BAJAJ CASE STUDY
1. What challenges confronted BAL and which were of its own making?
In 1980s, the government’s impact was the most challenging factor confronting BAL. It witnessed an increase in both foreign and domestic competitors because of the Indian government’s permission of foreign technology and local manufacturing capacity expansion. Accordingly, Japanese products were more preferred than domestic brands due to its durability and eye-catching design. Apart from Yamaha, Suzuki, and Piaggio, Honda who took out the major market share of BAL scooter and motorcycle segments was its fiercest rival.
Since 1990, due to the economic downturn, two-wheelers vehicles were no longer the first prioritized consumer products but TVs, VCRs,
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They had found that this target market predominantly valued the purchasing – maintenance cost and the low fuel consumption. BAL also penetrated secondary market to buy BAL’s used vehicles with higher price.
In order to match consumers’ want, BAL reorganized its structure to obtain better cross-functional cooperation among Marketing, R&D and Production departments. New products were introduced periodically and spare parts were sold nation-wide with low cost, which reinforced BAL’s competitiveness. Beside strengthening cost advantage, they established a technology acquisition agreement with Orbital, which provided solutions to improve fuel efficiency and decrease emission levels.
In order to enhance the competency in distribution, BAL connected with private transport companies and trained dealers’ staff to improve their technical capability. BAL also supported their dealers in planning sales targets for specific products, services and advertising. Regarding developing dealer network, regional depots were built up to quicken inventory turnover and supply a full range of two and three wheelers, hence encouraging dealer loyalty.
In addition, BAL provided customers with consumer finance to purchase vehicles by establishing the Bajaj Auto Finance Ltd. Finally, BAL executives invested more in Marketing Department to secure brand awareness and preference as well as to introduce new vehicles. BAL not only broadcast their commercials
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 fourth part of this report will investigate the claim that “smaller cars provide better values than larger cars,” given the provided data. The claim does not make clear what measurement for determining “values” is to be used, but we will proceed with the assumption that Consumer Report’s Value Score is an accurate representation of real-world value. Because we determined that the Size category and the two related ‘dummy’ variables did not have a significant relationship with the Value Score (which caused their subsequent deletion from the equation), and also because Size is largely represented by Cost/Mile—the choice was made to analyze the coefficient for Cost/Mile to help come to a conclusion. We are going to use the following estimated regression equation (which we constructed in Part III) for our analysis:
With a wide variety of vehicles and manufacturers due to low switching costs, the bargaining power of customers is very high in the automobile industry. Also foreign brands are selling vehicles in the Indian markets, adding to the bargaining power of customers in this industry. Thus the value created by the firm lies in adding differentiating features by innovating and increasing the customer’s willingness to pay while reducing the supplier’s opportunity cost.
A2 Auto Corporation is one of the world’s largest manufacturers and distributors of automobiles and automobile ancillary parts. In its Form 10-K, filed with the SEC, the following information was disclosed.
As Motorking Corporation considers introducing its now “gas extender” product into the market, the management must consider various factors to determine if this is a good financial move. The production manager needs to determine if the product will generate a profit for the corporation, how much product is expected to sell to determine how much to produce and how much to outsource.
The impact of technology affects the market because people are shifting towards the purchase of environmentally friendly cars. The business level strategy at Honda is in line with its enterprise and corporate strategy. In the motorcycle industry, the corporation is striving to build its products and services very close to its customers in a total of 21 plants that are spread across 21 countries (Hu, B.2013). The corporation also conducts Research and Development (R&D) in a total of six countries. The research and development system is tailored in its approach to producing products and services that are durable and reliable at the same time (Hu, B.2013). The focus of the Honda foundation is to have three main dimensions; social, economic and environmental issues. Environmental regulations Honda conducts its businesses in Japan and throughout the world (including North America, Europe, and Asia). A continued economic slowdown, recession and the sustained loss of consumer confidence in these markets, which may be caused by rising fuel prices or other factors, could trigger a decline in demand for automobiles, motorcycles and power products that may adversely affect Honda ‘s results of operations (Hu, B.2013). Regulations regarding vehicle emission levels, fuel economy, noise, safety and noxious substances, as well as levels of pollutants from production plants, are extensive
Critical path analysis is a method that is used to plan out the many activities involved in a project to be able to find the most efficient way of complete it and how to complete it on time.
Demand for cheaper products is high because of economic difficulties. People lose their jobs or have a hard time to find a job. Furthermore, people need an automobiles because it doesn’t only help them move efficiently but
Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also
The fight amongst the major players in this industry is not over price, but over capturing the market share. Since, there is no one definitive leader in the motorcycle industry on the global level, the companies tend to steal each other’s business, this makes the industry rivalry cut throat. One of the crucial factors that make this industry extremely attractive is the constant drive for innovation. Since different industry participants have different approach towards the same segment of the industry, there is a very high
Also Honda Motor Co. follow one of the important concept called Holistic Marketing which is the key indices for a company. It follows the Integrated Marketing i.e company tried to work simultaneously on product, services and marketing extensively. The company’s product was well established in the market from previously, they followed to advertise their product so that it can reach to the customer and they prefer their product
Please use the following questions as guideline to prepare the case: (Follow instructions in outline except those mentioned below..
The subsequent analysis is based exclusively on sources collated from secondary research data. Research data consisted of chronicles and literature from BMW, domestic and foreign journals, marketing and market statistics, as well as published company reports. To reveal the success story of BMW, we will explore the concern with
For example: Tata Motors has a "Indica car" manufacturing plant in Pune but its customers are all over India. So, Tata Motors needs to set up an efficient distribution system so that the products reach its consumers.
Then use a combination of the various market segments to narrow down on an EFFECTIVE target market. Some of these may include, but are not limited to demographic, geographic, and behavioral. They were really pushing the whole “cheap” aspect in an area where the market segment is more interested in cars that symbolize a greater status. In other words, the Tata Nano is