Analyze Ducati’s Essay

As the case mentioned, Ducati was experiencing a financial crisis before 1996. Just right before Ducatis bankruptcy, Texas peace-loving Group took over the company and appointed Minoli as the leader for the rising management team. Despite having higher(prenominal) tech motorcycles, Ducati suffered from lack of high timberland reputation due to poor management and inefficient production. Under Minolis management, he successfully established Ducatis incumbrance logic as a sports bike leading brand, and set companys core goals as to increase growth as well as handle profit margin.Minoli began this goal-oriented strategic decision and pointed out a blueprint in order to reshaped Ducati from head to toe. He not only made Ducati to be perceived as a brand to compete in its receding sports segment, but also reeducated the publics thoughts toward Ducati as a modus vivendi and entertainment rather than just motorcycles alone. One key to branding is to swear customer retention. As ment ioned in the case, since 55 percent of Ducatis customers lean 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 beat in mind, Minoli launched levels of investments in customer retention activities to accompany his branding strategy. Implementations let in things such as advertising to broaden customer base, creating customer profit for quality satisfaction, bike customization for brand niche segmentation, and building Ducati heritage to reforge customer loyalty. In addition to branding, Minoli also reorganized production formation by outsourcing majority of Ducatis basic components to maintain the flexibility and capacity for the production process (76 to 87 bikes produced per worker in 3 year) .Standardizing cylinders and locomote 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 started a crude distribution strategy by reorganizing dealerships. To improve the quality and control of the dealerships of Ducati, Minoli began to coiffe dealerships by carrying only Ducati motorcycles and accessories.Although this act subsequently reduced a be of dealerships in the region, total annual registration still had increased by more than 300% from 2310 to 9750 within 4 years in Italy. In sum, Minolis turnaround 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 destination profit sustaining possible. work citedGavetti, Giovanni Ducati page 11.