Bajaj Auto Limited's Business Strategy - From Market Leader to Follower

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Case Details:

Case Code : BSTR344
Case Length : 16 Pages
Period : 1990-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Bajaj Auto Limited
Industry : Automobile
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

What Went Wrong?

According to industry experts, Bajaj Auto, in spite of being the oldest manufacturer of two wheelers in India, was not proactive enough to visualize the structural demographic changes happening in India. Till the late 1990s, it was the market leader in the two wheeler industry. However, it did not upgrade its scooter models, nor did it introduce new motorcycle models. Despite the opening up of the Indian economy, and foreign players coming in with their innovative technology, it continued to rely on its old scooter models. However, with the competition growing, it was forced to focus on the motorcycle segment...

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Future Outlook

In the first quarter of the financial year 2009-10, the motorcycle unit sales of Bajaj Auto declined by 14 percent compared to the corresponding quarter of the previous year. However, the revenue sales figure grew by 29 percent compared to the fourth quarter of 2008-09. The company attributed this success to the launch of the XCD 135 DTS-Si, the new Pulsar 150 DTS-Si, and the Pulsar 180 DTS-Si since February 2009 (Refer to Exhibit V for Bajaj Auto's Vehicle Models and Exhibit VI for Bajaj Auto's sales performance in the first quarter of 2009-10)...


Exhibit I: Market Share of Leading Players in the Indian Two Wheeler Industry (FY 2008-09)
Exhibit II: Bajaj Auto's Financial Highlights (2007-09)
Exhibit III: Bajaj Auto's Logo
Exhibit IV: Motorcycle Sales and Bajaj Auto's Market Share in the Motorcycle Segment (1993-2009)
Exhibit V: Bajaj Auto's Vehicle Models
Exhibit VI: Bajaj Auto's Sales Performance in the First Quarter of 2009-10
Exhibit VII: Pulsar 220 DTSi

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