BAJAJ-STRATEGY

P ORTER’s FIVE FORCES a n d

COMP LEMEN TORS Entry Barriers: High
•Economies of Scale
•Technical Expertise
•Distribution network
•Brand Identity

Supplier Power: Low Buyer Power: High

•Fragmented Suppliers •Lot of choice

•Cheap imports •Increased Competition
•Customized parts

Complements

Substitutes: Low •Latest Technology

•Roadside service
•Public Transport •Fuel Cost
•Second hand cars
 SWOT ANALYSIS
Strengths: Weaknesses:

•Brand Name •Generic name associated with scooters

•Product design & development capabilities •Dependent on foreign counterparts for technological suppo
•Extensive R&D focus •Not a globally recognizable brand
•Widespread Distribution network
•High Performance Products
•High exports compared to competition
•Economies of scale

Opportunities: Threats:

•Double digit growth in 2 wheeler market •Competition catches up innovation in no time

•Untapped market in premium segments •Cheap imported bikes from China
•Growing gear less scooters and scooterette market •Margins getting squeezed
•Growing world demand for entry level motorcycles •Threat in 3 wheeler segment as well
 Value chain & linking
The four-brand focus a new move by Bajaj will realign the entire organization and every
operation from marketing and sales to R&D, accounts, finance, advertising, HR,
production and distribution along these verticals.

ØIt could lead to the company dropping the Bajaj brand eventually.
•

ØGiving a certain
•
edge over competitors
•
Business Strategy
Sustaining Competitive
Advantage
 Corporate Strategy
• Growth Potential in current business
•

 Bajaj Auto demerged insurance business in 2007-08 to focus on

growth opportunities in auto industry
•

• Transfer competencies to deliver value

•

 Collaborate with KTM Power Sports to develop Sports bike

•

• Cost Saving Opportunities

•

 Establishment of exclusive network in Indonesia to serve

southeast Asia
•

• Focus on Technology to continue building

high end motor cycles
•
 Internal Analysis
Resources and Capabilities
•

• Research and Technology


 Higher versions of Brand Pulsar, Discoverer. Technology :
DTS-Si
 Technology enabled movement to higher CC bikes
 Planned launches of Sports Bike
•

• Collaboration
 Resource aggregation through collaboration KTM Power
Sports
•

• Corporate Management Practices


 Exploit Govt. Incentives by setting up SEZs
 Organization Structure enabling to explore SEZ for tax
Business growth rate
BCG Matrix - Bajaj

Relative Market Strength

 Recommendations
Ø Look at ungeared scooter
offerings
Ø Focus on High Margin
Products Motorcycle
• - Executive and premium
segments
Ø Boost the company’s
operating margins
Ø Tap export market more
efficiently
Ø Target youth effectively -
live up to Gen X
expectations
Ø Venture into the small car
segment (JV)
Ø
 

•
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