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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Introduction Contd...
The company had reduced its focus on the entry segment
motorcycles three years earlier, citing low operating margins, even though the
entry segment motorcycles accounted for about 50 percent of the company's total
sales volumes in 2006.
Commenting on the launch of the new product and the
renewed focus on the 100 cc motorcycle segment, Rajiv said, "We are not changing
our strategy. The 100 cc market has got numbers. All we wanted to do was give
the commuter a choice, more value for money. We have no choice but to have
substantial share here."4
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Bajaj Auto, which had been selling two wheelers in
India since 1945, was the market leader in the Indian two wheeler industry till
the 1990s, riding on the success of its popular scooter models.
The company faced hardly any significant competition during
that time, but this worked against the company. It grew complacent, with the
result that it failed to realize the structural shift in demand toward
motorcycles among Indian consumers...
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