Ktm Manufacture

KTM manufacture has been the fastest growing motorcycle manufacture over the past years. The Company is doing well in its off-road motorcycling which is known for its good reputation in reliability, high quality, and expertise of manufacturing core parts .Most of revenue came from off road motorcycles.

The political environment that surrounded KTM worked to its own benefit to some extent. 80 percent of its sales came from its own subsidiaries and 20 percent came through general importer. The general suppliers had control over its deals and dependent price negotiation. When the EU was formed KTM was able to establish its own sales and subsidiary standard regulations for each model it produced which enables the company to gain more knowledge about its production and more control of its brand name. KTM strategy was also unique in its approach to budget its margin profit before actual production occurred this enables KTM to monitor efficiency and sufficiency. The good relationship with its dealer helped the company to maintain a constant profit margin and avoiding “fire sales”. The dealer network kept KTM aware and tuned with the market and the customer buying behavior.

KML, Ducati and BMW had the largest presents in international manufacturing. On the other hand, Challenges of international market was crucial. Successful competitors were cost leaders making high volumes and low margins, and the integrity of brand name was not protected. North America market of motorcycles has shown growth over the past years. European market has been declining since the European Union has been applied on most of European countries. On the other hand motorcycle market in Asia and Latin America has been growing rapidly. Organizational structure and the work forced are selected carefully to ensure the adequate production and quality of product.

The Geographic expansion: when the EU has imposed regulation and standards on European countries KTM looked for other alternatives...