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welcome to ...

... the motorcycle world - ducati

jakob rahel jaworska persson kristoffer lidfors lina zeng long zhazykpayeva saltanat

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the world of ducati

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ducati was founded in july 1926 bologna, italy product history 1950s-ducati singles 1960s-ducati apollo 1970s-ducati l-twin motorcycles 1980s-ducati desmoquattro motorcycles 2000s-monster 620, 695,750..

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Company Logo

Beginings
In 1926, three brothers, Adriano, Marcello and Bruno Ducati, founded Societa Scientifica Radio Brevetti Ducati in Bologna to produce vacuum tubes, condensers and other radio components, becoming successful enough by 1935 to construct a new factory in the Borgo Panigale area of the city. Production was maintained during World War II, despite the Ducati factory being a repeated target for Allied bombing.

Fir st Du cat i M ot or Cy cle (19 50)

This first Ducati motorcycle was a 60 cc bike weighing 98 lb (44 kg) with a top speed of 40 mph (64 km/h) had a 15 mm carburetor giving just under 200 mpg (85 km/L). Ducati soon dropped the Cucciolo name in favor of "55M" and "65TL".

When the market moved toward larger motorcycles, Ducati management decided to respond, making an impression at an early-1952 Milan show, introducing their 65TS cycle and Cruiser (a four-stroke motor scooter). Despite being described as the most interesting new machine at the 1952 show, the Cruiser was not a great success, and only a few thousand were made over a twoyear period before the model ceased production.

In the 1960s, Ducati earned its place in motorcycling history by producing the fastest 250 cc road bike, the Mach1. In the 1970s Ducati began producing large-displacement Ltwin motorcycles and in 1973, released an Ltwin with the trademarked desmodromic valve design. In 1985, Cagiva bought Ducati and planned to rebadge Ducati motorcycles with the lesser-known Cagiva. By the time the purchase was completed, Cagiva kept the "Ducati" name on its motorcycles.

 From the 1960s to the 1990s, the Spanish

company MotoTrans licensed Ducati engines and produced motorcycles that, although they incorporated subtle differences, were clearly Ducati-derived. MotoTrans's most notable machine was the 250 cc 24 Hours.

Motorcycle designs

Ducati is best known for high performance motorcycles characterized by large capacity fourstroke, L-twin engines featuring a desmodromic valve design. Modern Ducatis remain among the dominant performance motorcycles available today partly because of the desmodromic valve design, which is nearing its 50th year of use. This allows the cams to have a more radical profile, thus opening and closing the valves more quickly without the risk of valve-float, which causes a loss of power, that is likely when using a "passive" closing mechanism under the same conditions.

Ducati also extensively uses the Trellis Steel Frame configuration, although Ducati's MotoGP project broke with this tradition by introducing a revolutionary carbon fibre frame for the Ducati Desmosedici GP9.

Product history
The chief designer of most Ducati motorcycles in the 1950s was Fabio Taglioni (1920 2001). His designs ranged from the small single-cylinder machines that were successful in the Italian 'street races' to the large-capacity twins of the 1980s. Ducati introduced the Pantah in 1979; its engine was updated in the 1990s in the Ducati SuperSport series. All modern Ducati engines are derivatives of the Pantah, which uses a toothed belt to actuate the engine's valves

the world of ducati

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functional value - strategizing changes in production process cross functional teams decreasing amount of suppliers acquisition of apparel outsourcing sustaining r&d design and quality control in house three phased distribution system

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the world of ducati

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aesthetic value ducati owners club social events ducati.com symbolic value ducati museum ducati people ducati life style

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the world of ducati

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competitive advantage - 4

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the world of ducati

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competitive advantage - 4

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the world of ducati

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patterns increased market share manufacturing efficient

investments in r&d broader spectrum of customers some core attributes related to beauty-perspective excellent human resources growth plan enhance

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the world of ducati

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strengths embedded in all of the dimensions efficient production process high quality strong brand excellent human resources long lifespan of motorcycles weaknesses narrowed target audience heavily outsourced - high risk

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the world of ducati

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should ducati enter the cruiser segment?

relevant dynamic capabilities? different customers tough competition european cruiser culture? strong r&d but too focused on sport bikes? strong brand name - but is it helpful?

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Capabilities and their resources

Ability to connect intangible attributes around the motorcycle ( The world of Ducati ) First-class engineering capabilities Strong brand with high loyalty among customers Technical signature

How they made it sustainable

The world of Ducati (with museum, events, racings etc.) leading to unique feelings Increased lifespan

Top-notch engineers Strong brand and culture around it Quality control Product standardization

Weaknesses
Relatively low sales Weak distribution network

Entry into the cruiser segment?

YES! Reasons: Ducati has required capabilities, skills, strong brand etc. Their favorite engine perfectly fits the idea of cruiser Effective supply chain

 ...dream, passion, a piece of history, and the motorcycle at its core The World of Ducati , a Duke Museum, a history of racing victories and technical innovations

 Ducati Owners Club Co-branding strategy, DKNY, Neiman Marcus, Harrods and Sothebys

Competitive Advantage
Highly qualified designers & engineers; strong company culture Desmodromic valve distribution system, unique intoxicating noise History as winners of World Superbike Championship

Position & Capabilities

Unique & Exclusive high premium segment in the market What the motorcycles represent and evoke
firm.

 Porter, A firms resources and skills, reflected in its value chain, will usually be better suited to some segments than others, influencing the attractiveness of a segment for a particular

Four dimensions
In Ducati, the four dimensions of big, best, fast and beautiful are interacting to create a strategy of exclusivity. Big: Quality, and not quantity

Cont
Best: top-notch engineers & designers; desmo engine system;tubular trestle frame; Italian style Focus : exclusive brand image & innovativeness

Cont
Fast: platform approach; reduce lead time; outsourcing of basic components & keeping product design and R&D inhouse Beauty: a number of aesthetic and symbolic values associated with the brand; feeling of being cool and being part of the Ducati community; co-branding

Cont
Strength in all dimensions: interact & create unique brand Weakness : outsourcing in Fast may delay the production

Cruiser segment
Damage brand image The potential of selling enough cruisers in Europe is not as high as in USA