KTM: Quest for Growth

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 with healthy operating margins. There were several options open to KTM to expand into the ATV market, including internal development, 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. This case allow students to determine how best to pursue a related market to maximize revenue and cost synergies, learning, and control of the firm. This case can be used with KTM: Ready to Race, product 9B05M036.