KTM One of the Leaders of Motorcycle Industry Term Paper

KTM One of the Leaders of Motorcycle Industry - Term Paper Example Its competency and high quality are due to its expertise in the manufacturing of core parts (e.g. engines, radiators and exhausts). In 1991, KTM went bankrupt and was purchased by Dr Rudolf Knà ¼nz, who is now the chief financial officer of KTM and Stefan Pierer, along with a couple of European Importers and a venture fund, later on, the two partners bought out the whole company from the importers. KTM went public in the year 1996 so that it could gain more market share, grow and be able to buy out its venture fund. In the late 1990’s there were talks of mergers and acquisition but the owners of KTM wanted internal growth. It again went private in the year 1999 so that KTM remained stable and under good leadership. This move was aided by equity financing from BC European. Most of the revenues that KTM generated came from its off-road motorcycle sales. Mainly form Motocross and Enduro bikes which were basically termed as ready to race bikes. These bikes were the most popular and growing products because of their short lifespan and as they introduced new models and upgraded them regularly. Other products that come under off-road bikes that KTM offers are sportminicycles, rally bikes and supermoto bikes. All of these generally relate to sporty and adventurous people and cater to all ages. For example, sportminicycles are entry level bikes specially designed for children. What’s different about KTM products is that they have a distinctive engine configuration and unique design elements. They are reliable, compact and extremely efficient and effective at a performance. Their styling is unique and is much more diverse than other Japanese bikes. They combine the Italian style with German engineering giving it a competitive advantage. These are all the features that are necessary for the off-road category. KTM generally uses its off-road racing as a major advertising strategy and marketing activities. Its main purpose is to promote its brand as a very adventurous and sporty brand and they do it by sponsoring such racing events.