ART111 Lecture Notes - Lecture 6: Online Advertising, Fixed Asset, Brand Loyalty
Document Summary
The most effective factor to gain the position of most profitable motorcycle despite its low volume production, is operational effectiveness and an eye for the future. Platform approach adopted by ducati was effective for large number of components for both future and present. Responsibility for provision of components was appointed to a single key supplier who will manage supply of all sub components. Company acquired the strategy of maximum outsourcing to minimize fixed asset investment but dealt effectively with quality and reduced cost. In 2001 ducati was outsourcing about 87% which is much greater as compared to companies investing in to automate production lines and worked with parts suppliers to improve quality and delivery. R&d, design, quality control and trends in market fluctuations. Ducati initiated value creation through focused differentiation within its sports bike niche allowing higher premiums and premium brands positioning allowing higher premiums on motor cycles.
