Bajaj Auto Ltd.: Overtaken in the Indian Scooter Market

Case Code: BSTR216
Case Length: 20 Pages
Period: 1999-2006
Pub Date: 2006
Teaching Note: Not Available

Price: Rs.400
Organization: Bajaj Auto Ltd.
Industry: Auto & Ancillaries
Countries: India
Themes: Market Strategies, Customer Preferences, Competition

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

Bajaj Auto Limited (BAL) is one of the leading players in the Indian two-wheeler market, the second largest two-wheeler market in the world. The case traces the company's rise to dominance in the scooter segment of the market, and its eventual fall, against a backdrop of changes in customer tastes and preferences. It describes the reasons for the shift in demand and discusses the initiatives that the company undertook to regain lost ground. The case also discusses the competition in the Indian scooter market, and ends with a brief discussion on recent developments in the two-wheeler market.

Issues

The case is structured to achieve the following teaching objectives

Examine the evolution of an industry -- specifically, the Indian two-wheeler industry -- over time, and the challenges faced by the dominant players with the industry being liberalized and opened up to competition
Appreciate the impact of the economic, social, and cultural changes on the fortunes of an industry
Analyze the strategies adopted by a company to stay relevant in a changing environment
Understand the importance of keeping track of changing customer changing needs and preferences and adopting a customer-oriented product strategy
Gain insights into competition in the Indian two-wheeler market

Introduction

Background Note

BAL and the Indian Two-Wheeler Market