Abstract
A business ability to survive in the modern competitive world is based on how it aligns its products with the customers’ needs……………………………
Keywords: Volkswagen, Ducati, acquire, takeover
Volkswagen Business Level Strategy
Introduction
The sole reason for the existence of a business is to make profits. In order to achieve this goal, a business should focus on satisfying customers’ needs. Simply put, a business strategy is a technique that a company implements in order to satisfy its customers…………………………….
Volkswagen Differentiation Strategy
Volkswagen business strategy is founded on differentiation. Basically, the company specializes in the manufacture and sale ……………………
Ducati Diversification Strategy
Diversification strategies are important techniques that enable businesses to maximize their profits by having a wide portfolio to serve thei…………..
Expansion Model Used by Volkswagen
Basically, Volkswagen used acquisition policy in its diversification into the motorcycle industry. In this case, the company bought all ……………………………………………….
mpetent management will ensure that it does not lose the opportunities presented by this takeover.
Justification for the Cost of Acquisition
Overly, the takeover cost of Ducati is a fairly priced and justifiable. To begin with, the acquisition will enable Volkswagen to have the right to manufacture motorcycles that are Ducati branded. In effect, the company will have access to a huge and robust market, which Ducati has built. For instance, Ducati had sales worth $630 million in 2011 and sold over 40,000 bikes. Impliedly, by Volkswagen acquiring Ducati at $1.1 billion, it was able to recover its initial costs since this figure is double what the business used to sell in a year. Further, given that Ducati produces luxury motorcycles, it is possible that it made a lot of profits in the 2011 sales since high-end commodities usually have huge profit margins.
As aforementioned, the acquisition of Ducati gave Volkswagen the right to use any patency rights that the company owns. Further, it gave Volkswagen access to display its other luxury vehicles such as Bugatti and Lamborghini in Ducati store. Moreover, this acquisition enabled the company to avoid the huge costs of setting up a business and establishing managerial structure (Spender, 2014). Given the opportunities that the acquisition of Ducati presents, the $1.1 billion is fair and reasonable.
Conclusion
Impliedly, business strategies are important in enabling a company to shape its operations in line with the changing………………………..
Summary
Notably, this paper has presented a detailed analysis of the Volkswagen takeover of Ducati. Ideally, it has been able to investigate ……………………………
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