Compare and contrast Ducati's strategy with that of Airborne Express

Essay by mimieyesUniversity, Bachelor's February 2009

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There are a many similarities between Airborne Express and Ducati. Both companies' core strategies are alike, so does the situations that they were in. Both of them share the similar motto of "do what they do best in and have their own niche market and segment", and are both under the pressure of sustaining company growths.

List of similarity and differences can be listed starting with the four P's in marketing. First, promotion: both companies started without advertisings and heavy marketing forces. Airborne just started its 500 sales force and limited advertising, and Ducati did not even brand itself prior Minoli's control. However, in the price sense, due to different degrees of customer loyalty and position in market, Ducati has been able to charge premium prices to customers whereas Airborne can only charge at discounts.

Then place, or distribution, neither company has many retail stores. Thus, neither are the market leaders due to low penetration for the market in overall.

Airborne has no retail sites because its primary customers are business owners that ship in large quantities. Ducati changed its dealership type also, thus has lowered its retail sites in numbers. However, both companies are still able to sustain a great amount of revenue as well as growth as mentioned in cases.

Last, product, both companies have a limited amount of products available for the public. The switching cost for both company's products are on the opposite end. Both of them have a focused target market and a limited number(s) of segments. On the production side, it is also interesting to see how both companies acquiring their products by outsourcing. Airborne outsourced local trucks for deliveries whereas Ducati outsourced 90% of its components to local manufacturers.

There are many similarities between Airborne and Ducati. On the other hand,