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Ducati Motorcycle Industry Analysis: Porter's 5 Forces

Autor:   •  October 8, 2013  •  Case Study  •  544 Words (3 Pages)  •  9,031 Views

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Case 2: Ducati

Using your knowledge of Industry Structure, is the Motorcycle Industry attractive to compete in for incumbent firms? Please explain. What is Ducati’s generic strategy? Please explain.

Rivalry: Rivalry within this industry is HIGH. There are many large companies vying for market share within each division, especially in the Sport division.

- Off-road: Japanese manufacturers, KTM, BMW, Huskvarna

- Cruisers: Harley-Davidson, Honda, Yamaha, Suzuki, Kawasaki, BMW

- Touring: BMW, Harley-Davidson, Honda

- Sport: Ducati, Japanese companies, BMW, Triumph, Harley-Davidson

Threat of new entrants: The threat of new entrants is LOW. The number of successful manufacturers has decreased over the years, and the overall number has continued to decline because there are few new entrants to replace them.

- Number of motorcycle manufacturers decreased dramatically over the last century

Threat of substitutes: The threat of substitutes is MEDIUM. There are many types of vehicles available as substitutes, but few products the same themes of “technology, engineering, innovation, design, mobility, speed, rebellion, desire, freedom, love, sex, and death” as motorcycles.

- Cars

- Mopeds

- All-terrain vehicles

- Snowmobiles

- Golf carts

Bargaining power of suppliers: The bargaining power of suppliers is LOW. Many motorcycle manufacturers have a large portion of their parts outsourced and are reliant on their suppliers, but suppliers are still replaceable.

- Who: Outsourced component manufacturers

- Most motorcycle manufacturers have outsourced a considerable portion of their inputs

- At Harley, they have set up a Supplier Advisory Council

- Manufacturing process has essentially become a final assembly line

- Many firms are running JIT systems

- When payments were delayed from Ducati to suppliers, significant production delays occurred, but when Ducati enforces stricter quality control, suppliers change or disappear

Bargaining

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