Ktm Case Study

3661 Words15 Pages
KTM – Ready to race

Case study

Group 1: Kristina Misha Vladislava Adamenková Alina Schön Miro Verdel
KTM Sportmotorcycle AG is an Austrian motorcycle, bicycle and moped manufacturer. The company was founded in 1934 by engineer Hans Trunkenpolz in Mattighofen. It started out as a metal working shop named “Kraftfahrzeuge Trunkenpolz Mattighofen” and in 1954 the company began producing motorcycles. KTM, primarily a producer of premium off-road sports motorcycles, has been the fastest growing major motorcycle manufacturer for the past three years with a cumulative average growth rate from 1998-2001 of 31% in revenues and 50% in profits. Its improved financial performance enabled the company to pay down long-term
…show more content…
In contrast, Japanese manufacturers lacked the intimate contact with its dealers and do frequently need to put products on “fire sales”.
Company structure
After generating enough capital through its IPO, the company went private again to ensure its stability and leadership. BC European capital still has a 49% stake in the company but plans to exit the partnership. Because the Management Structure is lean and the company is privately financed, the two CEOs have a high level of influence over the operations of the company. That makes decision making and strategy planning faster and more efficient compared to companies of similar size.
KTM distributed 80 percent of its motorcycles through its own subsidiaries, who contract with dealers and 20percent through general importers. In the past, KTM had used general importers for all markets. This move was a major contributing factor to KTM´s success in recent years.
Dealer net
Dealer net is an electronic data processing system, which allows KTM to track shipments and inventory and co-ordinate logistics with every dealer it had on a global scale. It is also used as a marketing tool to disseminate information about adventure tours, festivals, competitors etc. Finally it is used to analyze trends in sales and customer buying behavior. It helps KTM stay flexible tune with the market.
Reputation of high quality motorcycles
There are numerous direct and indirect competitors with such a
Get Access