Bajaj Auto Limited Case Study

1900 Words Aug 30th, 2009 8 Pages
{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

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