Ktm Case Notes
Autor: goude2017 • January 9, 2018 • 1,157 Words (5 Pages) • 706 Views
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• Bike club
• Value added shit
• Safety
Internationalization
• Overall trend
• Usual – local sourcing R&D and production infrastructure
• Successful companies tended to be cost leaders, low margins and high volume
• Integrity of brand name
• Localization
KTM
• Off-road popularity = Sponsorship of cross country racing events
• Reliable, high quality = expertise on manufacturing core parts
• Went private again
KTM’s products
• Motocross and endure fastest growing sectors bc of short half-life
• Helped with sale of spare parts = 13% of revenue
• Unique design and engine
• Unique styling, great engineering
• Sold at premium
• Connection with dealers
• Spare parts good for KTM and Dealers
• Dealer Net
• Tailered to experienced user
Dealer network
• 80% thru own sales subsidiaries
• 20% general importers
• Relied heavily on importers
• Good with multi-line dealers
• Big and little sources. Little sources more intimate
Organizational structure
•
Operations:
• 50% of cost came from procurement of parts
Recommendations:
*Internationalize under a different name in popular markets (Latin America)
*localization
*racing bikes in US
On Road
Off-road
BC European Capital owned 49% of company and would look for exit strat
Keys for off-road:
• flexibility in the marketing mix
• trends
• latest equipment
• strong dealer network: to two stroke vs harder to repair four strokepick up on trends and be quick to market
•
geographic trends:
• Pff road sales increase 18-18% in next three years
• European market sales to decrease
• Japanese market to decrease as well
• Asia = promising (no recreational use bikes though)
o Price competitive market
• Latin America = promising
o Growing middle class
o Popularity of motor sports
Competitiors
• Big 4
• Europe – BMW, Ducatii, and KTM, had international presence
• Off road = exhibit 2
• Product mixes = exhibit 3
• Highly diversified
• Financing available
Kawasaki
• Ninja
• Technology is high
• Deal w/ Suzuki
Suzuki
• Tech, youthful Japanese market
• No established biking community
Yamaha
• Design and racing technologies
• Cost efficient b/c of outsourcing
Honda
• Bike club
• Value added shit
• Safety
Internationalization
• Overall trend
• Usual – local sourcing R&D and production infrastructure
• Successful companies tended to be cost leaders, low margins and high volume
• Integrity of brand name
• Localization
KTM
• Off-road popularity = Sponsorship of cross country racing events
• Reliable, high quality = expertise on manufacturing core parts
• Went private again
KTM’s products
• Motocross and endure fastest growing sectors bc of short half-life
• Helped with sale of spare parts = 13% of revenue
• Unique design and engine
• Unique styling, great engineering
• Sold at premium
• Connection with dealers
• Spare parts good for KTM and Dealers
• Dealer Net
• Tailered to experienced user
Dealer network
• 80% thru own sales subsidiaries
• 20% general importers
• Relied heavily on importers
• Good with multi-line dealers
• Big and little
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