brand and broadening its spectrum of customers. By looking at exhibits 1 and 3 in the casebook, we can see how Ducati’s market share (in its relevant market) nearly doubled from 1996 to 2001. Despite its small scale, Ducati was able to effectively create a strong global brand. We also see a steady growth of sales in every product line Ducati offers in exhibit 8. This was the road Ducati took to become the second most profitable motorcycle maker in the world. But in 2001, Minoli was at the end of the turnaround and needed to make a decision on how to keep expanding Ducati’s growth and profitability. To keep...
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...Creative Brief Client: Ducati Motor Brand: Multistrada 1200 Date: April 2010 Description: 1st Semester Campaign – New Brand Introduction What is The Brand? The Multistrada 1200 is a motorcycle manufactured by Ducati since 2010. The engine is a retuned version of the Testastretta from the 1198 superbike, now called the Testastretta 11° for its 11° valve overlap (reduced from 41°). All models include throttle by wire, selectable engine mapping (full power with sensitive or relaxed throttle response, and reduced power with relaxed throttle response) and traction control adjustable through eight levels. S models also include ABS (optional on standard model) and electronically adjustable suspension. The S Sport model features carbon fiber air intakes, cam belt covers and rear hugger, while the S Touring model comes with heated grips, hard luggage and a center stand. Product Manufacturer Background Based in Bologna, Italy, Ducati was a radio manufacturer before entering motorcycle production after the end of the Second World War. Known at first for its sporty line of lightweight single-cylinder bikes, Ducati hit its stride in the early 1970s with its V-Twin sportbikes that were the pinnacle in their era. Following some financial instability in the 1990s, Ducati currently produces several desirable racing-inspired motorcycles. All current Ducatis are built with signature steel trellis frames and 90-degree V-Twin motors. It also has a rich racing history with particular...
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...Motorbike Motorbike Ducati Multistrada 1200 The only bike you ever need to own Words by Govind It was Marcel Bode, the GM at Ducati Dubai, who introduced us to the Multistrada (MTS). We could have forever remained ignorant of this gem of a machine if not for his insistence to try it out. This might be the only bike you ever need to own. To make a comparison, the MTS is like a 12400mm f/2.8 SLR lens. And that’s a lens that doesn’t exist. The MTS is a safe bet if you are looking to get back on two wheels. It is multitalented, adequately powerful, seats two very comfortably and rewards the novice as well as experienced riders well with its ability to please beyond boundaries. The name itself means the bike is meant to be ridden over multiple types of roads. In fact, Ducati has engineered the MTS to be 4 bikes in 1. And boy, disappoint it does not! A gadget geek will be head-overheels with the MTS. The key fob can be forgotten in your jeans pocket. Keyless really is the way to go. Slide a switch downwards near the throttle to release the handle lock, flick it back up to reveal the starter button, and the very clear and informative main and sub LCD display lights up colorfully with a system check. The top end model we tried had all juicy acronyms standard with it. The most interesting ones being the Ducati Electronic Suspension (DES) developed with Ohlins, Bosch Brembo ABS and Ducati Traction Control (DTC). These three are interlinked to allow the rider to customize the...
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...luxury segment of the motorcycle market Luxury good market: • US 25% • Europe 38% • Japan 12% • China 3% • India ? • Russia 5% Harley trades on its image and nostalgia to sell its traditional bikes Harley is seen as a symbol of the freedom of the open road and has a loyal and passionate following Harley lags behind its competitors but is intentional. Harley relies on traditional styling in its status and image, not technology. Heavyweight bikes constituted 55% of the US motorcycle market in 2008 Harley has led the mc industry in domestic unit sales of heavy weight bikes for 20 straight years. In 2008, Harley manufactured 46% of the heavyweight mcs sold in the US European market is comprised of performance bikes such as the Ducati at 70%. So the V-Rod competes in this market segment. COMPETITORS Price is the competitive issue, and joint ventures between domestic companies and international motorcycle manufacturers like Honda and Kawasaki product affordable motorcycles of good quality. Australia and New Zealand are strong markets for Harley Competition in heavy weight is based on price, quality, reliability, styling, product features, customer preference, and warranties The company emphasizes quality, reliability,...
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...HBS Europe Research Center (ERC) Update July - December 2013 In this update: - New publications on EADS, Investindustrial, D'O, Siemens, Hg Capital, and Visma. - New completed research project on the transformation of European energy markets. - Ongoing research in General Management, Organizational Behavior, Technology and Operations Management, and Entrepreneurial Management. - ERC case interviews and field research in Austria, Belgium, Denmark, France, Spain, Sweden, and Switzerland, Selected events: Glocoll Program on campus; MBA events in Munich, Frankfurt, Paris and London; the European Area Conference; CSR Conference in Brussels; EAB meeting in Milan; L'Etudiant Conference in Paris; ELC Meeting in Geneva. It is with mixed feelings that we say farewell to our Research Associate, Mr. Karol Misztal. Karol first joined the ERC in 2010, and quickly became a valuable member of our team. We are thankful for his contributions to our organization and, undeniably, he will be deeply missed. Please join us in wishing Karol the very best of luck and success in all his future endeavors. We were also very fortunate to welcome two outstanding Harvard College students to the ERC team for a two-month internship: Ms. Nina Chen and Mr. Roland Yang. We would like to thank them for their great work and we wish them all the best for their future careers! br> And to all of you, Happy Holidays and best wishes for 2014! Newly Released Cases Case study "FX Risk Hedging at...
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...Ducati – Italian motorcycles Competitors: Harley Davidson, Honda, BMW, Triumph, Japanese (Yamaha, Kawasaki, Suzuki) -Decline in 1980’s due to a decision of its major shareholder at that time to refocus the company on products other than motorcycles. • Bought by Italian company Cagiva -Almost bankrupt in 1996—saved by American hedge fund, Texas Pacific Group and appointed Federico Minoli as CEO of Ducati • Wanted to broaden segment from extreme riders to broader spectrum of riders • “The World of Ducati” • Launched hyper-sport, super-sport, naked, sport-touring, limited editions, spare parts, accessories, and apparel • More focus on outsourcing production (90%) • More selective and strict suppliers—better procedures and quality control • New distribution strategy o Taking control of distribution and marketing in strategic markets by establishing totally owned sales and marketing subsidiaries o Reorganization of the network of dealers, improve average quality of dealers (competent sales force, good technical assistance, and adequate physical space) o Creation of chain “Ducati Stores” mono-franchise dealers in select markets and cities around the world • World of Ducati o Racing, advertising, museums, Ducati owners club, events 1st motorcycle—after ww2 • Il cucciolo—blockbuster ( • Technical signature = valve distribution system Suppliers (Low) • Dependent on suppliers—outsource manufacturing but they don’t need to • Carefully choose suppliers • Low switching...
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...|PROBLEM STATEMENTS/WEAKNESSES/STATISTICS |STRENGTHS/STRATEGIES IN PLACE | |What can be Ducati’s strategy for long-term growth? |Motocycles evoke” rebellion, freedom, desire, sex, mobility, design, technology, engineering, innovation, | |Was broadening of Ducati’s traditional niche the right move? |speed, and death” | |Should Ducati attack Harley Davidson’s niche with an interpretation of a cruiser? ** Ducati’s |Cruisers are big motorcycles with an upright riding position. Design emphasized styling over comfort and | |unexplored market segments include Off Road/Dual Purpose, Cruiser and Touring (Exhibit 5 – page 17) |speed., and preferred by many American riders. = this design will definitely not cater to European and Asian | |Ducati’s Fixed Sales Cost in 2000 is 3 times as that of HD (14.5Million vs. 5million). |customers. | |EBITDA – is a measure of a company’s cash flow before certain deductions. It is not a realistic view |Desmodromic engine ...
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...Kevin Cota Business 109 1/28/16 Case 3: Ducati 1. Product - > Desmodromic valve distribution system, Ducati 750 Super Sport, L-shape desmo engine, Formula Uno-derived tubular trestle frame. Operation - > Purchased by Cagiva, due to financial problems was sold to the Texas Pacific Group. Strategy - > Bring market share to 10%, invest heavily in the products and rationalize production processes, develop a global brand that would appeal a broader spectrum of customers. Distribution - > New strategy to take control of distribution and marketing in strategic markets by establishing totally owned sales and marketing subsidiaries, re-organization of the network of dealers, creation of “Ducati Stores” 2. Ducati can sustain its position in the sport segment, with its new business strategy it an remain an important part of the market. Other companies like Honda cannot stop its growth in the segment, however they can compete with them by imitating their strategies and improving their own companies. As long as Ducati maintains their recent success, they will be an important part of the market. 3. Minoli considered entering the cruiser market which was dominated by Harley Davison. This segment of the industry was highly profitable. In order to enter, Ducati would have to invest up to 43 million Euros. 4. Like Harley did with their brand, I would recommend Ducati to establish their brand as a lifestyle rather than a simple motorcycle bike. A lifestyle...
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...Ducati feedback Q1. I wanted you to begin by recognising that this was a turnaround situation, with Ducati in 1996 close to bankruptcy. A new management team led by Minoli changed strategy with clear objectives of aggressive growth within a niche of the sports segment and competing as a focussed differentiator. The logic of the turnaround can be conceptualised as follows (a) Ducati reduced costs without affecting the WTP for the physical product (i.e. the quality and reliability of the product has increased despite reduced costs). Major reductions were in motorcycle material costs (from 68.2% to 59% of unit costs, exhibit 12) and can be attributed to the following factors: (1) rationalised suppliers from 200 to 130 with the effect of increasing the quality of suppliers and Ducati’s bargaining power (2)Ducati increased its outsourcing from 80% to 90% and thus tapped more the potential of the Emilian mechanical district (3) Ducati further increased its bargaining leverage by instituting dual sourcing for the major components of the motorcycle and adopted short-term contracts (4) Ducati enjoyed economies of scale by increasing output from 12000 bikes in 1996 to 39000 in 2000 (5) Ducati increased the standardisation of its products (parts) and thus increased the bikes produced per worker from 76 to 87 in 200 (14% increase) (exhibit 13). (b) Ducati increased costs to boost WTP for the product’s intangible aspects (i.e. sport character, community, design, exclusivity, Italianess...
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...Unit Reading Leenen, S. & Jelassi, T. 2005, 'Ducati (Italy) vs. Harley-Davidson (USA)', in Strategies for E-Business, ed.T. Jelassi & A. Enders, Pearson Education Limited, Harlow, pp. 366-398. Ievisia-1111-1311 _. .. . .. _...__...__._ . . . ..___. _. . . ll I 1..-_. .. ..._._. . ._._ _ . __.. _ ._..._ __ i"“ Ducati (Italy) vs. Harley-Davidson (USA) Innovating business processes and managing value networks In 2001, as Ducati celebrated its 75th anniversary, Group (TPG) and Deutsche Morgan Grenfell Capital some executives wondered whether the recent corporate restructuring had repositioned the company (Italy). A new management team initiated a turnaround programme aiming at increased production efficiency, net sales and profit. ‘Since 1996, we were really working against a backdrop that wasn’t so far successfully. As part of this, the Italian motorcycle manufacturer had adopted a new focus on R&D, marketing and sales, moving away from its initial manufacturing strength. In addition, the company removed from bankruptcy’, said Carlo di Biagio, Chief Executive Officer of DMH. ‘Now our situation is different. Sooner or later, we think investors will see that.’ By 2001, the company had restructured its value chain activities, outsourcing 90% of its production and, in order to decrease costs, introducing a platform strat- had embraced the Internet, deciding in Ianuary 2000 to sell its new motorcycle, apparel and accessories exclusively online...
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...9-701-132 REV. MARCH 8, 2002 GIOVANNI GAVETTI Ducati By the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaround i artist” -- as Forbes magazine dubbed him –- had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world; a mechanical concern into a global brand; a fast motorcycle into a symbol of Italian design and tradition, extreme performance, and technical excellence. Under Minoli, Ducati had enjoyed explosive growth and profitability. Revenues had quadrupled since 1996; EBITDA had grown from 33.4 million Euros in 1997 to around 60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes segment in 1997 to 6.7% in 2000 (see Exhibit 1). Despite this success, Minoli was concerned with the future of the company. He knew that Ducati could not grow indefinitely, and was struggling with what strategy might overtake these bounds. Minoli and the rest of Ducati’s top management team were considering different alternatives. One alternative was to attack Harley Davidson’s niche with a Ducati interpretation of a cruiser. Was this broadening of Ducati’s traditional niche the right move to sustain the profitable growth of the company? The Market for Motorcycles in 2001 The roots of the motorcycle industry date back to 1868, when Louis Perraux installed a steam engine on a rudimentary bicycle. In 1894, the Hildebrand brothers and Alois Wolfmüller produced...
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