Ducati Case: Minoli’s Turnaround: Critical Thinking You Might Want To Emulate

The story of Ducati brand is interesting and demonstrative from the perspective of business development, management and company’s growth, as well as innovative reform. This is the story of the Italian motorbike manufacturer, which has managed to become the world’s second most profitable maker despite its comparatively small scale. The secret of its success lies in its CEO’s approach to turnaround management. The fundamental logic of Federico Minoli’s consists in choosing the path of rebranding, or brand redevelopment, rather than expansion or investment in efficiency improvements. This strategy has proven its effectiveness as a result.
When Minoli arrived at Ducati, he knew about the need for strategic change. He had obtained the reputation of a successful and effective turnaround manager in the industry, and his approaches were novice and customized to the needs of companies he was invited to turn around. His very interest and challenge always consisted in bringing change, in re-discussion of companies’ core values, policies, management and production. In Ducati Minoli saw liquidity crisis as well as potential, which had not been exploited to the fullest, hence the unconventional approach to change. Minoli’s decision consisted in creation of the global brand, a motorbike well differentiated among numerous competitors, and Minoli focused on attracting broader customer range, not only “extreme riders”. The change in the brand representation demanded ideological change.
The first decision looked a bit non-logical: instead of investing in production, or research and development, Minoli had chosen to invest in creation of the Ducati brand museum, which in the end appeared to be a critical part of Ducati’s brand. The motivation behind creating the museum was making history, defining and crystallizing a dream, a passion, and a Ducati motorbike was supposed to become the core of it. The focus of the entire business shifted from mechanical production to something more, to entertainment, to positioning of a motorbike within a real fan’s value system. This is how “The World of Ducati” was created. The peculiar characteristics of renewed Ducati brand were Desmodromic distribution system, L-twin engine, and tubular trestle frame at the technical side, with distinctive Italian style and unique sound at the image side. In addition, beside the motorbikes Minoli decided to merchandise accessories, which could have added to the recognizable style.