Ducati

9-701-132 REV. MARCH 8, 2002 GIOVANNI GAVETTI Ducati By the end of 2000, Federico Minoli had won his battle. Over the bypast five years, the turnaround i artist -- as Forbes cartridge dubbed him - had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the domain of a function; a mechanical concern into a global shop; a fast motorcycle into a symbol of Italian design and tradition, extreme performance, and technical excellence. Under Minoli, Ducati had enjoyed explosive yield and profitability. Revenues had quadrupled since 1996; EBITDA had grown from 33.4 million Euros in 1997 to around 60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes constituent in 1997 to 6.7% in 2000 (see Exhibit 1). Despite this success, Minoli was concerned with the afterlife of the company. He knew that Ducati could not grow indefinitely, and was struggling with what strategy tycoon overtake these bounds. Minoli and the rest of Ducatis top management squad were considering different alternatives. One alternative was to attack Harley Davidsons deferral with a Ducati interpretation of a cruiser. Was this broadening of Ducatis traditional niche the right move to sustain the profitable development of the company?

The Market for Motorcycles in 2001 The roots of the motorcycle diligence date back to 1868, when Louis Perraux installed a steam engine on a rudimentary bicycle. In 1894, the Hildebrand brothers and Alois Wolfmüller produced the first motorcycle with an internal-combustion, two-cylinder flatulency engine. The motorcycle quickly became a cultural icon. As T. Krens, the curator of The Art of the Motorcycle exhibition at the Guggenheim Museum in modern York, observed: The motorcycle is a perfect metaphor for the 20th century. Invented at the beginning of the industrial age, its evolution tracks the main currents of modernity. The fair game and its history represent the themes of technology, engineering, innovation,... If you want to get a skillful essay, order it on our website: Orderessay

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