Case Name :      KTM: Quest for Growth

Authors :           Charlene Zietsma, Iris Fischlmayr, Rob Wong

Source :             Ivey Publishing

Case ID :            906M60

Discipline :        Strategy

Case Length :    19 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

KTM was a leading sport motorcycle company based in Austria, with sales internationally. In 2005, the company was considering expanding into all terrain vehicles (ATVs), a market which was experiencing mid- to high double-digit sales growth and healthy operating margins. There were several options open to KTM to expand into the ATV market, including internal development or acquisition of another firm with capabilities in the area of allying with an ATV manufacturer. The chief executive officer had to consider the fit of the ATV business with KTM’s core business, as well as the implications of the various options for ATV market entry on maintaining control of KTM, achieving KTM’s growth objectives, and effectively exploiting the ATV opportunity in an international context.