Audi 2015 Annual Report Download - page 200

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES
200 >>
/MOTORCYCLES SEGMENT
As well as the most significant and latent risks and opportuni-
ties for the Audi Group, there are segment-specific risks and
opportunities for the Motorcycles segment. The significance of
these risks is also reflected in the order in which they are pre-
sented here.
// RISKS FOR MOTORCYCLES SEGMENT
The Ducati Group enjoys worldwide renown as a successful
manufacturer of premium motorcycles. Like the automotive
industry, the Ducati Group faces the challenge of operating in
an increasingly complex environment characterized, for exam-
ple, by volatile markets and the changing requirements of
customers and stakeholders (with regard to sustainability, for
example). Ducati addresses this risk by continuously optimiz-
ing its structures and processes, and providing regular training
for its employees.
Bologna (Italy) is where the Ducati Group has its main produc-
tion facility for motorcycles. The main warehouse is also locat-
ed there. The Ducati Group therefore needs the Bologna facility
to be functioning and operational at all times. A failure or
operational restriction, for example as a result of a fire, would
have serious consequences for the ability to deliver products. As
well as the image loss, there would be financial consequences
in particular. Fire prevention measures and safety plans as well
as insurance cover constitute risk-minimizing measures; these
are regularly reviewed and developed.
There is also a fundamental risk that measures will need to be
carried out on Ducati motorcycles retroactively in the field.
This could have a negative effect on image and sales figures.
Comprehensive quality management along with ongoing moni-
toring in the field and customer surveys are used as counter-
measures.
The Ducati Group is exposed to natural fluctuations in the mar-
ket and is in competition with a large number of motorcycle
manufacturers. Particularly in traditional markets such as the
United States and Europe, it is highly challenging to remain
competitive when there is the risk of lasting market satura-
tion. To shore up its planned market shares, Ducati revises its
attractive product portfolio annually. In addition, Ducati regu-
larly analyzes opportunities for growth in new markets.
Motorcycle quality and design are the key premium expecta-
tions of Ducati customers. The risks of non-conformity within
product development and quality assurance processes are
addressed through a wide array of measures. These include a
specific product development process with regular quality and
approval milestones. This approach tackles the risk of possible
field campaigns, image loss, additional costs and compensa-
tion claims or penalties.
The expertise of the Ducati workforce is a vitally important
factor in meeting high customer expectations. Specially quali-
fied employees are needed particularly for the development of
innovative lightweight construction as well as engines. Thanks
to its attractiveness as an employer and its strong brand image,
Ducati is well positioned to compete for the best specialists
and endeavors to preempt any risk of a shortage of experts. In
addition, the company actively addresses this risk by using
strategic human resources planning and other tools such
as international recruitment activities to manage long-term
development measures and loyalty tools in the human re-
sources area.
// OPPORTUNITIES FOR MOTORCYCLES SEGMENT
New market opportunities could be created for Ducati by add-
ing yet more attractive models to an expanded product range
and by entering new customer segments, for example. In
addition, Ducati could unlock extra potential through innova-
tive business areas, for instance related to customer racing
activities. The entry into new markets, which includes the
establishment of dealer functions, and the expansion of local
manufacturing operations in Asia are generating additional
opportunities.
The expertise and experience of the Audi Group can help with
the quick and efficient implementation of the Ducati brand’s
internationalization measures. In addition, the Audi Group
offers the Ducati brand further synergy potential in operational
and purchasing processes as well as business partner net-
works.