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
The Indian Two Wheeler Industry
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The history of the Indian two wheeler industry can be traced back to the mid-1900s. In 1952, Enfield India Limited (Enfield) started manufacturing motorcycles. In 1955, Automotive Products of India (API) began manufacturing scooters in the country.
In the 1950s, two other companies, Ideal Jawa (India) Limited (Ideal Jawa) and Escorts India Limited (Escorts) also entered the motorcycle segment. Enfield, which initially imported the Bullet, a 350 cc motorcycle from the United Kingdom (UK), started producing it in India in 1956. Ideal Jawa and Escorts sold motorcycles under the brand names, Yezdi and Rajdoot. In 1971-72, the motorcycle segment held a 36 percent share of the total two wheeler sales...
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About Bajaj Auto
The history of Bajaj Auto dates back to the early 1900s. In 1930, the Bajaj Group was formed by Jamnalal Bajaj (Jamnalal). In 1945, Kamalnayan Bajaj, Jamnalal's elder son, established Bachraj Trading Corporation Limited (BTCL) to import and sell two and three wheelers in India. Till 1959, BTCL was importing two and three wheelers from Italy and selling them in India. In 1959, the company got a license to manufacture scooters in India...
The Transformation
In late 2001, Bajaj Auto started a new advertising campaign to change its image of being only a scooter manufacturer. In the advertisements, Bajaj Auto showed motorcycles instead of scooters as part of a conscious effort to change the company's image. The advertisements showed
'slice of life' situations of 'new age India'...
Excerpts Contd...>>
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