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Explaining the factors that determine demand and supply of houses in the UK during the above period
TABLE OF CONTENTS
1.0 Introduction to Organisation .................................................................................................................. 2 2.0 GAPS Analysis of Ducati .......................................................................................................................... 3 2.1 Management Perception Gap ......................................................................................................... 3 2.2 Quality Specification Gap ................................................................................................................ 3 2.3 Product Delivery Gap ...................................................................................................................... 4 2.4 Market Communication Gap ........................................................................................................... 4 3.0 Ducati Market Analysis ........................................................................................................................... 4 3.1 TOWS Analysis of Ducati ................................................................................................................. 5 4.0 Strategic Issues Faced by Ducati ............................................................................................................. 8 5.0 Strategic Alternatives for the Issues ....................................................................................................... 9 6.0 Implementation of Strategy .................................................................................................................. 12 6.1 Altering Companys Structure (People aspect) ............................................................................. 12 6.2 Change Management (Process aspect) ......................................................................................... 12 6.3 Control Systems............................................................................................................................. 12 6.4 Balanced Scorecard ....................................................................................................................... 13 7.0 Conclusion and Recommendations....................................................................................................... 14 REFERENCES ................................................................................................................................................ 15
develop product and service standard to be reflective for these perceptions and thus the focus on the quality is critical which is described by this gap (McKnight and Berrington, 2008). The products delivered by Ducati to the market are somewhat satisfying the customer expectations as the product attributes are developed and delivered in close alliance to the product developed standards by the company which are set after understanding what the customer expects from the company.
Harley-Davidson (American heavy motorbike manufactures, and present significant competition in the sports and custom bikes), Honda (the largest bike and scooter provider in the global market and considered most reliable by the customer for the fuel efficient, low emission and excellent engine design), BMW (top European automaker, well known for the innovative motor bike designs, and specialising in touring motorbikes), and Triumph (major market player in naked bikes and competition provides in the touring and sports bikes) (Gavetti, 2004). Other competitors in the market, which though have rather smaller market share but caused Ducati to lose considerable market include Japanese manufacturers like Yamaha, Kawasaki and Suzuki. These companies initiated by competing in small bike industry and gradually moved to heavyweight bikes. In addition to the competition, the business operations of the company have particular traits with the majority of the production being outsourced and the activities demonstrating the companys core competency like the research and development, design and quality control are under direct control of the company (Barksdale and Lund, 2006). In order to manage the supply chain, tools applied included just in time system and short term supplier contracts (Chung, 2012).
Table 1 Ducatis TOWS analysis for strategic alternatives EXTERNAL OPPORTUNITIES THREATS
External
Internal
o The emerging markets around the globe presents a potential for expansion for Ducati like the female market o Establishing online stores to extend the sale points for the company o Working capital must be acquired through different means o Acquisitions of potential companies working in the market to fortify the customer database on the Ducati panel
SO Strategy: Maxi-Maxi
o The increasing market competition o Emerging technologies in the field which are cheaper o Availability of product substitutes
ST Strategy: Maxi-Mini
o The unique and genuine product portfolio o Strong research and development o Highly skilled and competent engineering team
1. The exclusive products of Ducati be offered for the export 2. Acquisitions to attract more loyal customers for motor biking 3. Developing brand awareness in the international market 4. Innovative products could be used to further expand in the new markets based on not only the customer type but geographical presence
1. Customer services must be emphasised by developing the current marketing concepts applied at Ducati 2. Applying different marketing strategies, enhancing the customer loyalty 3. Innovative products must be developed to replace the products on the panel near maturation in future 4. Apply capital management for effective supply chain management
STRENGTHS
INTERNAL
WO Strategy: Mini-Maxi
WT Strategy: Mini-Mini
o Poor Supply Chain o Deficiency of the available working capital o Failure of the company to diversify o Inability to present company on online media o Reduced market share
1. Applying tools and techniques to enhance the affectivity of the current supply chain management system of the company 2. Involvement in strategic alliance to overcome the working capital deficiency 3. Applying tools of internet business operations to expand in Europe and international markets
1. To cope with the existing market competition, diversifying and restructuring the current product portfolio 2. Redefining the resource allocation to research and development in order to cope with the new technologies arising in the market 3. Consider the merger option to mitigate the liquidity crisis of the company
WEAKNESSES
Lack of Diversification
Increased Competition
Inability to replace
SOLUTIONS
OPTION 1
OPTION 2
OPTION 3
1. Supply chain management Planning in depth strategic plan through integration of global strategies of incorporation into global supply chain. Developing new products to facilitate this integration process
Applying
the
strategy on
of
Plan to enter into strategic alliance to enter the global supply chain integration
different
products on the company introducing also priced several innovative products reasonably
Try to find different potential sources to bring working capital to alleviate liquidity of the company
Diversifying to new markets with which innovative are products and designed
The
innovative of the
potential newly to
could be applied to capture introduced and segments by offering products existing customers which are more reflective of their expectations
Promotion of products already on panel and the innovative ones on online media using one stop shop and launching a marketing campaign to strengthen the online presence
Diversifying the brand name through internet in other geographical regions such as the Latin America, Asia and United States
Expansion
of
the
market
segment through online media in the United States, Latin America and Asia
The alternatives offered by the study identify the need for the company to utilise its innovation power to expand in the different newly identified market segments. This expansion would ultimately lead to increased revenue generation and in turn cope the liquidity crisis of the company. The best suitable strategy in the company with the described situation is about diversification (option 2). The justification of selected strategy is provided by reviewing its feasibility, acceptability, and suitability as follows. Outcome Feasibility Increased market share Strategic Option 2 By applying the strategy of diversification on different products on the company portfolio by introducing several innovative products with reasonable price will allow the company to expand to new markets which will lead to enhance its market share Acceptability New market opportunities Higher profits Strategic potential outcomes Suitability Competitive advantage Diversification and identifying new market segment could gain high appreciation from the company shareholders as it could lead to generate high profits by utilising the company potentials. Exploring the internet for new market opportunities could lead to significant contributions to profit generation The diversification strategy offered to the company is best suitable as the expansion of new marketing media and new market segments combined with the innovative companys potential could lead to get a competitive edge for the company
develop an effective control system with adequate resource allocation. For example, the company can launch its new product completely according to the demands of the customers after detailed research and development activities. This would be possible by promoting internal and external communication and ongoing research and feedback. Further, Ducati can use service blueprints to design routine processes which will support diversification procedure.
CUSTOMERS PERSPECTIVE
GOALS MEASURES
o Increased working capital through integration of global supply chain o Yearend financial records o Acquisition of financial resources
o Increase in number of customers per year Providing products on time in market o Increased customer satisfaction
SUPPLIERS PERSPECTIVE
GOALS MEASURES
INTERNAL PERSPECTIVE
GOALS MEASURES
o Integration of global supply chain management o Enhanced product manufacturing turnaround time o Increased customer satisfaction
On time delivery
Building long term o On time payments by relationships with enhancing the working the suppliers capital
REFERENCES
Barksdale, S. and Lund, T. (2006). 10 steps to successful strategic planning. San Jose: ASTD Press Chung, D. (2012). World Ducati week 2012 draws 65,000 fans. [online]. Available at: http://blog.motorcycle.com/2012/06/25/manufacturers/ducati/world-ducati-week-2012draws-65000-fans/ [Accessed 15 March 2013] Falloon, I. (2011). The Ducati story: road and racing motorcycles from 1945 to the present day, 5th edition, Yeovil: Haynes Publishing. Gavetti, G. (2004). Ducati [online] Available at: http://smile.solent.ac.uk/digidocs/live/Jackson/Gavetti.pdf [Accessed 13 March 2013] Hill, C.W.L. and Jones, G.R. (2007). Strategic Management: An integrated approach. Cengage Learning Johnson, G., Scholes, K. and Whittington, R. (2008). Exploring Corporate Strategy, 8th edition, Prentice Hall Liou, J.J.H. (2009). A novel decision rules approach for customer relationship management of the airline market, Expert Systems with Applications, 36, pp. 4374-4381. McKnight S. and Berrington, M. (2008), Improving Customer Satisfaction: Changes as a Result of Customer Value Discovery, Evidence Based Library and Information Practice, March. pp.33-52 Milan, R. (2012). Ducati close 2012 with positive financial report and 2013 range shown in Milan. [online] Available at: http://www.volkswagenag.com/content/vwcorp/info_center/en/news/2012/11/Ducati.html [Accessed 17 March 2013]. Morrison, M. (2009). Ducati strategy may have cost Haga title. [online] Available at: http://www.ducatinewstoday.com/2009/10/ducati-strategy-costs-haga-title/ [Accessed 15 January 2013]. Nolan, T.N., Goodstein, L. D. and Goodstein, J., 2008. Applied strategic planning: an introduction. New Jersey: Pfeiffer. Porter, M.E. (2007). Understanding industry structure. Harvard Business School, 16(2), pp. 3448.
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