The document provides an industry and firm analysis of the Indian two-wheeler industry. It notes that the two-wheeler segment accounts for 81% of the Indian automobile industry by volume. The industry boundary covers motorcycles from 100cc to 650cc. A PEST analysis identifies political, economic, social and technological factors impacting the industry. The evolution of Bajaj Auto from 1945-2016 is outlined. A Porter's Five Forces analysis finds competitive rivalry in the industry to be high. The document recommends new product development, market penetration, market development and diversification strategies using Ansoff's Matrix and identifies growth opportunities using BCG Matrix analysis.

1. Industry & Firm
Analysis
Presented by: Group 3

2. Industry Scenario
13%
3%
3%
81%
Market share
Passenger vehicle Commercial Vehicle
3-Wheeler 2-Wheeler
• India is largest producer of 2 Wheelers
in the world (23 Million vehicles in 2015)
• The “Indian Two - Wheeler Industry”
accounts for 81% by volume of the
“Indian Automobile Industry”
The two wheeler segment comprises of
the following:
• Motorcycles (100cc to 650cc) – Our
Industry boundary
• We exclude Scooters (100cc) as Bajaj
has exited this segment.
“We are not making scooters. For that,
we need to earn the right to make them
and for that I need to be No. 1 in
motorcycles.”
- Rajiv Bajaj
Industry Boundary:

3. PEST Analysis
Political
•100% FDI
•Make in India
•Eco-Friendly
Vehicles
•AMP (2006–16)
Economic
•Automobile
sector targets
10% of GDP by
2016
•ED reduction
in Budget 14-
15
Social
•Lifestyle
•Social status
•Demography
•Social
Technological
•Increase in
power
•>100 kmpl
•Reduction in
overall costs
•Style & Design
•Innovative
Features

4. 1945 -1960
•1945- M/S Bachraj
Trading
•1948- Import of Vehicles
•1959- Manufacturing
Licence
•1960- Public Limited
1961-1980
•1970- Produced 100000th
vehicle
•1972- Bajaj Chetak
•1975-JV with
Maharashtra Scooters
•1977- 100000unit in a year
1980-2000
•1985- Aurangabad Plant
•1986-KB100 Motorcycle
•1991- KB 4S Champion
•1997- KB Boxer
•1998-Chakan Plant
2000-2016
•2001- Bajaj Pulsar
•2005-Bajaj Avenger DTSi, Platina
•2010-Bajaj Pulsar 135
•2012- tie up with Kawasaki
•2015- Pulsar 200NS
•2016- Bajaj V ‘’the invincible”
Evolution

5. Tackling Environmental change
Govt Banned imports and gave
license to manufacture
Opened automobile sector for
foreign investment
1959
1980s
Tremendous Increase in
Competition .
1982
R & D investment , advertising
investment
1998
Joint ventures, Ex: hero honda,
Kinetic motors
Increase in Production
Capabilities, decrease in
demand and supply difference
1997
From 20 Lakh pending order to
15 lakh models per year.
New CEO, fast restructuring and focus on new
models, manufacturing processes, supply chain,
etc..
1996
Low Cost Manufacturing
1990
2000-
onwards

6. • More models available
to choose from
Industry attractiveness
leading to more
competition thus more
models available in market.
Firm Analysis – Porter’s 5 Forces
Competitive
Rivalry
(High)
Threat of
New
Entrants
(Low)
Bargaining
Power of
Buyers
(High)
Threat of
Substitute
(High)
Bargaining
Power of
Supplier
(Low)
Making it unattractive to new firms
Due to availability of other means of transport
Due to high initial costs and established players
Due to presence of high no of suppliers
Due to too many competing products
• Product Innovation
• Fuel efficient models
• Increased service Centres
• Finance Options
• Govt. opened automobile market
• Industry Attractiveness
• Foreign collaborations

7. Resource Based View
Tangible
Resources
Intangible
Resources
Human
Resources
Financial
Resource
Physical
Resources
• Plant
• Land
• Retail
Footprint
• Brand
• Patents
• Technology
& Innovation
• Work Culture
• Hire
employee
from
institution
like IITs, NITs,
IIMs, IIFT
• Training
programme
for employee
• Encouraged
the
employee to
explore the
unknown
Capabilities
• Manufacturing
• Marketing
• New Product
Development
• Design
VRIN ANALYSIS
V R I N
Brand    
Patents    
R & D    
Plants 
HR  

8. Recommendations : Ansoff’s
Matrix
Products
Market
Existing New
ExistingNew
Product
Development
Market
Penetration
Market
Development Diversification
Avenger Sturdy Bikes
Electric Bikes
Scooters
Pulsar Quadricycle
Market share
Marketgrowth
High Low
HighLow
Question marksStars
Cash cows Dogs
Growth Share BCG
Matrix

9. Thank You!!
Q&A!