The global motorcycle market covers a varied range of machines like off-road cruisers, touring bikes and sports bikes. So far, Ducati has been a relatively small player, with a market share of only 6.7%. The company faces stiff international competition in its efforts to gain a larger market share. This study is aimed at giving Ducati an insight into the strategy to diversify the investments to gain market share and profitability and to place the brand at a higher position with its main competitor Harley Davidson.
The first part of the study presents an analysis of the market and highlights the strengths of the competition.
The second part of the study focuses on strategic alternatives for the company and presents a set of recommendations aimed at improving the market share and profitability for Ducati.
[...] Weaknesses Brand image seen as less reliable than the Japanese Competitors Company is focused only on racing bikes The portfolio of product is concentrated Communication only through specialized press E-business is not developed to its full potential Opportunities The average age of Ducati customers is 25 years whereas it is 46 years for Harley-Davidson. A person's purchasing power is necessarily higher when they are in the 40-50 age brackets. Hence the customers can afford to spend more then clientele of Ducati The number of competitors are decreasing Opportunity to develop luxury products Limited edition and internet sales are functioning well Diversification into motorcycle equipment has been initiated Threats Competition from [...]
[...] The merger resulted in a larger company, with a larger range of products posing competition to Ducati in the sports model segment The threat of a substitute product: An intermediate threat. For most customers, buying a motorcycle is a well thought out decision and is viewed as a luxury purchase. Others buy a two wheeler as a more convenient and time saving mode of transport, as it is easy to navigate in heavy traffic. For the latter segment, scooters, cars and electric hand bikes are the other available options Competition within the industry a major threat: Competition within the industry is high due to a large number of competitors in the industry. [...]
[...] With its engine Ducati is poised to conquer the market of female bikers, especially those close to Harley- Davidson, the market benchmark. Ducati has successfully outsourced most of its production and this has made the company flexible in terms of operations. The company's operation was flexible during the period of the launch of its product and is currently focusing on marketing, R & D and advertising. The company has recently restructured in order to change the brand image. Ducati's objective is to sell a dream and a successful new concept has been adopted. [...]
[...] The portfolio of products is designed to cater to the racing-bike segments and ignores the touring and cruiser bike segments that account for 10% of the market Conclusion of analysis Ducati has shown significant improvement in the last five years, in terms of sales and profitability. Ducati has a good brand image, but is preceded by Harley-Davidson for the spirit and the Japanese bike manufacturers for the reliability. The process of merger between competitors makes the market more crowded and competitive. [...]
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