The Bajaj Group is Amongst the Top 10 Business Houses in India

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a

wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home

appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company,

Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the

Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South

and South East Asia. Founded in 1926, at the height of India's movement for independence from

the British, the group has an illustrious history. The integrity, dedication, resourcefulness and

determination to succeed which are characteristic of the group today, are often traced back to its

birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the

group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him

as his son. This close relationship and his deep involvement in the independence movement did

not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. 

His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too was close

to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention

to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into

various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of

the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company

has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the

brand has found a global market. He is one of India’s most distinguished business leaders and

internationally respected for his business acumen and entrepreneurial spirit.

Bajaj Auto Ltd.

Bajaj Holdings & Investment Ltd.

Bajaj Finserv Ltd.

Bajaj Allianz General Insurance 

Company Ltd.

Bajaj Allianz Life Insurance Co. Ltd

Bajaj Financial Solutions Ltd.

Bajaj Auto Finance Ltd.

Bajaj Allianz Financial Distributors Ltd.

Bajaj Auto Holdings Ltd.

P T Bajaj Auto Indonesia (PTBAI)

Bajaj Auto International Holdings BV

Bajaj Electricals Ltd.

Hind Lamps Ltd.

Bajaj Ventures Ltd.

Mukand Ltd.

Mukand Engineers Ltd.

Mukand International Ltd.

Bajaj Sevashram Pvt. Ltd.

Jamnalal Sons Pvt. Ltd.

Rahul Securities Pvt Ltd

Shekhar Holdings Pvt Ltd

Madhur Securities Pvt Ltd

Niraj Holdings Pvt Ltd

Shishir Holdings Pvt Ltd

Kamalnayan Investments & Trading Pvt Ltd

Sanraj Nayan Investments Pvt. Ltd.

Hercules Hoists Ltd.

Hind Musafir Agency Pvt. Ltd.

Bajaj International Pvt. Ltd.

Bachhraj Factories Pvt. Ltd.

Baroda Industries Pvt. Ltd.

Jeevan Ltd.

Bachhraj & Co Pvt Ltd

The Hindustan Housing Co. Ltd.

Hospet Steels Ltd

Management Team

Rahul BajajMadhur BajajRajiv BajajPradeep ShrivastavaAbraham JosephK SrinivasR C

Maheshwari

Rakesh SharmaEric VasKevin P D'saS Ravikumar

Amrut RathN H HingoraniC P Tripathi

ChairmanVice ChairmanManaging DirectorChief Operating OfficerChief Technology

OfficerPresident (Motorcycle Business)President (Commercial Vehicle Business)President

(International Business)President (Retail Finance)President (Finance)Senior Vice President

(Business Development & Assurance)Vice President (Human Resources)Vice President

(Commercial)Vice President (Corporate Social Responsibility)

Company Secretary

J. Sridhar

Company Secretary

Board of Directors

Rahul BajajMadhur BajajRajiv BajajSanjiv BajajD.S. MehtaKantikumar R. PodarShekhar

BajajD.J. Balaji RaoJ.N. GodrejS.H. KhanMrs. Suman KirloskarNaresh ChandraNanoo

PamnaniManish KejriwalP MurariNiraj Bajaj

ChairmanVice ChairmanManaging

DirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirec

torDirectorDirector   

Committees of the Board

Audit Committee

Shri Nanoo PamnaniShri S.H. KhanShri D.J. Balaji RaoShri Naresh Chandra

ChairmanMemberMemberMember

Shareholders’ & Investors’ Grievance Committee

Shri D.J. Balaji RaoShri J.N. GodrejShri Naresh ChandraShri S.H. Khan

ChairmanMemberMemberMember

Remuneration & Nomination Committee

Shri D.J. Balaji RaoShri S.H. KhanShri Naresh ChandraShri Rahul Bajaj

ChairmanMemberMemberMember

Registered under the Companies Act, 1956

REGISTERED OFFICEWORKS

Akurdi, Pune 411 035

Akurdi, Pune 411 035. 

Chakan Industrial Area, Chakan, Pune 411 501

Bajaj Nagar, Waluj Aurangabad 431 136

Plot No. 2, Sector 10, Pant Nagar, Rudrapur

Achievements

2009

April Bajaj Pulsar 150 & 180 upgrade launched

January Bajaj XCD 135 DTS-Si launched

2008

September Bajaj Platina 125 DTS-Si launched

August Bajaj XCD 125 DTS-Si is largest selling 125cc motorcycle

July Bajaj Discover 135 DTS-i Upgrade Launched.

June Bajaj Pulsar 220 bags IMOTY award

2007

December RE GDi autorickshaw launched

September Bajaj XCD 125 DTS-Si launched

August DTS-Si engine launched

July Revamping of Organisational structure

June Bajaj Pulsar 220 DTS-Fi launched

April New Bajaj Auto Plant at Pantnagar, Uttarakhand

February 200 cc Pulsar DTS-i launched

January Bajaj Kristal DTS-i launched

2006

April Bajaj Platina launched

2005

December Bajaj Discover launched

June Bajaj Avenger DTS-i launched

February Bajaj Wave DTS-i launched

2004

October Bajaj Discover DTS-i launched

August New Bajaj Chetak 4 stroke with Wonder Gear launched

May Bajaj CT100 Launched

January Bajaj unveils new brand identity, dons new symbol, logo and brandline

2003

October Bajaj Pulsar DTS-i is launched.

October 107,115 Motorcycles sold in a month.

July Bajaj Wind 125,The World Bike, is launched in India.

FebruaryBajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle

segment.

2001

November Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.

January The Eliminator is launched.

2000

2000 The Bajaj Saffire is introduced.

1999

1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months.

1998

1998 Production commences at Chakan plant.

June Kawasaki Bajaj Caliber rolls out of Waluj.

July Legend, India's first four-stroke scooter rolls out of Akurdi.

October Spirit launched.

1997

1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.

1995

November 29 Bajaj Auto is 50. Agreements signed with Kubota of Japan for the development of

diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and

moped development. The Bajaj Super Excel is introduced while Bajaj celebrates its

ten millionth vehicle. One million vehicles were produced and sold in this financial

year.

1994

1994 The Bajaj Classic is introduced.

1991

1991 The Kawasaki Bajaj 4S Champion is introduced.

1990

1990 The Bajaj Sunny is introduced.

1986

1986The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced.

500,000 vehicles produced and sold in a single financial year.

1985

November 5

The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail

Singh.

Production commences at Waluj, Aurangabad in a record time of 16 months.

1984

January 19 Foundation stone laid for the new Plant at Waluj, Aurangabad.

1981

1981 The Bajaj M-50 is introduced.

1977

1977 The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and

sales of 100,000 vehicles in a single financial year.

1976

1976 The Bajaj Super is introduced.

1975

1975 BAL & Maharashtra Scooters Ltd. joint venture.

1972

1972 The Bajaj Chetak is introduced.

1971

1971 The three-wheeler goods carrier is introduced.

1970

1970 Bajaj Auto rolls out its 100,000th vehicle.

1960

1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant.

1959

1959 Bajaj Auto obtains licence from the Government of India to manufacture two- and

three-wheelers.

1948

1948 Sales in India commence by importing two- and three-wheelers.

1945

November 29Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private

Limited.

TPM Policy 

SHE Policy 

Plants

Bajaj Auto's has in all three plants, two at Waluj and Chakan in Maharashtra and one plant at

Pant Nagar in Uttranchal, western India.

Waluj

Chakan

Pant Nagar

Bajaj range of motorcycles and three-wheelers 

Bajaj range of motorcycles

Bajaj range of motorcycles

Plant Locations

Bajaj Auto plants are located at:

Bajaj Nagar, Waluj, Aurangabad 431 136

MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. Pune

Plot No. 2, Sector 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist. Udhamsingh Nagar

Uttranchal

Bajaj Auto Limited (herein after referred to as the "Company") hereby adopts the following

Code of Conduct for Affirmative Action. This will be effective from 1st December 2006.

The Company affirms that its competitiveness is interlinked with the well being of all sections of

the Indian society.

The Company believes that equal opportunity in employment for all sections of the society is a

component of its growth and competitiveness. It further believes that inclusive growth is a

component of growth and development of the country.

The Company affirms the recognition that liersity to reflect socially disadvantages sections of the

society in the workplace has a positive impact on business.

The Company will not practice nor support conscious discrimination in any form.

The Company does not bias employment away from applicants belonging to disadvantaged

sections of society if such applicants possess competitive skills and job credentials.

The Company's selection of business partners is not based on any considerations other than

normal business parameters. In case of equal business offers, the Company will select a business

partner belonging to a socially disadvantaged section of society.

This Code of Conduct for Affirmative Action will be put up on the company web-site to

encourage applications from socially disadvantaged sections of society.

The Company makes all efforts for upskilling and continual training of all its employees in order

to enhance their capabilities and competitive skills. No discrimination of any type will be shown

in this process.

The Company may have a partnership programme with educational institution/s to support and

aid students from socially disadvantaged sections of society.

The Company will maintain records of Affirmative Action.

The Company has nominated Mr. Amrut Kumar Rath, Vice President (HR), to oversee and

promote the Affirmative Action policies and programmes. He will be accountable to the

Chairman.

The Company will make available its learning and experiences as a good corporate citizen in

Affirmative Action to other companies desiring to incorporate such policies in their own

business.

RAHUL BAJAJ

Chairman

BSE: 532977 | NSE: BAJAJ-AUTO | ISIN: INE917I01010 

Market Cap: [Rs.Cr.] 50,828 | Face Value: [Rs.] 10

Industry: Automobiles - Scooters And 3 - Wheelers

 Discuss this stock

Company Profile

Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India. The

company is well known for their R&D, product development, process engineering and low-

cost manufacturing skills. The company is the largest exported of two and three-wheelers in

the country with exports forming 18% of its total sales. The company has two subsidiaries,

namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The company was

incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd (the

holding company) with the name Bajaj Investment & Holding Ltd. The company received the

certificate of commencement of business on May 7, 2007. The holding company operated in

the segments, such as automotive, insurance and investment, and others. Considering the

growth opportunities in the auto, wind-energy, insurance and finance sectors, the holding

company de-merged their activities into three separate entities, each of which can focus on

their core businesses and strengthen competencies. The auto business of the holding company

along with all assets and liabilities pertaining thereto including investments in PT Bajaj Auto

Indonesia and in a few vendor companies transferred to Bajaj Investment & Holding Ltd. In

addition a total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj

Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd

were renamed as Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of

business on March 31, 2007. In April 9, 2007, the company inaugurated their green field plant

at Pantnagar in Uttarakhand. In the first year of operations, the plant produced over 275,000

vehicles. The company's vehicle assembly plant at Akurdi was shut down from September 3,

2007 due to higher cost of production. In November 2007, Bajaj Auto International Holdings

BV, a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power Sports

AG of Austria, Europe's second largest sport motorcycle manufacturer for Rs 345 crore.

During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler

Direct Injected auto rickshaw. The Chakan plant completed the cumulative production of over

2 million Pulsar. During the year 2009-10, the company expanded the production capacity of

Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000 Nos. The company launched

Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and Discover DTS-si in the

market. During the year 2010-11, the company expanded the production capacity of

Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000 Nos. The company launched

Avenger 220 DTS-i, KTM Duke 125, Discover 150 and Discover 125 in the market. The

company plans to maintain the capacity of two and three-wheelers at the current level of

5,040,000 numbers per annum during the year ending 31 March 2012. The 4 wheel vehicle

development work is under progress and commercial launch of the first product from this

platform is scheduled for 2012.

Bajaj Auto Limited is an Indian motorised vehicle-producing company. Bajaj Auto is a part

of Bajaj Group. It was founded by Jamnalal Bajaj atRajasthan in the 1930s. It is based

in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in

Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto

makes and exports automobiles, scooters, motorcycles and auto rickshaws.

Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in

India.[2]

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946.[3] It features at 1639 in

Forbes 2011 list.

The company has changed its image from a scooter manufacturer to a two-wheeler manufacturer.

Its product range encompasses scooterettes, scooters and motorcycles. Its growth has come in the

last four years after successful introduction of models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth around US$3.4 billion.[4]

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation

Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it

obtained a license from the government of India to manufacture two- and three-wheelers and it

went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it sold 100,000 vehicles

in a financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it sold

500,000 vehicles in a financial year. In 1995, it rolled out its ten millionth vehicle and produced

and sold one million vehicles in a year.

According to the authors of Globality: Competing with Everyone from Everywhere for

Everything, Bajaj has operations in 50 countries by creating a line of bikes targeted to the

preferences of entry-level buyers.[5]

Economic times

Management

Name Designation

Abraham Joseph Chief Technology Officer

Amrut Rath Vice President (Human Resources)

C P Tripathi Vice President (CSR)

D S Mehta Director

Eric Vas President (Retail Finance)

J N Godrej Director

J Sridhar Company Secretary

J Sridhar Secretary

K Srinivas President (Motorcycle Business)

Kantikumar R Podar Director

Kevin D’sa President (Finance)

Madhur Bajaj Vice Chairman

Manish Kejriwal Director

Nanoo Pamnani Director

Naresh Chandra Director

Niraj Bajaj Director

P Murari Director

Pradeep Shrivastava Chief Operating Officer

R C Maheshwari President (Commercial Vehicle Business)

Rahul Bajaj Chairman

Rajiv Bajaj CEO

Rajiv Bajaj Managing Director

Rakesh Sharma President (International Business)

S H Khan Director

S Ravikumar Sr. VP (Business Development & Assurance)

Sanjiv Bajaj Non Executive Director

Shekhar Bajaj Director

Suman Kirloskar Director

Registered Office & Factory

Mumbai-Pune Road,

Akurdi

City:Pune

State:Maharashtra

Pincode:411035

Email ID:[email protected]

Web Url:http://www.bajajauto.com

Factory/plant

Chakan Industrial Area,

Chakan

City:Pune

State:Maharashtra

Pincode:410501

Bajaj Nagar, 

Waluj

City:Aurangabad

State:Maharashtra

Pincode:431136

MIDC, Plot No A1, 

Mahalunge Village,

Chakan

City:Pune District

State:Maharashtra

Pincode:410501

Plot No.2, 

Sector 10,

IIE Pantnagar

City:Udham Singh Nagar Di

State:Uttaranchal

Pincode:263531

Corporate Office

Bajaj Bhavan, II Floor,

226, Nariman Point,

City:Mumbai

State:Maharashtra

Pincode:400021

Company History - Bajaj Auto Ltd.

2010

- Bajaj Auto launched a 135 cc Pulsar, priced at Rs 51,000, pushing the Pulsar brand into the

mass segment. - Bajaj Auto has given the Bonus in the Ratio of 1:1

2011

-Bajaj Auto - Bajaj records its best year ever

-Bajaj Auto ties-up with SBI for inventory finance to dealers

2012

-Bajaj Auto has tied up with Japan’s Kawasaki in Indonesia

-Bajaj Auto - Board recommends Dividend of Rs. 45 per share (450%)

Bajaj Auto is a $2.3 billion company founded in 1926. It is world?óÔé¼Ôäós fourth largest two-

and three-wheeler manufacturer. Bajaj Auto has three plants in all, two at Waluj and Chakan in

Maharashtra and one plant at Pant Nagar in Uttaranchal.

The company is into manufacturing of motorcycles, scooters and three-wheelers. In India, Bajaj

Auto has a distribution network of 485 dealers and over 1,600 authorised services centres. It has

171 exclusive dealers for the three-wheeler segment .It has total 3750 rural outlets in rural areas.

The company has opened 11 retail stores for bikes across the country, exclusive for high-end and

performance bikes. It has opened these stores under the name ?óÔé¼?ôBajaj Probiking?óÔé¼?Ø

in cities like Pune, Nashik, Ahmedabad, Chennai, Hyderabad, Kolkata, Navi Mumbai,

Chandigarh, New Delhi, Faridabad and Mangalore.

The Bajaj brand is well-known across several countries in Latin America, Africa, Middle East,

South and South East Asia. It has a distribution network in 50 countries with a dominant

presence in Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt.

It has technical tie up with Kawasaki Heavy Industries of Japan to manufacture latest models in

the two-wheeler space.

Bajaj Auto has launched brands like Boxer, Caliber, Wind125, Pulsar and many more. It has also

launched India's first real cruiser bike, Kawasaki Bajaj Eliminator.

Bajaj Auto's has in all three plants, two at Waluj and Chakan in Maharashtra and one plant at

Pant Nagar in Uttranchal, western India.

Waluj - Bajaj range of motorcycles and three-wheelers

Chakan - Bajaj range of motorcycles

Pant Nagar - Bajaj range of motorcycles

Achievement

1945- On November 29 Bajaj Auto came into existence as Bachraj Trading Corporation

Private Limited.

1948- The company commenced sales in India by importing two- and three-wheelers.

1959- Bajaj Auto obtained the licence from the Government of India to manufacture two- and

three-wheelers.

1960- The company became a public limited company and conducted Bhoomi Poojan of the

Akurdi Plant.

1970- Bajaj Auto rolled out its 100,000th vehicle.

1971- The company introduced its three-wheeler goods carrier.

1972- The company introduced Bajaj Chetak.

1975- Bajaj Auto & Maharashtra Scooters entered into a joint venture.

1976- The company introduced Bajaj Super.

1977- Bajaj Auto introduced rear engine autorickshaw and achieved production and sales of

100,000 vehicles in a single financial year.

1981- Bajaj Auto launched Bajaj M-50.

1984- On January 19, the foundation stone laid for the new plant at Waluj, Aurangabad.

1985- On November 5, the Waluj plant inaugurated by the erstwhile President of India, Giani

Zail Singh. The company commenced production at Waluj, Aurangabad in a record time of 16

months.

1986- The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles were introduced. The

company produced and sold 500,000 vehicles in a single financial year.

1990- The Bajaj Sunny was introduced.

1991- The company introduced Kawasaki Bajaj 4S Champion.

1994- It launched Bajaj Classic.

1995- On November 29, Bajaj Auto turned into a 50-year old company. It signed agreements

with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo

R&D for ungeared scooter and moped development. The Bajaj Super Excel is introduced

while Bajaj celebrated its ten millionth vehicle. The same year one million vehicles were

produced and sold by company in that financial year.

1997- The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.

1998- The company commenced production at Chakan plant. It rolled out Kawasaki Bajaj

Caliber from its Waluj plant. Bajaj Auto launched Legend, India's first four-stroke scooter

from Akurdi plant. The same year Spirit was launched.

1999- Caliber motorcycle notched up 100,000 sales in record time of 12 months.

2000- The company launched Bajaj Saffire.

2001- Bajaj Auto launched its latest offering in the premium bike segment 'Pulsar'. The same

year Eliminator was launched.

2003- Bajaj Pulsar DTS-i was launched. The company sold 107,115 motorcycles in a month.

The company launched Bajaj Wind 125, The World Bike in India. It launched its Caliber115

'Hoodibabaa!' in the executive motorcycle segment.

2004- Bajaj Discover DTS-I, new Bajaj Chetak 4-stroke with wonder gear and Bajaj CT100

were launched. Bajaj unveiled new brand identity, new symbol, logo and brandline.

2005- Bajaj Discover, Bajaj Avenger DTS-I and Bajaj Wave DTS-I were introduced.

2006- Bajaj Platina was launched.

2007- RE GDi autorickshaw, Bajaj XCD 125 DTS-Si, Bajaj Pulsar 220 DTS-Fi, 200 cc Pulsar

DTS-I and Bajaj Kristal DTS-i were launched. The company also underwent through

revamping of its organisational structure.

2008- Bajaj Platina 125 DTS-Si was launched.

2009- Bajaj Pulsar 150 & 180 upgrade and Bajaj XCD 135 DTS-Si were launched

2011- April, Bajaj Records its best year ever of 2010.

Awards

Bajaj Auto was awarded the NDTV Profit Business Leadership Award 2010 at the hands of

the Hon'ble Finance Minister Shri Pranab Mukherjee on 1st September 2010.

Bajaj Auto?óÔé¼Ôäós Bajaj Pulsar DTS-Fi won bike of the year in 2007 by CNBC-TV18

Autocar Auto Awards.

Bajaj Platina 100 cc won bike of the year 2007 by NDTV Profit Bike India.

Bajaj Auto?óÔé¼Ôäós Chakan Plant won Super Platinum Award For manufacturing

Excellence in 2006-07 by Frost and Sullivan.

Bajaj CT 100 bagged Motorcycle Total Customer Satisfaction Study in 2005 by TNS

Automotive.

HISTORY : 

HISTORY The company was the world's fourth largest manufacturer of two-wheelers, behind

Japan's Honda, Suzuki, and Kawasaki Bajaj Auto ltd is the flagship company of the Bajaj group.

Founded in 1926 by Jamnalal Bajaj, founder of the group. The present Chairman of the group,

Rahul Bajaj, took charge of the business in 1965 Bajaj entered into a strategic tie-up with

Kawasaki in late 1990s to enhance its product line and knowledge up-gradation By 1997, Bajaj

faced tough competition in the domestic market and its market share stood at 40.5%. Under the

leadership of Rahul Bajaj, the turnover of Bajaj Auto has gone up from Rs.72 million to Rs.46.16

billion

MISSION AND VISION STATEMENT : 

MISSION AND VISION STATEMENT VISION To attain World Class Excellency by

demonstrating Value added Products to customers MISSION Focus on value based

manufacturing Continual Improvement Total elimination of wastes Pollution free & safe

environment OBJECTIVE Bajaj Limited is to cater the market needs of transportation by

providing 2 wheeler and 3 wheeler vehicles. BAL has been producing the catalogue products to

cater to the changing market requirements. Based on the customer feedback, improvements are

being made continuously in the existing products. GOAL To catapult Bajaj Auto as the country‘s

largest automobile company

THE FALL OF AN ICON : 

THE FALL OF AN ICON “HAMARA BAJAJ” Ad campaign helped Bajaj position CHETAK:

“A geared model-scooter occupying near iconic status”. In December 2009, BAL announced that

it had stopped production of Chetak. With this announcement, BAL closed a major chapter in its

history. Mr.Rajiv said that it was a history he would like to forget. His company has lived too

long on nostalgia... holding on to anything from the past is a sign of weakness

Slide 6: 

"Like Volkswagen Beetle, the product (Bajaj Chetak) had lost its relevance." "We believe it is

not good enough to be better, it is important to be distinct.” This Lead to the strategy of…………

DISTINCTLY AHEAD

: 

Internal Factors - Strengths & Weaknesses : 

Internal Factors - Strengths & Weaknesses Strengths: Highly experienced management. Product

design and development capabilities. Extensive R & D focus. Widespread distribution network.

High performance products across all categories. Great financial support network (For financing

the automobile) High economies of scale.

Slide 10: 

Weaknesses: Hasn't employed the excess cash for long. Still has no established brand to match

Hero Honda's Splendor in commuter segment. Not a global player in spite of huge volumes. Not

a globally recognizable brand (unlike the partner Kawasaki)

Slide 11: 

Opportunities The growing gearless trendy scooters and scooterette market. Can use the existing

R&D capabilities for new models. Can invest and grow the life style segments. Double-digit

growth in two-wheeler market. Untapped market above 180 cc in motorcycles. More maturity

and movement towards higher-end motorcycles

Slide 12: 

Threats The competition catches- up any new innovation in no time. Threat of cheap imported

motorcycles from China. Tough competition faced by foreign as well as domestic players.

Two Wheeler Industry: An Overview : 

Two Wheeler Industry: An Overview

Market Segmentation : 

Market Segmentation The high performance segment The 125 cc segment The 100 cc segment

The Industry Analysis - Five Forces Analysis : 

The Industry Analysis - Five Forces Analysis Entry Barriers: Entry barriers are high. The market

runs on high economies of scale . The need for technical expertise is high. Owning a strong

distribution network is important and is very costly. Supplier Bargaining Power: Suppliers of

auto components are fragmented and are extremely critical for this industry since most of the

component work is outsourced. Proper supply chain management is a costly yet critical need.

Slide 17: 

Buyer's Bargaining Power: Buyers in automobile market have more choice to choose from and

the increasing competition is driving the bargaining power of customers uphill. With more

models to choose from in almost all categories, the market forces have empowered the buyers to

a large extent.  Industry Rivalry: The industry rivalry is extremely high with any product being

matched in a few months by competitor. This instinct of the industry is primarily driven by the

technical capabilities acquired over years of gestation under the technical collaboration with

international players.

Slide 18: 

Substitutes:There is no perfect substitute to this industry. Also, if there is any substitute to a two-

wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly

compete or come in consideration while selecting a two-wheeler, cycles do never even compete

with the low entry level moped for even this choice comes at a comparatively higher economic

potential.

CORE COMPETENCIES : 

CORE COMPETENCIES Bajaj Auto is one of the oldest and the second largest two wheeler

manufacutrer in India. Mr Bajaj said that any company, which wants to survive, must have

quality and service orientation. With the introduction of DTS-i and DTS-Fi technology, Bajaj

Auto Limited has led the way in pioneering technology along with style. The Profitability

Pyramid in Exhibit 4 shows that the margin is very low in the sub-125cc segment but volumes

are high. BAL wants to shift users from 100, 115cc segment to 125cc and higher

: 

Volume Profit Margin

SUPPLY CHAIN MANAGEMENT : 

SUPPLY CHAIN MANAGEMENT Vendors Bajaj Auto has a consolidated base of 180 vendors

supplying components to all Bajaj Auto‘s plants. A large number of vendors are located either

near Pune or Aurangabad. Around 60% by value of Bajaj vehicle is outsourced. Virtually no

components are imported & 70% of Bajaj Auto‘s requirements are sourced from within the state

of Maharashtra Bajaj Auto has also begun actively assisting its suppliers in finalizing joint

ventures with counterparts in Japan, Italy, Taiwan & Spain.

: 

Key suppliers: Bajaj auto has approximately 198 suppliers for their raw materials.Some of the

key suppliers are:-JBM -Frames MRF & Dunlop – tires Minda - Locks & ignition system

Reinder – headlamps & lights Endurance – brakes, clutch & Cast wheel Varroc – Plastic parts &

Digital Meter Max auto components – ignition system and switches Silco cable – wires and

cables Makino industry – Brake shoes . Brake lining, clutch center Dealers Bajaj Auto has a

network of 422 dealers and over 1,300 authorized service centers The company plans to increase

the number of dealers to 500 by this financial year During the financial year 2007-08, the

company extended BASS (Bajaj Auto Service Standard) to standardize the workshops of 250

dealers & 50 authorized service centers.

Manufacturing locations : 

Manufacturing locations Akurdi, Pune This is one of the oldest plant of bajaj auto ltd with

production capacity of 0.6 million vehicles/ year. The plant has been closed in order to equip for

four wheeler production Bajaj Nagar, Waluj Aurangabad This is second plant with production

capacity of 0.86 million/ year. Products manufactured here are Kristal, XCD and platina and

commerial GC series Chakan Industrial Area, Chakan , Pune This is the biggest plant of bajaj

auto Production Capacity of 1.2 million/ year . Product manufactured here are pulsar and avenger

and commercial Ge series Pantnagar , Uttarakhand The most advanced plant of bajaj auto . It has

Capacity of 0.9 million vehicles per year , product manufactured here are platina and XCD.

GLOBAL BAJAJ : 

GLOBAL BAJAJ Bajaj is present in over 50 countries all over the globe Dominant presence in

Africa, Latin America and South Asia with increasing market share every year 891,002 units

exported in 2009-10, an increase of over 15 % over the previous year Total motorcycle exports

of 726,115 in 2009-10, growth of 15% over 2008-09 Largest exporter of three wheeled

commercial vehicles in the world: 164,887 units exported in 2009-10, a rise of 19% over 2008-

09

Recent News on Bajaj Auto : 

Recent News on Bajaj Auto Bajaj-Renault-Nissan to drive small car (ULC) Bajaj Auto Ltd has

announced that the company may launch a small car in the year 2012 in India. The Discover has

now been positioned to fulfill the former need in a segment where Hero Honda reigns supreme

while the Pulsar has established itself in the sporty slot, with monthly sales of over 40,000 units.

: 

THANKS

The Company

Bajaj Auto is the flagship of the Bajaj Group of Companies. Bajaj is currently India's largest

two- and three-wheeler manufacturer and one of the biggest in the world. Bajaj has long left

behind its annual turnover of Rs. 72 million (1968), to currently register an impressive figure of

Rs. 81.06 billion.

Current Situation & Current Performance

BAL is currently outperforming the industry growth rate in two-wheeler segment with 32%

growth in year 2004-05 v/s industry growth of 19%.

Market share in Motorcycles is improving with every passing year. It has also increased from

28% in 2004-05 to 31% in 2005-06.

Annual turnover for the year 2005-06 is Rs. 81.06 billion v/s Rs. 63.23 billion a year before - an

increase of 28% which is very healthy.

BAL has significant presence in all the three basic segments - Price Segment, Value Segment

and Performance Segment - and has been showing increased sales in all the segments over years.

Besides this, BAL is a market leader in two-wheeler exports and it consists a great chunk of there

overall revenues. Currently, BAL is selling over 1 lac motorcycles annually in Sri Lanka, further,

they are commanding 50% market share in Central America.

Profile Change in Indian Two-Wheeler Industry

The demand shift from scooters to motorcycles in the 1990s was without parallel in any

comparable product category in India. This was mainly attributed to the change in customers'

preference towards fuel-efficient and aesthetically appealing models, which scooter

manufacturers failed to provide. The delayed launch of new, advanced scooter models, fear of

four-stroke scooters being prone to increased skidding risks and vibrations, and the difficulty of

maintenance also contributed to this shift.

Interestingly, the growth in the motorcycle segment was mainly driven by the demand from rural

and semi-urban consumers.

An estimated 60% of the demand for motorcycles came from rural and semi-urban customers.

The rise in their disposable incomes on account of good monsoons in the 1990s provided the

normally conservative rural and semi-urban customers with extra money that induced them to

experiment with new, innovative products.

Shift from Scooter to Motorcycle

Advanced technology, larger wheelbase, higher ground clearance and the ability to ride on bad

roads with less effort and less danger of skidding and decreased maintenance cost were the other

factors that encouraged customers to choose motorbikes over other two-wheelers.

The Industry Analysis - Five Forces Analysis

External Environment

Industry: Automobiles: Two Wheelers

Segments: Presence in all segments

Entry Barriers:

Entry barriers are high.

The market runs on high economies of scale and on high economies of scope.

The need for technical expertise is high.

Owning a strong distribution network is important and is very costly.

All these make the barrier high enough to be a deterrent for new entrants.

Supplier Bargaining Power:

Suppliers of auto components are fragmented and are extremely critical for this industry since

most of the component work is outsourced. Proper supply chain management is a costly yet

critical need.

Buyer's Bargaining Power:

Buyers in automobile market have more choice to choose from and the increasing competition is

driving the bargaining power of customers uphill. With more models to choose from in almost all

categories, the market forces have empowered the buyers to a large extent.

Industry Rivalry:

The industry rivalry is extremely high with any product being matched in a few months by

competitor. This instinct of the industry is primarily driven by the technical capabilities acquired

over years of gestation under the technical collaboration with international players.

Substitutes:

There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler,

Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or

come in consideration while selecting a two-wheeler, cycles do never even compete with the low

entry level moped for even this choice comes at a comparatively higher economic potential.

Summarizing the industry analysis, it can be said that the two-wheeler market is attractive as it

scores well on three out of five categories.

Key Earnings Drivers

Below are the key factors, which strongly affect the auto industry: -

Government policy impact on petrol prices: Petrol prices determine the running cost of

two/three wheelers expressed in Rupees per kilometer.

Petrol prices are the highest in India as GOI subsidizes kerosene and diesel.

But with the recent change in GOI policy to reduce the subsidy, the prices of petrol will remain

constant at the current prices. This will have a positive effect on purchases of two/three wheelers.

Improvement in disposable income: With the increase in salary levels, due to entry of

multinationals following liberalization process and fifth pay commission, the disposable income

has improved exponentially over the years. This will have multiplier effect on demand for

consumer durables including two-wheelers.

Changes in prices of second-hand cars: The second hand car prices of small cars have come

down sharply in the recent past. This will shift the demand from higher-end two-wheelers to cars

and affect the demand for two-wheelers negatively. A further drop in second-hand car prices will

lead to pressure on the two-wheeler majors who plan to release higher-end scooters and

motorcycles.

Implementation of mass transport system: Many states have planned to implement mass

transport systems in state capitals in the future. This will have negative impact on demand for

two-wheelers in the long run. But taking into account the delays involved in implementation of

such large infrastructure projects the demand to be affected only five to seven years down the

line.

Availability of credit for vehicle purchase: The availability and cost of finance affects the

demand for two- and three-wheelers as the trend for increased credit purchases for consumer

durables have increased over the years. Therefore, any change with respect to any of these two

parameters as a result of change in RBI policy has to be closely watched to assess the demand for

two- and three-wheelers.

Internal Factors - Strengths & Weaknesses

SWOT Analysis

Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths,

weaknesses, threats and opportunities available.

Strengths:

Highly experienced management.

Product design and development capabilities.

Extensive R & D focus.

Widespread distribution network.

High performance products across all categories.

High export to domestic sales ratio.

Great financial support network (For financing the automobile)

High economies of scale.

High economies of scope.

Weaknesses:

Hasn't employed the excess cash for long.

Still has no established brand to match Hero Honda's Splendor in commuter segment.

Not a global player in spite of huge volumes.

Not a globally recognizable brand (unlike the JV partner Kawasaki)

Threats:

The competition catches-up any new innovation in no time.

Threat of cheap imported motorcycles from China.

Margins getting squeezed from both the directions (Price as well as Cost)

TATA Ace is a serious competition for the three-wheeler cargo segment.

Opportunities:

Double-digit growth in two-wheeler market.

Untapped market above 180 cc in motorcycles.

More maturity and movement towards higher-end motorcycles.

The growing gearless trendy scooters and scooterette market.

Growing world demand for entry-level motorcycles especially in emerging markets.

The Inevitable Change

Bajaj on internal analysis found that it lacked - 

1. The technical expertise to deliver competitive goods.

2. The design know-how.

3. And the immediate inability to support the onslaught of competitors.

All these forced Bajaj to look for an international partner who could bring in technology and also

offer some basic platforms to be manufactured and marketed in India. Kawasaki of Japan is a

world-renowned manufacturer of high performance bikes. Bajaj entered into a strategic tie-up

with Kawasaki in late 1990s to enhance its product line and knowledge up-gradation to support

long-term strategies.

This served the purpose of sustaining the market competition for a while. From 1996 to 2000,

Bajaj invested hugely in infrastructure while simultaneously developing product design and

innovation capabilities, which is the prime reason behind the energetic Bajaj of 21st century.

Bajaj introduced a slew of products right from entry-level motorcycle to the high premium

segment right from 2001 onwards, and since then its raining success all the way for Bajaj.

Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when the largest

manufacturer grew at just 6%. This stands a testimony to the various important strategic

decisions over the past decade.

Marketing Strategies

Tows Matrix for BAL

The focus of BAL off late has been on providing the best of the class models at competitive

prices. Most of the Bajaj models come loaded with the latest features within the price band

acceptable by the market. BAL has been the pioneer in stretching competition into providing

latest features in the price segment by updating the low price bikes with the latest features like

disk-brakes, anti-skid technology and dual suspension, etc.

BAL adopted different marketing strategies for different models, few of them are discussed

below: -

Kawasaki 4S - First attempt by bajaj to make a mark in the motorcycle segment. The target

customer was the father in the family but the target audience of the commercial was the son in

the family. The time at which Kawasaki 4S was launched Hero Honda was the market leader in

fuel-efficient bikes and Yamaha in the performance bikes.

The commercial of Kawasaki 4S had the punch line "Kyun Hero" means "now what hero" which

reflected the aggressiveness in the marketing front by the company.

Boxer - It took the reins from where the Kawasaki 4S left. Target was the rural population and

the price sensitive customer. Boxer marketed as a value for money bike with great mileage.

Larger wheelbase, high ground clearance and high mileage were the selling factors and it was in

direct competition to Hero Honda Dawn and Suzuki MX100.

Caliber - The focus for the Caliber 115 was youth. And though Bajaj made the bike look bigger

and feel more powerful than its predecessor (characteristics that will attract the average, 25-plus,

executive segment bike buyer), its approach towards advertising is even more radically different

this time around. Bajaj gave the mandate for the ad campaign to Lowe, picking them from the

clique of three agencies that do promos for the company (the other two being Leo Burnett and

O&M). Going by the initial market response, the campaign was clearly a hit in the 5-10 years

age bracket. So, the teaser campaign and the emphasis on the Caliber 115 being a `Hoodibabaa'

bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the

same time.

Pulsar - Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc

plus segment. The campaign beared innovative punch line of "Definitely Male" positioning

Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers.

The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar

with the 180 cc model. The model was a great success and has already crossed 1 million mark in

sales.

Discover - The same DTSI technology of Pulsar extended to 125 cc Discover was a great

success. With this, Bajaj could realize its success riding on the back of technological innovation

rather than the joint venture way followed by competitors to gain market share.

Strategies & Implementation

FMCG Business Model

BAL now is taking a leaf out of the FMCG business model to take the company to greater

heights.

Bajaj has kicked off a project to completely restructure the company's retail network and create

multiple sales channels.

Over the next few months, the company will set-up separate sales channels for every segment of

its business and consumers. Bajaj Auto's entire product portfolio, from the entry-level to the

premium, is being sold by the same dealers. The restructuring will involve separate dealer

networks catering to the urban and rural markets as well as its three-wheeler and premium bikes

segments.

Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. The needs

of financing, selling, distribution and even after-sales service are completely different in the rural

areas and do not makes sense for city dealers to control this. The company also plans to set-up

exclusive dealerships for its three-wheeler products instead of having them sold through an

estimated 300 of its existing dealers.

Other Strategic Issues

Cash is strength: Bajaj Auto has been sitting on a cash pile for over five years now. Over the

next couple of years, competition in the two-wheeler market is set to intensify. TVS Motors and

Hero Honda are on a product expansion binge. To fight this battle and retain its hard-earned

market share in the motorcycle segment, Bajaj Auto will need its cash muscle. A look at its own

story over the past five years provides valuable insight.

Delisting worry: What is worrying is that there is an idea to delist the investment company (also

an indirect indication that it would be listed initially). This would be closing the valve of

equitable ownership distribution.

There is a hint of a buyback of shares of the investment company as this is the only way it can be

delisted. The company would not be short of cash to put through such a buyback.

Factors such as low valuation, low trading interest and the need to provide shareholders may be

cited as plausible reasons for the buyback.

Stake for Kawasaki: Bajaj Auto's attempt to vest the surplus cash in a separate company may

be a prelude to offering a stake to Kawasaki of Japan in the equity of the automobile company.

The latter has been playing an increasingly active role in Bajaj's recent models, and its brand

name is also more visible in Bajaj bikes than in the past.

Better value proposition: Shareholder interests may be better served if the cash is retained to

pursue growth in a tough market. This would also obviate the need to fork-out fancy sums as

stamp duty to the government for the de-merger. A combination of a large one-time dividend and

a regular buyback program through the tender route may offer better value. A strategic stake for

Kawasaki would only positively influence the stock's valuation.

Strategies for the Overseas Markets

Bajaj Auto looks at external markets primarily with three strategies: -

1) A market where all BAL need to do is distribute through CKD or CBU routes.

2) Markets where BAL need to create new products.

3) Markets where BAL need to enter with existing products and probably with a good distributor

or a production facility or a joint venture.

Earlier, most of the products that Bajaj exported were scooters and some motorcycles. However,

in its target markets, like in India, the shift was towards motorcycles. With the expansion in

Bajaj's own range to almost five-six platforms of motorcycles, it had a better offering to export,

also the reason for its stronger showing. For the last fiscal, 60 per cent of its exports were two-

wheelers and the rest three-wheelers. Of the two-wheeler exports, close to 90 per cent were

motorcycles.

Bajaj has identified certain key markets, which hold potential. Its first overseas office established

at the Jebel Ali free trade zone has been the focal point for exports to middle Africa and the

Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.

The other market, which would be a focus area, is South America, where the company feels it is

fairly well represented in most countries, except in Brazil, the largest market. The company

recently participated in a large auto exhibition in Brazil and found good consumer acceptance to

products like Pulsar and Wind 125.

The other focus area is the ASEAN nations, which constitute the third biggest consumer of two-

wheelers. The biggest among them is Indonesia, where Bajaj distributors are looking to introduce

eco-friendly four-stroke auto rickshaws. But two-wheeler market requires great deal of effort

from BAL. Everybody is there with Honda leading the show.

There's Suzuki, Kawasaki and some Korean and Chinese models. BAL should look at the right

product mix for two-wheelers. Bajaj's Pulsar model has taken off well there. It also wants to

develop a new step-through model for the Indonesian market, but for now it will create a base

there with its motorcycle models.

Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of its

technical partner, Kawasaki. The two signed an MoU in February. Kawasaki, a large multi-

product conglomerate, only makes high-end bikes and does not have sub-200cc models.

Kawasaki is marketing the new model, Wind 125, developed by both companies, in the

Philippines. The Bajaj-developed models, Caliber and Byk, which is a fuel-efficient bike, are

also being distributed by Kawasaki. This is a good beginning strategically for Kawasaki to

evince interest in Bajaj products for markets which can still buy less than 150 cc.

R&D

Bajaj Auto has a huge, extensive and very well-equipped Research and Development wing

geared to meet two critical organizational goals: development of exciting new products that

anticipate and meet emerging customer needs in India and abroad, and development of eco-

friendly automobile technologies.

While the manpower strength of the R&D represents a cross-section of in-depth design and

engineering expertise, the company has also been investing heavily in the latest, sophisticated

technologies to scale down product development lifecycles and enhance testing capabilities.

Bajaj Auto R&D also enjoys access to the specialized expertise of leading international design

and automobile engineering companies working in specific areas.

Based on their own brand of globalization, they have built their distribution network over 60

countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90 to

over 5% in Fiscal 1996-97.

The countries where their products have a large market are USA, Argentina, Colombia, Peru,

Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with 65%

of the scooter market, in Uruguay with 30% of the motorcycle market and in Bangladesh with

95% of the three-wheeler market.

Several new models are being developed specifically for global markets and with these the

company will progressively endeavor to establish its presence in Europe too.

The Future

Although the avalanche of motorcycles offered Indian consumers a wide variety of models to

choose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts,

technology enhancements and up-gradations and styling. Their margins came under pressure as

marketing costs escalated.

The companies were forced to reduce prices and offer discounts to survive the competition.

Moreover, analysts were skeptical about the segment's ability to maintain the growth rate in the

years to come. One of the major assumptions underlying the motorcycles rush was that if the

market was considerably large and was growing at a constant pace, there was room for a

profitable existence for all brands.

In 2001, there were over 30 motorcycle brands in the market. However, with the top five brands

accounting for more than 60% of the market, only 40% of the market was available for all other

new brands put together. Despite the launch of more vehicles, the survival prospects of many of

the individual brands were deemed to be rather bleak.

Further, the growth in the motorcycle segment was dependant on continuing favorable market

conditions. Analysts claimed that to sustain this growth rate, the segment would have to

completely cannibalize the market for scooters and a considerable part of the market for

scooterettes and mopeds.

Considering the fast growing scooterettes segment, with high demand from female customers,

followed by the moderately growing moped segment and the restructuring in the scooter segment

with major national and foreign players reinforcing their presence, it was unlikely that the entire

growth in the two-wheeler sector would be due to motorcycles.

Analysts also commented that as the two-wheeler industry had grown steadily for eight years,

stages in the product life cycle would apply to the field sooner, rather than later and the decline

stage would invariably come some day. There was little differentiation between the brands being

launched apart from styling as most companies had introduced their four-stroke vehicles.

With the failure of the joint ventures, the expected introduction of cheaper Chinese brands,

stringent emission norms and threat from major international players, the survival of indigenous

brands looked uncertain. Constrained with the ruling price levels in the market place, limited

infrastructure and lack of technological innovations when compared to their foreign counterparts,

whether the Indian companies would succeed in generating the kind of volumes needed to

sustain in the competitive motorcycle market, remains to be seen.

Recommendations

Focus on High Margin Products: Around 50% of the two-wheeler consumers buy high quality

products (products of executive and premium segment motorcycles). Margins on these products

are higher.

BAL should adopt a deliberate strategy of focusing on executive and premium segment

motorcycles and three-wheelers, and is reducing its dependence on lower-end of motorcycles and

scooters segment.

High margin products - Pulsar, Discover, Three-wheelers, Avenger.

Low margin products - Platina, Scooters, Mopeds.

Now with increasing competition in the economy segment and limited scope from cost saving

measures, it is believed this strategy of focusing on higher margin products would enable the

company in retaining its operating margins.

Below are other useful recommendations: -

Company should keep focusing on the fast growing motorcycle segment.

In view of the new threat posed by Honda Motors in the scooter segment, the company needs to

review its products line-up and launch new products to cater the changed demand.

The company needs to take a look at its ungeared scooters offerings and need to adapt to the

latest trends.

The company needs to tap the export market more efficiently as there is a huge potential to make

India as the world's two-wheelers production base. For this, it needs to look for joint ventures

abroad.

It needs to target the young age group more effectively as this group is extremely trend savvy.

The advertising should have a fresh look and the product should live up to the Gen-X's

expectations.

Concluded.

Bajaj's strong presence in over 50 countries truly exemplifies the term successful expansion.

Since the launch of the legendary Chetak scooter in 1973; Bajaj has been the most favourite two-

wheeler brand across the world. With the Boxer launch in 90's, the stylish Pulsar in 2001 and the

likes of Discover, Platina and many other great bikes, Bajaj has catered to every need in this

segment.

In the midst of 1972, Bajaj began exporting two-wheelers to Australia. And by 1973, the first

shipment of three wheelers arrived in Bangladesh. By 2000-01, Bajaj managed to export around

44,000 vehicles. Our exports were growing and that created a need of setting up representative

sales offices abroad. So in 2004, we set up sales offices in Africa, Sri Lanka and Middle East

followed by a subsidiary in Indonesia. Later in 2008, we opened another sales office in Mexico

in Latin America. And in the same year, a 15% increase was recorded with the export of 7,

26,115 two-wheelers.

Across the globe, Bajaj is known as the no. 1 three-wheeler company, with a very dominant

position in Sri Lanka, Egypt, Bangladesh and Peru.

Bajaj's market share is increasing constantly every year. The brand Bajaj is a market leader in

motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda

and Kenya. And we are proud that the love of our customers has made Boxer the no. 1 brand in

the whole of Africa.

But the export of one million vehicles in the year 2010 has put us foremost in the worldwide race

of success. Well, these achievements are definitely awe-inspiring. But for a company like Bajaj,

these are just goals, achievements are yet to come.

CSR Guiding Principles

The concept of Corporate Social Responsibility is relatively recent. But the philosophy of social

responsibility and commitment to give back to the society underlines the Bajaj way of

conducting its businesses for a number of years now. The wide spectrum of community

development endeavors undertaken by Bajaj Auto Ltd - embracing everything from health and

education to women empowerment and more - has touched, and changed, many lives. But the

real credit for positive change is always to those whom we have enabled on the path of

"Sustainable & Inclusive growth" & well being.

To Benefit Generations

We believe that majority of "expenditures" under CSR be converted to "investments in resource

creation" for use over generations. We try and identify sustainable projects which will benefit the

society over long periods.

Educate - For Self Reliance & Growth

To usher in a growth oriented society and thereby a very strong and prosperous nation - best way

is to educate each and every Indian.

Encourage - For Self Help

To guide and do hand holding for self help individually and collectively to create excellence for

self and for the team work.

Spread - Work Areas

We believe that activities should be spread to locations where we have our presence and hence

can effectively guide, monitor and implement specific projects.

Care - For those who need it most

Care for the section of the society, which is socially and economically at the lowest rung

irrespective of their religion or caste or language or colour.

Sustain - Natural Resources

We encourage balanced development and ensure least adverse impact on environment - "Growth

with Mother Nature's - blessings"

Our CSR Areas

Education

Health

Women Empowerment

Self Reliance

Rural Development

Environment & Natural Resources

BAJAJ TWO WHEELER MARKETING EXECUTIVE SUMMARY:

Bajaj Auto Limited (BAL) was recognized in 1945, firstly launching scooters and three wheelers

a centre in the Indian market. In 1991 it’s properties of the Indian government rule on foreign

imports, BAL’s marketing object the development of the Indian two wheeler business from

scooters to 2 stroke and 4 stroke bikes with a robust stress on BAL while studying its strategies.

Along with the analysis found that BAL moving into developing markets in instruction to

increase sales and found a global footmark. According to market report also comprises SWOT

study of BAL which will help it to express an actual marketing policy for the next five years. In

adding to SWOT analysis, Bajaj auto limited latest model Pulsar DTS-i 220cc,150 cc ,180cc &

135 cc and Discover DTS-i 135 cc & 100cc increased growth suddenly. It’s product

quality( maintenance, mileage &service ) better than any another Hero Honda, TVS motor

product .At present time ,Bajaj very good position in two wheeler industry because It’s changes

model half yearly, yearly. It’s also increase market share. Bajaj discover 100 makes new record –

over 10 lakh bike sold in just 15 months.

In 2010, Bajaj auto limited launch latest Bajaj Discover 150cc, pulsar 135cc, 220cc model

changes in two wheeler market. All the brand comparable with other two wheeler company that

it’s all brand were gave better average with new technic & cheaper price.

Table of Contents

COMPANY HISTORY:

'Inspiring Confidence,' the tagline, has constructed up confidence, complete pleasure

engineering, not only to national customers but also internationally. Recognized just eight

periods back in 1926 thru Jamnalal Bajaj, the company has been conferred with India's major

exporter of two-wheeler & three-wheeler. In 2004-05, produce & sales 196,710 units, a great 26

per cent jump over the previous year

In 2004-05, Bajaj Auto Ltd. sales have increased about 21 per cent which at most Rs 65.4 billion.

It’s record in the history of the company. The gross working profit positions at Rs. 9.3 billion,

over a record. The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return

on working capital is at an inspiring 80 per cent.

The company strength is product excellence, brilliance in engineering and design, and its

aptitude to pleasure the customers. In November 2004, the Pulsar introduced is continually

controlling the best segment of the motorcycle market, helping to maintain the market advantage.

Discover DTS-i, one more successful bike on Indian roads, is in the 'value' segment of the

motorcycle market.

It joins a high degree of power with petroleum competence of a 100cc motorcycle.

 The market turns on high economies of device and on high economies of choice.

 The requirement for technical expertise is high.

 Owning a strong supply network is important and is very costly.

 All these brand the fence high enough to be a warning for new candidates

OBJECTIVE:

Bajaj Limited is to deliver the market requirements of transportation by providing two- wheeler.

BAL has been manufacturing the list products to supply to the changing market requirements.

Founded on the customer feedback, improvements are being made continuously in the current

products. It’s wants to be a good market growth in Indian two wheeler Industry.

LITERATURE REVIEW:

‘Marketing is the management process that identifies, anticipates satisfies customer requirements

profitably.’ (The Chartered Institute of Marketing)

Marketing is a social & managerial process by which individual & groups obtain what they want

and need through creating ,offering and exchanging products of value with others, (kotler, 1991)

The marketing mix helps you define the marketing elements for successfully positioning your

market offer. One of the best known models is the Four Ps, which helps you define your

marketing options in terms of product, place, price and promotion. Use the model when you are

planning a new venture, or evaluating an existing offer, to optimize the impact with your target

market.

MARKETING MIX 4’PS MODEL

COMPANY

BAJAJ

HERO HONDA

TVS

MODEL

PULSER DTS-i

HUNK

APACHE

ENGINE

150cc,14.09ps@8000rpm

Torque 13.90Nm @ 6500 rpm

150cc,14.4ps@8500rpm,

Torque12.8N-m @ 6500 rpm

160cc 15.2@8501rpm Torque 13.1N-m@6001 rpm

PRICE

63000/-

60000/-

62900/-

PROMOTION & ADVERTISING

Earlier tagline ‘Defiantly Male’ but now it’s using tagline ‘Distinctly Ahead’. It inspires

confidence and sends message of Free Biking. Its association with stunt mania (MTV) helps at

targeting youth.

Hero Honda is world’s no 1 two wheeler sales company. Advertising by Sorav Ganguly & Hirtik

Roshan. Hero Honda annual STAR SCREEN AWARDS etc.

TVS Apache selected Bike of the Year in 2006.

Company give a free gifts like electric item, offer price on Diwali, New year any other occasion.

THE BOSTON CONSULTING GROUP (BCG) MATRIX:

[Type a quote from the document or the summary of an interesting point. You can position

the text box anywhere in the document. Use the Drawing Tools tab to change the

formatting of the pull quote text box.]

[Type a quote from the document or the summary of an interesting point. You can position

the text box anywhere in the document. Use the Drawing Tools tab to change the

formatting of the pull quote text box.]

The BCG Matrix

Star:

? ? ? ?

Question marks:

Pulsar 150 & 180cc

XCD 125 cc Discover Pulsar 200 & 220c Blade

High

Business Growth Rate

Invest

Cow:

Dogs:

Liquidate

Low

Platina CT-100

Avenger Kristal

Low

High

Relative position (Share Market)

SWOT ANALYSIS:

Strength:

Highly knowledgeable management

Competences of product design & development

Widespread R&D focus

Wide spread distribution network

High performance products across all classes

High export to national sales ratio

Great financial support network

Great economics of scope & scale

Weakness:

Hasn’t employed the extra cash for

long

Still has no recognized brand to match hero Honda’s splendor in customer segment

Not a global player in malice of enormous capacity

Not a internationally familiar brand (unlike the JV partner Kawasaki )

Threats:

The struggles catches–up new

innovation in no time

Threat inexpensive of important motorcycle from china

Margins getting embraced from both the directions (price as well as cost)

Tata Ace is a thoughtful struggle for the three- wheeler cargo segment

Pulsar 135 cc will good competitor to Hero Honda & other bike.

Opportunities:

Dual growth in two -wheeler market

Unused market above 180cc in motorcycle

More adulthood and movements towards higher-end motorcycles

The increasing gearless trendy scooter and scootte market

Increasing world demand for entry-level motorcycle particularly in emerging markets.

BAL is devoted to discouragement of pollution, continual development of environment

presentation and obedience with all environmental rule and regulations. They always trust in as

long as the customer 'value for money' and save a special eye upon excellence, security,

productivity, cost and distribution.

THE INVEITABLE CHANGE:

Bajaj on interior analysis found that it required -

1. The practical knowledge to deliver modest goods.

2. The design knowledge.

3. And the instant incapability to support the attack of competitors.

Bajaj to expression for an global partner who could transport in technology and also proposal

some basic stages to be factory-made and promoted in India. In Japan, Kawasaki is a world-

renowned producer of high presentation bikes. In 1990, Bajaj arrived into a planned tie-up with

Kawasaki to improve its product line and gen up-gradation to support long-term plans.

This helped the purpose of satisfying the market rivalry for a whereas. From 1996 to 2000, Bajaj

capitalized extremely in infrastructure though concurrently developing product design and

innovation competences, which is the prime reason behind the lively Bajaj of 21st century. After

2001, Bajaj introduced a swing of products right from entry-level motorbike to the best segment

right and since then it’s wet success all the technique for Bajaj.

Previous sector, Bajaj had inspiring performance increasing at a rate of 20%+ when the main

producer produced at just 6%. This stands a testament to the numerous significant strategic

choices over the previous period.

MARKET SEGMENTATION:

BRAND POSITION:

Bajaj Auto is a top company of Bajaj group. Bajaj Auto Limited (BAL) is presently India's

second largest & world’s fourth largest two-wheeler and three wheeler producer. The vital ability

of Bajaj Auto Ltd is its technology and invention. Both DTS-i (Digital Twin Spark Ignition) and

DTS-Fi (Digital Twin Spark Fuel Ignition) are technological advances by Bajaj. BAL is also a

innovator in product innovation having accessible technologies such as Exhaust TEC (Exhaust

Torque Expansion Chamber), LED tail lamps, LCD Display, SNS, Spare parts (Rear disc brakes,

tube less tyres), Black colour system etc.

Similarly, the company also learnt that deviation was another important part of its focus on

specialism, with the Discover obviously located for the customer section and the Pulsar as the

‘sporty' option. The features, so, had to be high-class for each product in terms of looks and trip

while protection profitability.

Since Bajaj Auto's point of view, the customer and sporty parts are the backbone of India's

motorbike market. And even while it has bikes to proposal from the KTM and Kawasaki firm,

these largely continue in the place category as off-road and on-road players understanding into

incomplete numbers.

MARKETING STRETEGIES:

The focus of BAL rotten twilight has been on as long as the best models at modest values .Most

of the Bajaj models come loaded with the modern landscapes within the price group suitable by

the market. BAL has been the innovator in widening competition into as long as newest features

in the price section by informing the low price bikes. The latest features like twin spark, disk-

brakes, anti-skid DTS-I technology and dual suspension, etc. who increase great growth in two

wheeler industry.

BAL accepted different promotion policies for different models, few of them are deliberated by

table:

Strategies

Model

Engine

Technology

Market

Kawasaki 4s champion

100cc

Bajaj first bike launched that time Hero Honda is a great market leader In fuel efficient bike &

Yamaha is performance bike

Boxer

100cc

AT/CT/AR three models come in market with good technology.

Target rural population & price delicate client. Boxer marketed as a worth for money bike a great

mileage. It was in straight struggle to Hero Honda Dawn and Suzuki MX100.

Pulsar

new150cc, 180cc,135 cc & 220cc, 200cc,

DTS-I (digital twin spark ignition), DTS-Fi, Exhaus TEC (Exhaust Torque Expansion Chamber),

Self-start

Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus

segment. all model was a great success and has already crossed 1 million marks in sales. Pulsar

bike achieve very good market growth day by day

Platina

100cc, 125cc

DTS-i. Self-start

Bajaj Platina is a leader in mileage & appearances in the 100 cc class The Platina 125cc bike has

a well-ordered expression along with a great rev-up and acceleration.

IMPLEMENTATION:

Although the avalanche of motorcycles offered Indian customers a wide variety of models to

select from, it also resulted in increased weight on the companies to essence on cost-cuts,

technology improvements and up-gradations and fashioning. Their margins came under weight

as marketing costs intensified.

The companies were compulsory to decrease prices and proposal reductions to live the

competition. Moreover, analysts were cynical about the segment's ability to uphold the

development rate in the years to come. One of the main expectations original the motorbikes rush

was that if the market was significantly large and was growing at a constant step, there was room

for a profitable being for all products.

In 2001, there were over 30 motorbike products in the market. Though, with the top five brands

accounting for more than 60% of the market, only 40% of the market was accessible for all other

new products put together. In spite of the launch of more vehicles, the endurance forecasts of

many of the individual brands were believed to be slightly unwelcoming.

Further, the development in the motorbike segment was dependant on on-going positive market

situations. Analysts requested that to withstand this growth rate, the section would have to totally

cannibalize the market for scooters and a significant part of the market for scooters and mopeds.

As the fast increasing scooters segment, with high demand from female clienteles, followed by

the temperately growing moped segment and the rearrangement in the scooter section thru major

national and foreign companies supporting their attendance, it was unlikely that the whole

growth in the two-wheeler subdivision would be due to motorbikes.

Forecasters also observed that as the two-wheeler manufacturing had grown gradually for eight

years, periods in the product life series would apply to the ground rather, rather than future and

the weakening stage would usually come sometime. There was little difference between the

products being launched separately from designing as most companies had presented their four-

stroke vehicles. The Indian companies would succeed in producing the kind of volumes wanted

to endure in the modest motorbike market, remainders to be understood.

RECOMMENDATION:

Focus on High Margin Products: About 50% of the two-wheeler customers buy high class

products (products of executive and best segment motorcycles). Limits on these products are

higher.

BAL should accept a thoughtful strategy of concentrating on executive and best section

motorbikes and three-wheelers, and is plummeting its essential on lower-end of motorbikes and

scooters section.

High margin products-Pulsar, Discover and Avenger. Low margin products - Platina, Scooters

and Mopeds.

Bajaj cumulative competition in the economy section and limited scope from cost saving events,

it is believed this strategy of concentrating on higher margin products would allow the company

in retentive its operating margins.

CONCIUSION:

It has been more than 50 years currently that bikes have been ruling the Indian automobile

segment. In 1955, the Indian government wanted durable and dependable motorbikes for its

Military and forces to patrol the rough border thoroughfares. The first lot of 350cc Bullet - the

wonderful motorbike in India of all times, from the Royal Enfield Company of UK were

conventional and collected at Chennai. The latest model launched new Pulsar 220cc, 135cc &

Discover 135cc, 100cc also increase better value in two wheeler markets. It’s effect on Bajaj

auto business. Rahul Bajaj chairman of Bajaj two wheeler. They change many models that

increase company growth. Company CEO S. Sridhar change Forman, mechanical, technical staff

& product quality to improve bike brand. Since then, bikes in India have been prosperous as

a two wheelers segment, and Indian bikes ahead on popularity all crossways the world.

Read more: http://www.ukessays.com/essays/marketing/bajaj-two-wheeler-marketing-

marketing-essay.php#ixzz2PLL4eenW

Bajaj Auto Limited

The global economy and the market are growing faster than ever. The current business situation

is in a state where they need to reshape their ideas constantly. The change has become so

inevitable that without it a company couldn't survive in this competitive world. Change is the

process of taking a company from current position (state) to a desired or expected position (state)

and at the same time dealing with the problems that arise in the process, then change is about the

management. (Gill, 2003). Change is something that cannot force upon, it is a gradual process of

transformation that can affect the entire structure. Change management is an organized,

methodical application of the knowledge, tools, and resources of change that provides

organizations with a key development to achieve their business strategy. But change

management is not a distinct discipline with rigid and clearly defined boundaries (Burnes, 2004).

Organisations may not get their desired outcome if the change management is not effective. With

effective management of change we can easily achieve a better turnover, expand the business,

reduce cost of sales, maximise profit and even retain the same employee satisfaction. There are

two angles in which a change can be viewed - one from the management who are implementing

it and another form the employees who undergo it. In the past, the affect of change agents on a

business organization was very small but as and when the business transactions started to happen

on global basis, the agents that could lead into organizational change also increased. The affect

of a change can be felt in global way just like the current financial crunch that is happening

around world.

Brief History of Bajaj Auto Limited

The Bajaj Group is one of the top 10 business organisations in India. The Bajaj Group has a wide

range of industries such as, Bajaj Auto Ltd, home appliances, lighting, iron and steel, insurance,

travel and finance. But the group's main focus is Bajaj Auto which is ranked as the world's fourth

largest two- and three- wheeler manufacturer and is well-known in over a dozen countries in

Europe, Latin America, the US and Asia.

Jamnalal Bajaj founded Bajaj Auto Ltd in the year 1926, which did mainly import and sell two or

three wheelers. In the year 1959, the company secured a license from the government of India to

manufacture two and three wheelers. From this license, the company started to grow and in the

same year, it went in collaboration with Piaggio to manufacture scooters and marketed under the

brand name Vespa. By the end of the 10 year agreement with Piaggio, the company started

manufacturing its own scooters under the brand name Chetak which pushed the Indian market to

top boom and stayed as market leaders in scooter industry for a long period in India.

The scooter made a strong brand image among people especially the middle class families who

longed to have their own transport which was economical, durable and easy to maintain which

was the key factor for their dominancy in market. The cost of motorcycles was 30% high when

compared with scooters, so common people prefer it. Another factor for the market dominancy

was the restriction for international brands in the Indian market. Hence the company faced no

much competition.

After the effect of globalisation when international organisation started to enter the Indian

market, the competition faced by Bajaj was severe. The international companies had invested a

lot in Research and developments and had better features and fuel efficiencies and this started to

trouble the Baja's rule over the Indian market. When the price gap between motorcycles and

scooters narrowed consumers started to shift to motorcycles because they were more able to

travel on a terrain and had much greater ground clearance. When banks started to give loans to

own vehicles it was a dream come true for most of the Indians and thus the consumer preference

shifted to motorcycles rather than scooters. To conclude the situation created because of the

company's lack of interest in R&D, the turn over market dominancy and overall market value of

the company starts declining constantly.

(Source: www.bajajauto.com)

Changing Scenario

In the early 1990s, the market saw a great recession in the Indian two wheeler sector; overall

sales of two-wheelers declined by 15% in 1991 and 8% in 1992. This period also saw a steep rise

in fuel prices, which resulted in consumers placing greater emphasis on fuel efficiency when

purchasing a new two wheeler. Fuel efficiency of scooters were comparatively less with

motorcycles. When banks started financing for buying new vehicles common people shifted to

motorcycles which can save a fortune in fuel.

Japanese companies like Honda motor co. ltd (Honda), Suzuki and Yamaha started their

operations in India through joint ventures with Indian companies like hero Cycles ltd, TVS,

Escorts, etc. All these joint ventures were in the motorcycle segment. The foreign firms came

with the latest technology and efficient production systems, which dramatically improved the

quality of motorcycles available in the Indian market. Soon the foreign companies started

introducing more new models with contemporary technology, styling and greater fuel efficiency.

Then, the entire Indian market witnessed a change that was not at all foreseen by the company.

The consumer preference shifted from scooters to motorcycles, which affected the company

drastically in a much big way. This was because the difference in the ratio of youngsters and

mature adults. In addition the motorcycles became cheaper, more fuel-efficient and was capable

to ride with ease in any terrain. The arch rivals, Hero Honda was the company the Bajaj had to

compete, but it was in vain as Bajaj had not once thought of modifying their scooters or thought

of bringing new motorcycles into market and ultimately Bajaj had to give up its throne of the

largest two wheeler company.

The model Bajaj was rolling out of the company was a geared scooter. In the year 2005-06 with

the entry of gearless scooters Bajaj lost its dominance over the Indian market to the gearless

scooter named Activa from Honda, which was more comfortable for old people as well as  

women and even men have started to use Activa for their short errands because of its ease of use.

Forces of Change

"Organisational change is triggered by performance falling below expectations or aspiration

levels" (Nilakant & Ramnarayan, 2006) or change is initiated by disconfirmation. Forces of

change can be two types: the external and the internal.

External Forces

Consumer preference

In the 1990s, the Indian two wheeler market witnessed a shift in consumer preferences.

License Raj

The private investment was extensively regulated by the government through licensing. All the

important business decisions like the entry of a firm into an industry, capacity expansion, choice

of product, capacity mix and the technology were controlled by the government in an attempt to

prevent concentration of economic power. This was referred as License Raj. Also there was a

change in emission norms.

Poor conditions of the road

The conditions were really bad at that time. The consumers need a vehicle with strong reliability

and fuel efficient.

Poor conditions of the transport system

The suppliers had a hard time for supplying materials. Also the growth was partly attributed to

the inefficient public transport systems in the country's towns and cities, which led to a greater

demand for personal transport.

Internal Forces

Company's inability to force the market and shift in the trend patterns

BAL had been slow in reading the demand pattern and how to cater to the changing consumer

tastes and preferences.

Company was not interested in R&D

It was believed that the dramatic shift happened because BAL did not pay sufficient attention to

design, research and development and consumer satisfaction.

No additional features

Motorcycles with better ground clearance, stronger suspensions, and larger wheel bases,

performed well on the village roads. Also the fuel economy was an added bonus

No other brand of scooters

      No young and fresh minds in the company's management

Change Models

The format and the procedure by which a change has been made in a particular scenario is

known as the change model. Change models are tools for driving change forces in an

organization. Managing the complex process of change mainly involves managing a set of

activities, in which each of the activity is crucial for the overall success of change. The change

process involves translating the need for change into a desire for change, and deciding who will

manage the change and creating a effective workable relationship.

Change Model applied in Bajaj Auto Ltd

Change Models provided by Kurt Lewin (1951) and V. Nilakant & S. Ramnarayan (2006) is one

of the prominent change models followed in the present world. The best model suited for the

current scenario is the combination of both of these models by above authors. It can be divided

into three phases:

The first phase involves preparing the people for change with the focus on getting them to let go

of what is familiar.

The second phase involves taking the steps that actually implement the change.

The last phase involves returning the organization to a stable state again based on the new

culture.

The first stage according to Kurt Lewin, in order to implement a change is Unfreezing and most

of the cases it will be done by the change agent. In this scenario, Rahul Bajaj, the chairperson of

the company is the change agent and this stage involves alerting and communicating the

problems, performance gap and need for change to the internal customers/employees. It is

basically modifying the current situation in order to achieve the proposed change by proper

communication and understanding to the restrainers of change which helps to reduce the

resistance and it is the best strategy for change.

The second stage involves the application of the change model provided by V. Nilakant and S.

Ramnarayan. It mainly highlights the importance of leadership in the process of change. The task

of appreciating change requires the leader to understand the forces of change and prevailing

mindset inside the organisation, where as task of mobilising support require leaders to facilitate

the idea of change. In the same model, task of executing change involves creating the right

structure and processes in an organisation, which is crucial and very important for the vertical

and horizontal communication within the organisation, which ensures that employees are highly

focused during the change process.

Building Change capability involves empowering employees and making them believe in their

own abilities to face new challenges; undertake and complete new tasks. Above all, high

emphasises is placed on leadership in the organisation which is the driving force of the above

tasks, which also plays a vital role in creating and sustaining change within an organisation.

Managed Change, is a data-driven process that guides the project teams, internal change agents

and sponsors to follow as they just need to follow guidelines through simple projects or complex

initiatives.

The third stage is refreezing stage which stabilizes the organisation at a new state of equilibrium.

The main point about this stage is that new behaviour must be, to some degree, congruent with

the rest of the behaviour, personality and environment of the learner or it will simply lead to a

new round of disconfirmation (Schein, 1996). In organisational terms, refreezing often requires

changes to organisational culture, norms, policies and practices. (Cummings and Huse, 1989)

(Source: Bernard Burnes (2004) Managing Change (Fourth Edition) Prentice Hall)

Application of change model in Bajaj Auto Ltd

Unfreezing Stage:

After dominating the Indian two wheeler market for three decades by the end of 1999 BAL

realised the change in consumer preference from scooter to motorcycles with four stroke engines

and predictions was that this trend will continue in a higher scale. There was a 41% fall in

scooter sale in 2001 which was a real threat for the existence of BAL. Also a new set of emission

norms (equivalent to Euro II emission norms) came into effect in 2000 for petrol two stroke

engines. As a result, scooters with two-stroke engines fell out of favour.

Applying the change model proposed above, Bajaj Autos was losing its market share due to

change in consumer preferences, development of new market segments and availability of better

products and scooters manufactured by their competitors. In first step, Chairman of company

Rahul Bajaj which is change agent as well identified the need for change as suggested by Kurt

Lewin, he unfreeze the current situation by making employees aware of problems, performance

gap and need for change. Simultaneously, he empowered and provided new leadership roles to

younger generation such as Rajiv Bajaj (Managing Director). In an attempt to regain market

share, the company increased its production of motorcycles by 67.6% in 2001 even as the

production of geared scooters fell by 44%. By 2001, the company was manufacturing as many

motorcycles as geared scoters.

Moving/Changing Stage:

This is the stage where the leadership qualities of a change agent play an important role in

success of the change. Change agent in our scenario Rahul Bajaj who is the chair person of the

company analysed the present market environment and figure out the importance of change to

retain the market share and to bring the company back in the path of success. He figured out the

customer demands through surveys and categorised the production in different segments such as

executive segment, cruiser segment, premium segment etc. He also introduced youngsters into

the company and gave them more authority in order to create innovative ideas which were very

important for the competitive market. He also invested a huge amount in R&D and also for

design. This completely changed the product portfolio of Bajaj Auto Ltd. Within a short time

after these changes new version motorcycles launched in every segment such as 'Boxer' and

'Caliber'  in executive segment, 'Eliminator' in cruiser segment and 'Pulser' 'Avenger' and

'Discover' in premium segment which was a huge success in the Indian motorcycles industry.

This transformation of Bajaj from scooters to motorcycles created a huge impact on the mind set

of the public especially the new generation who were looking for more performance and stylish

bikes. The turning point in this change process was the introduction of the product 'Pulsar' and '

DTSi '  technology which help them to capture the two wheeler market under their name and to

overcome their rival 'Hero Honda'.

They also tried to resurrect scooter sales. While sale of geared scooters were falling, the gearless

scooter has been growing. The purchasers of gearless scooters were mainly teenagers, women

and older people. So they started production of gearless scooters in 2000 under the name 'Saffire'

which was a great success with its new technology and design from Tokyo R&D a Japanese

design firm. They also give great importance to improve the mileage because it was an important

specification for choosing a new model in the market.

As per the model suggested the change agent was successful in motivating people, engaging

people and developing the capabilities in an economical way rather than going for a  complete

reconstruction of the organisation. They appreciated the change happened in the organisation,

build up the change capabilities, mobilise support and execute the change in the right time and

right manner.

Refreezing Stage:

This is the stage where the company returns to a stable state based on the new culture. It mainly

deals with changes to organisational culture, norms, policies and practices to cope up with the

change for a smooth running of the day to day routine of the organisation. When Bajaj's

motorcycles were becoming popular the scooter sales were really down because of the

competition in market. They analysed the market deeply and made apt changes. Meetings and

sessions were arranged to discuss the unpleasant fact about new competition and flat earnings.

So they were forced to phase out several models including the Spirit, the Sunny Spice, the

Legend NXT 2 and the Bravo. The Saffire, suffered from several technical problems. Its sales

too failed to pick up so they did modifications and was replaced by the Wave in 2005. In 2004,

they also upgraded their old model 'Chetak' with a new four stroke, 125cc engine, with a promise

of greater comfort, superior performance, and better mileage.

In June 2006, the company announced its plans to raise production capacity from 3.5 million

units to 5.1 million units a year by 2009, of which the capacity for two-wheelers was to be 4.6

million units. According to their plans, they recently launched a 220cc variant of it popular

Pulsar motorcycle. In 2004 Bajaj auto changed their old logo and created a new logo and brand

line to renew its new brand identity. This proves that a vision says something that helps clarify

the direction in which an organization needs to move (Kotter, 2007). These visions and their

accomplishments stabilised the organisation at a new state of equilibrium.

Change Agent

The person who has the handed the management of the change is known as the change agent.

"The facilitator who is in-charge of the change in particular section where the change is needed

is known as the change agent". (Mc Calman and Paton 1992). Their task also includes circulate

information, identify problems, strategy development, monitor the progress and problems and

reporting to the management. To introduce a change the change agent must have a vision and

direction and the capability to make people to follow their direction and understand their vision.

(Clarke, 1994).

In this case study, the chair person of Bajaj Auto Limited Mr. Rahul Bajaj is the change agent

who proved to have a great compassion towards changes in market conditions. He also proved to

be an efficient change agent by handling different difficult situation easily. According to the

changes in market conditions he changed the brand names to make them more localised and

classified the motorcycles in different sections so they can penetrate the market more easily. His

adherent Rajiv Bajaj also played a very important role in this change scenario who had a major

role in designing and marketing their icon model 'Pulsar' which help the company to acquire a

major share in market. 'Pulsar' was selected as Bike of the year for continuous 4 years and he

was selected as the Automotive man of the year 2005 by Auto car Professional, bike India and

NDTV India respectively. Timely actions taken by change agent like implementation of changes

in policies, production and technology and final stage of integration help them to achieve the

worlds 4th and India's 1st largest producer of two and three wheelers.

Analysis and Recommendations:

In this scenario Bajaj Auto Ltd handled this particular situation incredibly but there were certain

instances where they could have done even better. The Indian two wheeler market was

dominated by scooters till 1990's and motorcycles came as new favourites. Bajaj was the market

leaders till that time later their sales declined because they did not pay attention to design, R & D

and customer preference. They also didn't give much importance to marketing while the

competitors were keen in increasing the sales through advertisements.  Rahul Bajaj later admitted

that they had been slow in reading the demand pattern and failed to anticipate customer

behaviour. They also didn't participate in any social responsibilities and failed to build a trusting

relationship with customers, employees and society. But they handled the whole situation

sensibly with the proper implementation of change models and the powerful leadership under the

change agent Rahul Bajaj.

Conclusion

This scenario clearly shows that change is a continuous process and a proper identification and

implementation of a change results in organisational growth. Success of change depends on

choosing the perfect change model with fewer resources and can create maximum outcome. An

organisation should anticipate the need for change, utilise the resources effectively to attain this

mission and must integrate this effort into the planning process. Change agent also has an

important role where the desired result depends on how he manages the particular change. To

conclude change is an essential aspect in growth and development and the overall success

depends on how we tackle the change effectively.

Read more: http://www.ukessays.com/essays/india/bajaj-auto-limited.php#ixzz2PL9fWTwL

SWOT ANALYSIS OF BAJAJ TWO WHEELER INDUSTRY

Bajaj Auto Ltd is the second largest producer of two-wheelers in India, a drop from their

preliberalisation position of being market leaders. They are, however, the largest exporters in this

segment, which is in part due to the recent strategies that they have followed, including a shift

towards more R&D intensive investment, and an attempt to cater to all segments of the society.

In this report, we propose to present a holistic view of the automobile industry, mentioning the

various challenges and opportunities available, and Bajaj’s role in the same. We start out with

looking at Bajaj’s current position in the two-wheeler market, and analyse that with respect to the

current macro-economic scenario (in terms of the PEST analysis) and the industry scenario (in

terms of Porter’s Five Forces Model). We also map the changes in PEST to changes in the Five

Forces and analyse Bajaj’s strengths and weaknesses with respect to these. Thereby, we find out

whether these changes can be exploited by Bajaj and give our recommendations as to what their

future strategy should be. Our analysis comes up with the conclusion that the two wheeler

industry, though it is facing a slight downturn today, is still highly lucrative and is likely to

provide immense future potential for Bajaj, as is evident from the forecasts for the industry.

Accordingly, we make several strategic recommendations which we expect would give Bajaj

competitive advantage over other players, and would enable them to regain their strong hold on

the two-wheeler industry.

Contents

INTRODUCTION

BAJAJ AUTO came into presence on November 29,1945 as M/s Bachraj Trading Corporation

private limited. They started fresh by selling two and three wheeler in India and obtained a

license from Government of India to manufacture and it went public in 1960.In 1970, it rolled

out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicle in a single

financial year. In 1985,it started manufacturing at Waluj close Aurangabad. In 1986,it be able to

to produce and sell 500,000 vehicle in a single business year. In 1995,it rolled out its ten

millionth vehicle and manufactured and sold 1 million vehicle in a year.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.According to the

author of Globality : competing with Everyone from Everywhere for Everything, Bajaj has

grown task in 50 countries by creating a line of value –for-money bikes targeted to the different

preference of entry- level buyers.

(Kwenkbodenmille, 2008)

SWOT ANALYSIS:

WEAKNESS

Strong cash base but hasn’t been invested efficiently.

Not a strong internation brand despite high export volumes.

Distribution network is not as strong and extensive as Hero Honda.

STRENGTH

Highly experienced management.

Extensive R & D focus.

High performance products across all categories.

Number one position in exports.

Collaboration with BAFL for financing.

High economies of scale and scope.

OPPORTUNITIES

Rising disposable income.

Increase first time in motorbike buyers

Decline in interest rate for two wheeler financing.

Shift from entry level motorbikes to performance oriented bikes

Inadequate public transportation infrastructure.

Low operating cost.

THREATS

Imitation of designs and technological

Innovations by competitors is easy

Foreign players coming in India, especially

Low cost Chinese motorbikes manufacturers

Declining margins due to increasing

Competition

Source: New Research Report on Companies and Markets, 2008

PESTEL ANALYSIS :

POLITICAL:

●Investment policy- 100 per cent foreign direct investments (FDI) are allowed in companies

through the automatic approval route- (STRENGTH)

International companies can invest in India either by picking up a 100 % equity stake or by

acquiring a share jointly with another company in the auto and auto ancillary segments.

Policy aims to promote a globally competitive auto industry in India

● Import policy (STRENGTH)

In order to protect the domestic industry and restrict likely imports, the government still sets high

duties on these imports.

● Fiscal regulations (STRENGTH)

In order to protect the domestic industry and restrict likely imports, the government still sets high

duties on these imports.

● Excise duty -Two-wheelers and key raw materials (STRENGTH/ WEAKNESS)

Changes in duty rates have an impact on demand too. In 2001-02, the excise duty on the <75 cc

engine capacity two wheelers was lowered. This caused a shift in consumer preference from

mopeds to motorcycles.

● Value added Tax (STRENGTH/ WEAKNESS)

State governments charge value added tax (VAT) or local sales tax and other levies. The change

from local sales tax to VAT is expected to have benefited the two-wheeler industry in the form

of lower tax incidence.

●Emission control laws (STRENGTH)

India has one of the most stringent emission norms in the world.

●Safety laws (STRENGTH)

Tighter emission standards have edged out two stroke motorcycles, which emit high levels of

hydrocarbons and particulates vis-à-vis four-stroke bikes.

ECONOMICS:

Interest Rates(STRENGTH)

Large firms have a cost advantage due to lower rates of interest they are charged while applying

for loans (lower risk involved).A lot of capital is needed to enter the industry as initial outlays on

investment are high, thus higher interest rates would prove as a disincentive to enter the industry.

WEAKNESS:

The buyer needs information on interest rates as these help determine whether or not it is

economical to make a purchase. Customers are highly price sensitive and higher interest rates

may lead to higher prices if the buyer needs a loan to make the purchase.

Inflation (STRENGTH)

Inflation increases cost of purchase for different players differently, depending on the inputs and

sources, may make it difficult for new players to enter. Inflation may affect the prices of different

models differently, thereby making some players better off than the others, as customers may

face costs in switching players, which may again make it difficult for new players to enter.

WEAKNESS:

The buyer is highly price sensitive, and changes in prices affect the industry as a whole as buyers

may not be in a position to buy a more expensive product.If inflation affects the two wheeler and

four wheeler industry differently, then inflation could well have an adverse impact on this sector

Economic Prospects (STRENGTH)

A lot of capital is needed to enter the industry, which may be difficult to come by if the economy

is not doing well, and relatively easier to obtain if the economy is doing well. In times of

economic boom, there are a large number of buyers. Switching costs involved in switching to

substitutes. Easy to switch between suppliers.

WEAKNESS:

These buyers are highly sensitive to price, but in times of good economic conditions, prices may

no longer remain important criteria as disposable income of the population also goes up. Rapidly

growing industry, particularly due to bright economic prospects.

SOCIAL:

(STRENGTH/WEAKNESS)

Age of the Population : As the demographics of India is skewed towards the youth, more and

more people are likely to tread unknown paths.

Population have a strong/weak opinion on green issues

More educated people are focussed towards greener issues, which Bajaj has been able to address

significantly.

TECHNOLOGICAL:

Substantially increasing investments in production capacities(STRENGTH)

Do large firms have a cost or enactment advantage in your segment of the industry?

Is a lot of principal obligatory to enter your industry?

Establishing partnerships in India and abroads

Is there a large number of buyers relative to the number of firms in the business

Proficiency in Understanding Technical Drawings, specifications and well conversant in all

Global Automotive Standards (STRENGTH/WEAKNESS)

Do large firms have a cost or performance benefits in your fragment of the industry? Are there

any brand-named product differences in your industry? Does your product or service have any

trademarked geograpies which give you lower costs?

Increased raw material costs

Increasing costs due to business cycles, rising steel and oil prices

(Kwenkbodenmille, 2008)

RECOMMENDATIONS:

1) Use excess capacity present to produce ungeared scooters for women. The female population

constituting around 50 per cent of our addressable population contributes less then 10 percent of

the total two-wheeler demand. With urban markets with addressable male population getting

saturated, players will have to aggressively target the women population for expansion.

2) Review product mix, focus on R&D to bring new products in market

• Demographics show increased youth population

• Young people fashion savvy

3) Focus on Rural market: Rural markets currently contribute around 45 per cent of the

industry’s demand. However, going forward, with urban markets getting saturated, analysts

expect a rise in demand from rural markets. To address the changing dynamics, BAJAJ would

have to resort to aggressive rural-centric sales and promotional activities. BAJAJ would have to

alter marketing strategies by focusing on rural oriented adverting on mass media, educative road

shows and create aspiration values for the products, and expand their sales distribution network.

• Introduce low cost models

• Develop sales distribution network which is currently weaker than other players

• For rural youth, introduce low cost trendy vehicles

4) Increase focus on exports and penetrate new markets:

With domestic demand for two-wheelers slowing down, it would be increasingly important for

BAJAJ to look beyond boundaries to partially mitigate the slowdown. BAJAJ would accordingly

have to develop products suitable for different markets; high investments are required for setting

up manufacturing facilities and for building a reasonable level of brand equity. Till now BAJAJ

focussed only on economy class and developing country markets, but now in those segments it is

facing competition from cheap Chinese players. Therefore need arises to penetrate new markets

like USA and UK.

CONCLUSION:

Bajaj auto faces stiff competition from the Market leader Honda and closest rival Suzuki. It is

because they are not able to create reliable brand image among their customers. They need to

focus on developing their products that can give better experience to their consumer.

From the survey, it is seen that Bajaj is only able to somewhat satisfy their costumers from their

products. They need to create a great sense of joy in their customers by offering unmatched

product features and service that will make their customers loyal to the brand and this will

greatly help Bajaj in increasing its market share.

Bajaj’s product prices are in comparison with its leading competitors. The problem is that

consumers do not think that Bajaj has that much value and hence prefer to buy other brands.

Bajaj need to offer more competitive pricing and better promotions to sell their motor cycle

better.

APPENDIX:

PEST ANALYSIS: Mapping changes in PEST to changes in 5

Force Model

POLITICAL

Changes in

Macro Force

Effects on

Five Forces

Reasons

Srength/ Weakness

Reasons

Government Policy

--

--

--

--

Investment

policy- 100 per

cent foreign

direct

investments

(FDI) are

allowed in

companies

through the

automatic

approval route

Threat of New

Entrants

( Low )

> International

companies can invest in India either by picking up a 100 %

equity stake or by

acquiring a share

jointly with another

company in the auto and auto ancillary segments.

> Policy aims to

promote a globally competitive auto industry in India

Strength

Although the new policy

brings in many players in the circuit, Bajaj can use its own strengths to leverage upon its own

new opportunities

• Import policy

Threat of new

entrants

( Low)

Bargaining

power of

buyers (Low)

In order to protect the domestic industry and

restrict likely imports, the government still

sets high duties on these imports

Strength

The new regulation is a shot in the arm for Bajaj as it would hinder any foreign player bringing

latest bikes into the Indian market. Also the consumers would now have to stick to Indian

TW manufacturers and Bajaj being a major player would definitely have an advantage.

• Fiscal

Regulations

Threat of new

entrants

( Low)

Bargaining

power of

buyers (Low)

In order to protect

the domestic

industry and restrict likely imports, the

government still sets high duties on these imports.

Strength

The new regulation is a shot in the arm for Bajaj as it would hinder any foreign player bringing

latest bikes into the Indian market.

Also the consumers would now have to stick to Indian TW manufacturers and Bajaj

being a major player would definitely have an

advantage.

Govt policy on the

Economy

--

--

--

--

• Excise duty -

Two-wheelers

and key raw

materials

Threat of

Substitutes

(High)

Changes in duty

rates have an

impact on demand

too. In 2001-02, the excise duty on the <75 cc engine capacity two wheelers was lowered. This

caused a shift in

consumer preference from mopeds to

motorcycles

Strength /

Weakness

Bajaj can as well leverage upon its strengths of benefitting from the low end segment of Bikes.

However, as it wants to enter into newer higher

volume bikes, the Excise

duty increase may act as a weakness as well

Policy influence laws that regulate or tax

the business

--

--

--

--

• Value added

Tax

Threat of new Entrants

( High )

State governments'

charge value added

tax (VAT) or local

sales tax and other

levies. The change

from local sales tax to VAT is expected to have benefited the two-wheeler industry in the form

of lower tax incidence

Strength /

Weakness

With the pressure on tax

reducing, there is a very

high likelihood that more

players jump into the

market as this only acts as an inducement.

• Emission

control laws

Threat of new entrants (High/ Low)

India has one of the most stringent

emission norms in

the world

Strength

Bajaj can utilise its modern technologies to upgrade to the new emission norms much quicker

than other

players because of the

availability of capital.

However, the other existing bigger players can also leverage upon their capital investing ability

to upgrade to satisfy the stricter

emission norms.

Govt position on production /

Marketing

--

--

--

--

• Safety laws

Threat of

Substitutes

(Low)

Tighter emission

standards have

edged out two stroke

motorcycles,

which emit high

levels of

hydrocarbons and

particulates vis-àvis

four-stroke

bikes

Strength

With older technology/

obsolete products going ex: scooters, Bajaj can leverage upon its decades of presence and brand

to launch newer products. Also the smaller players which

eat into the market of Bajaj will now cease to exist

ECONOMIC:

Economic

Factor

Porter’s

Five Forces

Reasons

Strength/

Weakness

Reason

Interest Rates

Threat of

New entrants

Large firms have a cost

advantage due to lower rates of interest they are charged while applying for loans (lower risk

involved)

Strength

Being one of the biggest players in the market, risk is lower if project had

a Bajaj Auto acking

A lot of capital is needed to enter the industry as initial outlays on investment are high, thus

higher interest rates would prove as a disincentive to enter the industry

Strength

An existing player, Bajaj no longer faces this threat, and this is a

strength for it in the face of rising MZinterest rates

Bargaining

power of

buyers

The buyer needs

information on interest

rates as these help

determine whether or not it is economical to make a purchase

Weakness

This information is easily available to buyers, thereby increasing their

bargaining power, and is a threat for Bajaj Auto

Customers are highly price sensitive and higher interest rates may lead to higher

prices if the buyer needs a loan to make the purchase

Weakness

Bajaj is no exception to the price sensitive rule, and rising interest rates could pose a major threat

Inflation

Threat of

New entrants

Inflation increases cost of purchase for different players differently, depending on the inputs and

sources, may make it

difficult for new players to enter

Strength

As an existing player, Bajaj may be in a better

position than others

Inflation may affect the

prices of different models differently, thereby making some players better off than the others, as

customers may face costs in switching players, which may again make it difficult

for new players to nter

Strength

The benefit if being an existing and established

player in the industry

Bargaining

power of

buyers

The buyer is highly price sensitive, and changes in prices affect the industry as a whole as buyers

may not be in a position to buy a more expensive product

Weakness

Bajaj cannot maintain lower prices in the face

of inflation, as it itself faces higher costs

Threat of

Substitutes

If inflation affects the two wheeler and four wheeler industry differently, then

inflation could well have an adverse impact on this sector

Weakness

Bajaj may be unable to do anything if inflation

affects the two wheeler segment more than the car industry, then people may either prefer to buy

cars, or buy neither cars

nor bikes

Bargaining

Power of

Suppliers

Inflation may make it

difficult for the players to switch suppliers easily and cheaply

Strength

Bajaj has a number of suppliers, so may not face this problem

With rising inflation, cost of purchases may no longer remain insignificant

Weakness

Inflation, though it may have a subdued impact on Bajaj, is nevertheless

likely to increase the cost of purchases to some

extent

Economic

Prospects

Threat of

new

entrants

A lot of capital is needed to enter the industry, which may be difficult to come by

if the economy is not doing well, and relatively easier to

obtain if the economy is doing well

Strength

Bajaj no longer faces this hassle

Bargaining

power of

buyers

In times of economic boom, there are a large number of buyers

Strength

Being an stablished

player, Bajaj can leverage on its brand name to

attract the new buyers

These buyers are highly

sensitive to price, but in times of good economic conditions, prices may no longer remain an

important

criteria as disposable

income of the population also goes up

Weakness

Bajaj is coming up with new models, some more

expensive than others, however, owing to healthy economic

conditions, such models may actually be

appreciated by the

buyers, thereby

presenting an

opportunity

Threat of

Substitutes

Switching costs involved in switching to substitutes

Strength

Could be a threat if in times of economic boom

buyers are willing to switch to cars instead of

purchasing bikes

Bargaining power of

Suppliers

Easy to switch between suppliers

Strength

Due to a large number of suppliers, and Bajaj’s business being important

to them, good economic conditions would mean better business for Bajaj

Rivalry

among

existing

customers

Rapidly growing industry, particularly due to bright economic prospects

Weakness

Could eat into Bajaj’s share, thereby also posing a threat

SOCIAL:

Changes in

Macro Force Sociological(S)

Effects on Five

Forces

Reasons

Strength/ Weakness

Reasons

Age of the

Population

Threat of Substitutes (High)

Bargaining Power of Consumers (High )

As the demographics of

India is skewed towards the youth, more and more people are likely

to tread unknown paths

Strength

Bajaj has multiple options in the two wheeler segment. Thus a ready

consumer base can be attracted to its new launches

Population have a strong/weak

opinion on green issues

Threat of

Substitutes (Low)

Bargaining Power

of Consumers

(Low )

More educated people are focussed towards

greener issues, which Bajaj has been able to

address significantly

Strength

Available technologies with Bajaj has helped it to remain abreast with latest norms

TECHNOLOGICAL:

Factor

The affected 5

Forces

Factor

Strength/

Weakness

Reason

Substantially

increasing

investments in

production

capacities

Threat of new

Entrants

Do large firms have a cost or performance

advantage in your

segment of the

industry?

Strength

Bajaj auto already a big player, have an advantage here

Is a lot of capital needed to enter your industry

Strength

Establishing

partnerships in

India and abroad

Threat of new

Entrants

Does experience help you to continuously lower costs

Strength

No 1 player in exports Bajaj Auto can always

collaborate with foreign players

Bargaining power

of Buyers

Is there a large number of buyers relative to the

number of firms in the

business

Weakness

Already faced with stiff competition, it will increase difficulties for

Bajaj

Proficiency in

Understanding

Technical

Drawings,

specifications and well conversant

in all Global

Automotive

Standards

Threat of new

entrants

Do large firms have a

cost or performance

advantage in your

segment of the industry

Strength/

Weakness

Its high economies of scale and scope gives it a cost

performance advantage in

the segment, however the

Chinese players can give it a great competition in cost

leadership

Are there any

proprietary product

differences in your

industry

Strength

Its high erformance

products across all

categories clubbed with extensive R&D facilities creates a differentiation

for its products

Does your product or

service have any

proprietary features

which give you lower

costs

Strength

Very critical, it has what it takes to be a big player, but a loose of focus at this moment when the

growth is reducing and new

players are coming can create problems

Increased raw

material costs

Bargaining power

of Suppliers

Increasing costs due to

business cycles, rising

steel and oil prices

Strength

Bajaj auto has one of the lowest RM to overall cost ratio in the industry

Need an essay? You can buy essay help from us today!

Read more: http://www.ukessays.com/essays/economics/swot-analysis-of-bajaj-two-wheeler-

industry-economics-essay.php#ixzz2PL1B5PbX

http://www.indiainfoline.com/Markets/Company/Background/Products-Services/Bajaj-Auto-

Ltd/532977

http://en.wikipedia.org/wiki/Bajaj_Auto

http://www.bajajauto.com/bajaj_corporate_codeofconduct.asp

http://economictimes.indiatimes.com/bajaj-auto-ltd/infocompanyhistory/companyid-21430.cms

http://profit.ndtv.com/stock/bajaj-auto-ltd_bajaj-auto/reports

http://www.globalbajaj.com/nigeria/english/about-us/global-network/