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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"Even though they [Bajaj Auto] have worked much harder
than Hero Honda in creating a differentiated product, none of them, other than
the Pulsar, have been successful."1
- Joseph George, Analyst at BNP Paribas Securities Limited, in January 2009.
Introduction
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On July 18, 2009, India-based Bajaj Auto Limited (Bajaj Auto), a leading manufacturer of two wheelers and three wheelers, launched the 100 cc Discover DTS-Si motorcycle. The new product had several unique features such as a Digital Twin Spark-Swirl Induction (DTS-Si) engine, nitrox suspension, the longest wheelbase in the 100 cc segment, a 5 speed gear
- the first in the 100 cc segment, and a maintenance free battery. Commenting on the new product, Rajiv Bajaj (Rajiv), Managing Director, Bajaj Auto, said,
"We are launching a bike which is not seen as a 100 cc bike and we wish to offer
it to people who typically buy 100cc motorcycles but would like to upgrade."2
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For Bajaj Auto, the launch of the 100 cc Discover DTS-Si motorcycle served as a point of re-entry into the entry segment3 of the motorcycle market.
Bajaj Auto Limited's Business Strategy - From Market Leader to Follower
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