Founded in 1926, Bajaj Auto Ltd is India's second largest motorcycle manufacturer. It has 34 companies in its group and owns 51% of KTM. While its most famous tagline is "Hamara Bajaj", it aims to attain world class excellence through value-added products. Bajaj faces competition from Hero MotoCorp and Honda but differentiates itself through extensive R&D and a focus on performance motorcycles. Going forward, it aims to leverage its alliance with KTM and expand into new markets to potentially become the number one player in India.

1. 20132013

2. Introduction to the IndustryIntroduction to the Industry
and the Companyand the Company
 Founded: 19261926
 Founder: Jamnalal BajajJamnalal Bajaj
 Present Chairman: Rahul Bajaj: Rahul Bajaj
 Bajaj Group has 34
companies.
 Tie-up with: Kawasaki in late: Kawasaki in late
1990s;1990s;
 Famous for Tagline
“Hamaara Bajaj”“Hamaara Bajaj”
 Has stake of 51% in KTM51% in KTM.
 33rdrd
largest in world, 2largest in world, 2ndnd
largestlargest
in Indiain India in motorcycle
manufacture.
 Plants:
 WalujWaluj
 ChakanChakan
 Pant NagarPant Nagar

3. Vision and MissionVision and Mission
VISIONVISION
• To attain World Class Excellency by demonstrating
Value added products to customers
MISSIONMISSION
• Focus on value based manufacturing
• Total elimination of wastes
• Pollution free & safe environment
Source: Bajaj Auto Ltd

4. Industry analysisIndustry analysis
• The auto industry have been going through
troubled times.
• Falling rupee is adding woe to the automotive industry.
• This is inflating the production.
• Alliance with other companies have become trend.

5. Industry analysis (contd.)Industry analysis (contd.)

6. External environmentExternal environment
POLITICAL:
 Agreement with Bhartiya Kamgar Sena(BKS) at
worli plant.
Restriction in production policy in 1969.
ECONOMIC:
Recession , inflation , high interest rates and
decline in purchasing power.
SOCIAL:
Demographics
Lifestyle

7. TECHNOLOGY :
Business process
First company to come up with DTSi in bikes.
LEGAL :
Employee protection for unfair discrimination at
work place.
Health and safety at work place.
Fair wages.
ENVIRONMENTAL :
A production unit in Pantnagar near uttarakand
was affected due to natural disaster.

8. StrengthStrength
Extensive R & D focus.
Widespread distribution network.
High performance products.
High export to domestic sales ratio.
Bajaj has not been able to reach the Hero Moto
Corp’s sales volume.
Not a global player in spite of huge volumes.
Less globally recognizable brand.
WeaknessWeakness

9. OpportunitiesOpportunities
Alliance with KTM.
Scope for Developing new Technology.
Launching of new products and variants.
Emerging markets and expansion abroad.
ThreatsThreats
From Hero, Honda and TVS.
Strikes and Lockouts from Employees.
Government regulations.
Unstable Economy.
Change in tastes of consumers.
Price wars

10. Top 3 competitorsTop 3 competitors
Hero Moto Corp
Honda
TVS

11. Future of Industry & CompanyFuture of Industry & Company
• Take longer route to become #1 in volumes.
Re-entry into the entry-level marketRe-entry into the entry-level market
Return to scootersReturn to scooters, but only after Bajaj reaches a
"dominant" global share in bikes.
“We are No. 1 in
technology, in exports, in
market cap, in
profitability....the only bit
that remains is to be a
leader in volumes.“

12. MaximizationMaximization
• 3-wheeler fits into a strategy of
‘MaximizationMaximization‘
• Realization:
Splendor and PassionSplendor and Passion
v/s
Bajaj 4S and the BoxerBajaj 4S and the Boxer (Less success of Bajaj).
• Instead of “me-toome-too” built his own “nichesniches”.
Reference: Blackberry vs Apple.
• Between 2001-2003 he made the difference
by introducing ……….

13. DifferentiationDifferentiation

14. øBajaj's strategy is not too different
from that of
øBajaj’s Highest operating margins:
3-wheelers: 25%
Pulsar: 20%
øBajaj hopes to earn more
respectability in this segment by
graduating to a Quadricycle (RE60)

15.  ““We specialize in motorcycles and make good money from them, butWe specialize in motorcycles and make good money from them, but
we make a hell of a lot more in 3-wheelers”we make a hell of a lot more in 3-wheelers”: Rajiv Bajaj
 Management guru Michael Porter’s Quote:: "The essence of strategy is"The essence of strategy is
choosing what not to do“choosing what not to do“
 Tom Heehler: “Courage is the ability to ignore your options““Courage is the ability to ignore your options“
 ““One day Bajaj will have to come back to scooters but I am sure it willOne day Bajaj will have to come back to scooters but I am sure it will
be a premium product, and high on fuel efficiency"be a premium product, and high on fuel efficiency" : says R L
Ravichandran, executive director, Eicher Motors.
http://online.wsj.com/article/SB10001424127887324165204579030243351986628.html
http://autobei.com/blog/indian-two-wheeler-market-analysis-april-may-2013-scooter-segment-
grows-at-13-88-while-overall-market-grow-by-1-04/

17. • Bajaj is successful in implementing its
strategies.
• Looking forward to develop technology.
• Introduce various new products.
• Be #1 in 2-wheeler segment.