Ducati
1. Looking back at the situation of Ducati in April 2001, what would be your analysis of risks / threats? Use 5 forces
One of the biggest risks for Japanese companies were the Ducati of competition. Most of these companies (Honda, Yamaha, Suzuki, Kawasaki), are large international manufacturers with large capital investments in technological innovation and economies of scale resulting in lower costs. This gave them the advantage of introducing new products with technological innovations to lower prices. A clear example of this was the case of SS651 Superbike, the Ducati which could not increase the price or compete on cost, so he had to abandon the manufacture of the model.
Ducati was another threat to the economic environment, in this particular case, the collapse of the U.S. dollar will mean losses of 19.3 million euros, which depend mostly on the Italian suppliers, most of its costs (suppliers) are in euros.
2. How did you do to Ducati from 2001 to 2005 after a successful conversion? Analyze the performance of the company from financial and non financial.
From a financial point of view, in the period 2001-2005 Ducati fell about the progress of their conversion and return to a stage of crisis. Sales revenue declined by a compound annual rate of 2.3% from 379.5 million euros in 2000 to 320.8 million euros in 2005. Similarly, profits fell from 10.5 million in 2000 to a loss of 41.5 billion euros in 2005. As a result of losses in the company, the shares in the Milan stock exchange had a significant decrease, which means a destruction of value for the company.
From a strategic standpoint, the problem was growing too fast. From 1996 to 2001 from sales of 11,000 to 40,000 motorcycles a year. According to Minoli, andalusia steps to grow so rapidly in a very short time, the organization is stretched and loses efficiency. Once again stable, it needs to grow at a pace sustainable in the long term.
Another strategic mistake was the change of the headquarters of the...
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