{draw:frame} CASE STUDY: BAJAJ AUTO LTD. EXECUTIVE SUMMARY Bajaj Auto Limited was established in 1945, initially importing scooters and three wheelers from Piaggioand later becoming a powerhouse in the Indian two wheeler industry. This paper highlights the effects of the Indian government policy on foreign imports until 1991, BAL’s marketing or lack of it during this period and the evolution of the Indian two wheeler industry from scooters to 2 stroke and 4 stroke bikes with a strong emphasis on BAL while reviewing its strategies. Along with the analysis, this paper suggests the possibility of BAL moving into developing markets in order to increase sales and establish a global footprint. The report also includes SWOT & PESTLE …show more content…
needed to set sight on achieving a sustainable competitive advantage through fully utilizing their core competence and strategic planning by: 4.1 REASONS FOR EXPORT TURN DOWN IN 1990s {draw:frame} In 1985, Bajaj Auto posted earnings of $14 million on sales out of the $232 million, less than one percent of which occurred outside India. As of June 30, 1986, the company reported further sales increase to $362 million for the year. Founder Rahul, Bajaj, claims a 40% share of India's motorized two and three-wheel market, but this could change since Rajiv Gandhi's government opened a market for foreign competition. Moreover, the company's export sales have declined from a high of $11 million in 1981 to $2 million in 1985 (Tenorio, 1986). BAL’s expansion programs in North America and Europe were halted as Piaggio filed a lawsuit against them, accusing BAL of copying their trademark design and style of their scooters. By the
The motorcycle industry is a consolidated industry. The U.S. and international heavyweight motorcycle markets are highly competitive. The major players, such as Yamaha, Suzuki, and Honda, generally have financial and marketing resources that are substantially greater than the non-major players. Competitions in the heavyweight
The article mainly talks about strategic management employed by organizations to meet their strategic objectives and hence achieve organizational mission. This will enable the firm to establish a competitive advantage (Gluck, Kaufman, & Walleck, 1980). A competitive advantage is when a company can provide better services or offer equally better products than other organizations. The input of the customer and the competitive landscape must be taken into consideration to sustain a competitive advantage, (Freeman, 2010). Other factors that contribute to these are the emerging technologies and the government regulations. According to the economic system is becoming more complex and
Tata Motors released the Nano automobile in 2008. In 2007, India with a population of 1.2 billion, only bought a little over 1 million automobiles. By contrast, they bought over 7 million
D – Discuss how sustainable the most dominant competitive advantage achieved by any company with your industry was.
According to me, the motorcycle industry is very attractive. The main reason to back my claim is the level of competition in the industry. There is a very high level of completion between all the companies present in this particular segment. The main factors that drive this rivalry are different positions of different players within the industry, differences in technical know-how, different marketing campaigns, differences in core nature of the products and differences in strategies. The players in this particular industry don’t fight over price of their products, they rather compete with each other in terms quality of their products and the nature of their services to different segments of customers. Each player had its own unique strategy and nature of the product for a particular segment of customers, this tends to intensify the competition amongst companies in the industry.
The Bajaj Company stands amongst the top 10 Companies in automobile in India. Its footprint stretches over wide range of products.
Although Harley-Davidson has many opportunities, they still face several significant threats from external forces. For example, within the industry Harley faces threats from the intensity of competition and the threat of substitute products. Harley-Davidson is competing with Asian motorcycle makers such as Yamaha, Suzuki, and Honda. While these makers do not specialize in heavy bikes, they do have the potential to reduce Harley-Davidson’s market share as well as provide substitute products for consumers. Automobiles also pose a threat due to the ever-increasing amount of cars being produced and sold internationally. This has forced Harley-Davidson to spend more money on marketing in foreign markets.
needs a new business strategy to remain competitive and on path to achieve its vision, mission,
I will discuss a business opportunity for Harley-Davidson, Inc. to begin offering motorcycle products in Vietnam to increase stagnant sales over the past four years. The mission of Harley-Davidson is to fulfill dreams of motorcyclists by expanding the line of motorcycles and branded products and services in selected market segments. The organization has to look for fresh customers among different market segments and age groups since the current market segment is aging. Vietnam is a suitable country for Harley-Davidson due to the city streets being chaotic, making traveling easier for two-wheeled vehicles. The Vietnamese tropical and temperate climate makes cyclists traveling through the countryside of rice
The automobile industry has exceedingly grown in today’s world. From the world’s fastest, luxurious car to the economic and fairly cheap ones, the market is very demanding. The industry in this analysis is Tata Nano. Tata Motors was established in the year 1945 by Ratan Tata and has developed as one of the most prevalent automobile industry in India. Tata Motors, established in a country where most of the population can only afford purchasing motorbikes. But, recent studies showed that 65% of Indian families are now able to afford cars and also applies to the increasing purchasing power of people across developing countries. The Tata Nano was launched in 2008, as a vision of Ratan Tata to facilitate those families who drove on a scooter to have a more comfortable drive at an affordable price of just $2500. Tata Nano is also known as the world cheapest car and signifies great technology and a small
Strategy is the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a challenging business environment to meet the needs of markets and to fulfil stakeholder expectation (Tutor2u.net, 2016). Strategy includes the movement arrangement of a particular organization for building focused advantage What 's more expanding its triple end result again those long haul. Likewise, the action plan identifies with accomplishing the monetary, social, furthermore biological execution destinations; basically, it serves span the hole between those long haul dream What 's more short-term choices. sometimes strategy is more about you actually do rather then what you intend to do which mean our real strategy emerge as we do it and may not line up with the plan (YouTube, 2016). In addition, high level of orchestration and vision is very essential in order to achieve overall goal. The Morden day executives need to develop a set of complex tactics that will lead to success and a good strategy should answer four key question which are where to compete, what value to be developed, what are the resources and capabilities to be used and how to sustain unique value (YouTube, 2016). Strategy may be generally regarding utilizing inside aids on make quality included
One of Harley Davidson biggest opportunities is intrinsically linked to its major weakness. Internationally there is a large bit of a very big pie that Harley Davidson has not managed to attain. Although Harley Davidson has less than 13% of the heavy weight motorcycle sales in Europe, they manage to hold the number 2 ranking in this market. This ranking indicates that no one competitor owns the heavy weight market in Europe and suggests that the customer loyalty amongst the competitors is far from what Harley Davidson enjoys in the USA.
Production appears to be a constant problem for Tata Motors. Branded production of Tata motors vehicles is geared towards economical cars and not luxury, while it appears that the market is geared more towards luxury. Tata Motors branded car sells fell 31 percent from 2013 to 2014, and in 2015 fell another 24.5 percent from 2014. Production also appeared to have missed a large flaw in the Nano which caused it to catch fire. Marketing also seems to be lacking in other countries. Although Tata Motors is present in many countries, the largest portion of their consumer based is India where the company is mainly located. Although the largest portion of their sales comes from India, Tata Motors holds very little of the market share for passenger vehicles in India.
The firm’s sources of sustainable competitive advantage are (1) its ability to recruit and retain the best talent, (2) its ability to add value to that talent while with the firm, and (3) its ability to develop and maintain relationships with top industry executives.
This is to certify that the dissertation titled “ International conflicts of Indian companies: Case study of Maruti Suzuki and Mahindra and Mahindra” carried out by Ms. Jyoti mahajan ,D/o S.Vinod kumar has been accomplished under my guidance & supervision as a duly registered M-com (hons) student of Guru Nanak Dev university, Amritsar. This dissertation is being submitted by her in the partial fulfillment of the requirement for the award of master of commerce from GNDU.