This SWOT analysis of Ducati will provide a closer look into the strengths and weaknesses as well as the opportunities and threats that this motorcycle manufacturer faces.
Technology superiority has long been a part of Ducati. The introduction of the Desmodronic valve distribution system and the L-twin engine brought a unique sound to the manufacturers’ motorcycle. This technological brilliance along with the top of the line engineers differentiated this Italian bike from its competitors. The unique sound and sleek Italian design play a small role in the increase of the strong brand loyalty of Ducati’s customer base. The case shows that between 1995 and 2000 the repeat purchase intentions had increased from approximately 55% to a little over 60%. This percentage brings it to one of the highest ranked in the European market. The Value Chain of Ducati seems to be quite efficient. Ducati begins with R&D from its top notch engineers. Following R&D, 87% of production is outsourced. Ducati became one of the most efficient manufacturers in the industry by increasing the production of motorcycles per worker from 76 to 87 units between 1997 and 2000. Ducati increased the quality and reliability of their product by having a strict selection and quality control process. The distribution of Ducati motorcycles is intended to provide quality dealers that offer technical and service support at superior levels.
Weaknesses that plague Ducati begin with the brand image regarded as less efficient and less reliable then the Japanese bikes. The target customers of Ducati are between the ages of 18 and 35. This age range is quite narrow compared to the other industry leaders. Previous poor management limited the amount of potential growth before Federico ...