Bajaj Auto Limited's Business Strategy - From Market Leader to Follower
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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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Case Details: |
Price: |
| Case Code |
: |
BSTR344 |
For delivery in electronic format: Rs.
300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extraThemes
Failure of Strategy / Revival Strategy / Competitive Strategy |
| Case Length |
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16 Pages |
| Period |
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1990-2009 |
| Pub Date |
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2009 |
| Teaching Note |
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Not Available |
| Organization |
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Bajaj Auto Limited |
| Industry |
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Automobile |
| Countries
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India |
Abstract:
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The case discusses the business strategy of Bajaj Auto
Limited (Bajaj Auto), a leading Indian manufacturer of two wheelers. Bajaj Auto,
which sold two wheelers in India since 1945, was the market leader in the Indian
two wheeler industry till late 1990s. However, the company failed to visualize
the structural changes happening in the Indian two wheeler industry since the
early 1990s. After the Indian economy was liberalized in 1991, foreign players
entered the Indian two wheeler industry with their innovative products and
sophisticated technology. In spite of rising competition, Bajaj Auto neither
upgraded its scooter models, nor focused on the rapidly growing motorcycle
segment.
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In late 2001, Bajaj Auto initiated a transformation process
in an effort to transform its image from being a scooter manufacturer to a
motorcycle company. At the same time, the company continued its efforts to
revive the geared scooter market. The company continued to invest time and
resources in the geared scooter segment even till the early 2000s when the sales
of geared scooters were negligible as compared to the gearless scooters. Bajaj
Auto also failed to introduce innovative products in the rapidly growing
gearless scooter market. The company lost its leadership status in the scooters
segment to Honda Motorcycles and Scooter India (HMSI). The case examines how
Bajaj Auto became a follower both in the scooter and motorcycle segment from
being the market leader in the Indian two wheeler industry.
Issues:
» Understand the structural changes happening in the Indian two wheeler
industry in the 1990s and early 2000s and its implications.
» Examine the
growth strategy of Bajaj Auto over the decades.
» Study the transformation process initiated by Bajaj Auto and its impact.
» Analyze the shortcomings in the business strategy of Bajaj Auto.
Contents:
Keywords:
Bajaj Auto Limited, Indian Two wheeler industry, Market leader, Market Follower, Competitive Strategies, Liberalization of Indian economy, Hero Honda Motors Limited, Indian Motorcycles Industry, Geared scooters Segment, Gearless scooter Segment, Honda Motorcycle and Scooters India, Indian Rural Two Wheeler Market, Collaboration, Joint Ventures, Bajaj Chetak, Bajaj Super, Bajaj Caliber, Pulsar, TVS Motor Company, 100 CC motor cycles, Entry segment, Executive segment, Premium segment, Structural Changes in the Industry, Consumer Behavior, Demographics
Bajaj Auto Limited's Business Strategy - From Market Leader to Follower
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