Essay About Bc European Capital And Successful Companies

Ktm Case Notes
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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)
Price competitive market
Latin America = promising
Growing middle class
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
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)
*localizationBC 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)
Price competitive market
Latin America = promising
Growing middle class
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