Bajaj Auto Ltd.: Overtaken in the Indian Scooter Market


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Please note:

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.

Case Details:

Price:
Case Code : BSTR216 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Market Strategies | Customer Preferences | Competition
Case Length : 20 Pages
Period : 1999-2006
Organization : Bajaj Auto Ltd.
Pub Date : 2006
Teaching Note : Not Available
Countries : India
Industry : Auto & Ancillaries

Abstract:

Bajaj Auto Limited (BAL) is one of the leading players in the Indian two-wheeler market, the second largest two-wheeler market in the world.

The case traces the company's rise to dominance in the scooter segment of the market, and its eventual fall, against a backdrop of changes in customer tastes and preferences.

It describes the reasons for the shift in demand and discusses the initiatives that the company undertook to regain lost ground. The case also discusses the competition in the Indian scooter market, and ends with a brief discussion on recent developments in the two-wheeler market.

Issues:

» Examine the evolution of an industry -- specifically, the Indian two-wheeler industry -- over time, and the challenges faced by the dominant players with the industry being liberalized and opened up to competition.

» Appreciate the impact of the economic, social, and cultural changes on the fortunes of an industry.

» Analyze the strategies adopted by a company to stay relevant in a changing environment.

» Understand the importance of keeping track of changing customer changing needs and preferences and adopting a customer-oriented product strategy.

» Gain insights into competition in the Indian two-wheeler market.

Contents:

  Page No.
Introduction 1
Background Note 2
BAL and the Indian Two-Wheeler Market 4
The Turning Point 6
BAL Fights Back 8
The Fall of an Icon 10
Outlook 11
Exhibits 13

Keywords:

Bajaj Auto, Bajaj scooters, Indian scooter market, Trends in the scooter market, Coping with changing trends, Demand shifts, Changing tastes

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