STP INTRODUCTION SECTOR ANALYSIS PLC FINANCE HR

2. FY13 FY14 FY15 FY16 FY17 FY18 FY19
NO. OF AUTOMOBILES SALES (IN
MN) NUMBER
17.79 18.42 19.72 20.47 21.86 24.86 26.27
17.79 18.42 19.72 20.47
21.86
24.86
26.27
0
5
10
15
20
25
30
SALES
YEAR
NO. OF AUTOMOBILES SALES (IN MN)
NUMBER
NO. OF AUTOMOBILES SALES (IN MN) NUMBER
FY13 FY14 FY15 FY16 FY17 FY18 FY19
NO. OF AUTOMOBILES PRODUCED
(IN MN) NUMBER
20.65 21.5 23.36 24.02 25.33 29.07 30.92
20.65 21.5 23.36 24.02 25.33
29.07 30.92
0
5
10
15
20
25
30
35
PRODUCTION
YEAR
NO. OF AUTOMOBILES PRODUCED (IN MN)
NUMBER
NO. OF AUTOMOBILES PRODUCED (IN MN) NUMBER

3. 13%
81%
3%3%
SHARE OF EACH SEGMENT IN TOTAL
PRODUCTION VALUE
PASSENGER VEHICLE TWO VEHICLE THREE VEHICLE COMMERCIAL VEHICLE
AUTOMOBILE
SECTOR, 7.50%
REST OF
OTHERS,
92.50%
GDP SHARE IN INDIA AUTOMOBILE
SECTOR,
3.50%
REST OF
OTHERS,
96.50%
GDP SHARE IN WORLD

4. THREAT OF SUBSTITUTES
1.With new bikes switching cost is not
so high
2.Low cost of substitution, if not car
then bus or 2-wheeler
3.Technology, a feature even in mass
automobile market
BARGAINING POWER OF
SUPPLIERS
1.Low in terms of bargaining power
2. Suppliers have to play according to
the rules set by the automobile brands.
RIVALRY COMPETITION
1.Exit barriers very high
2. Level of customer loyalty is high and
while the industry is large, it has
matured.
BUYER POWER
1.Small individual buyers that buy
single vehicles.
2.Buyers are price sensitive mostly
3. No big costs involved in switching to
another brand or to an alternative
mode of transportation
THREAT OF NEW ENTRANTS
1. Difficult for new brands to enter
because of the large investment
required for establishing a automobile
brand.
2. Brand image and equity are some
major advantages for the existing
brands.

6. 3.80%3.80%
12.00%
14.80%
35.90%
26.10%
3.20%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
SHARE
YAMAHA ROYAL ENFIELD
BAJAJ AUTO TVS
HERO MOTOCORP HONDA MOTORS
SUJUKI
 Bajaj Auto reports 21% rise in Q2 consolidated
profit at Rs 1,523.32 cr.
 Bajaj Auto plans to drive in three more KTM models by
March-end
 Bajaj Auto to accelerate launches after BS-VI rollout;
Husqvarna launch rescheduled to 2020
 Bajaj auto launches Chetak scooter in electric avatar

7. STRENGTHS
1.Strong brand name and huge market.
2.Excellent distribution through franchisees.
3.Most reliable for Indian roads as it requires low maintenance.
4.Good mileage.
WEAKNESSES
1)1.Focuses on just mileage.
2)2. Market penetration at the global level is low.
3)3.Quite similar designs over the years.
OPPORTUNITIES
1.Expansion in rural and tier-2 cities.
2.Innovations in technology.
3.Fast growing automobile market..
THREATS
1.New entrants(Benly, UM motorcycles)
2.Competitors(Hero MotoCorp, Honda Motors)
3.Low cost bikes
4. Entrance of the electric vehicles.
SWOT
ANALYSIS

8. SEGMENTATION
• Age { 18-60 yrs}
• Income {middle level
income}
• Mostly male
TARGETING
• Daily commuters
• Fuel economy seekers
• Affordability with
design
POSITIONING
• Discover India with the
Power of One Litre.
• Bano Zindadil
• To help men
“rediscover” their
youth

9. PULSAR,
DISCOVER
????
NINJA
CASH COW
PLATINA ,
CT 100
DOG
AVENGER,
CHETAK
H
L
LH
TIME
SALES

11. Performance
Ratios 2019 2018 2017
ROA (%) 8.26 18.23 20.52
ROE (%) 22.87 22.51 25.26
ROCE (%) 32.62 31.80 34.95

12. Organization Structure
CE0
DEPUTY
GENERAL
MANAGER
SALES &
MARKETING
PROCUREMENT HR PRODUCTION
FINANCE &
CORPORATE
AFFAIRS
EXECUTIVE

13. Job Description & Job Specification
• MARKETING • FINANCE • HUMAN RESOURCE
QUALIFICATION REQUIRED - MBA/PGDM IN
ENGINEERING/DIPLOMA
Selection Process
APPLYING OR
SUBMITTING
THE PROFILE TO
THE COMPANY.
ONLINE
APTITUDE
TEST
GROUP
DISCUSSION
TECHNICAL
INTERVIEW
ROUND + HR
ROUND

14. Training & Development
• FORMAL TYPES OF LEARNING THROUGH COURSES AND ALSO THE INFORMAL
MENTORING & COACHING CHANNELS.
• COMPANY ADOPT ON-DEMAND AND MOBILE SOLUTIONS THAT MAKE LEARNING
OPPORTUNITIES MORE ACCESSIBLE FOR THEIR PEOPLE.
Performance Appraisal Model
SETTING PERFORMANCE LEVEL
COMMUNICATION LEVEL COMPARISON
DISCUSSING RESULTS
TAKING PROPER MEASURES

15. Organization Culture
“VERY GOOD COMPANY”, Current Employee –
Anonymous employee in Chennai
“NICE COMPANY TO LEARN”, Former Employee –
Anonymous employee
“GREAT PLACE TO START CAREER”, Former Employee -
Anonymous Employee in Pune
“EXPERIENCE WAS OK OK”, Former Employee - Assistant
Manager in Pune