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.
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.
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