Executive summary

An Innovative company can apply new ideas faster than its competitors and
surprise its customers by offering products that makes them realize its
actual need and then consume it. There are considerable evidences
specifying the positive impact of innovation in the automobile industry;
however, corresponding research is lacking on the two-wheeler industry
which is growing at a steady pace. The main purpose of this assignment is
to explore the role of innovation in a two-wheeler company and to analyze
its influence in the growth of such companies.
Starting with a focus on the theme and ideas involved in marketing of its
products, the study revolves around the trends of innovation in the core
business and its contribution to Bajaj Auto Limited‘s (BAL) success. Central
to this assignment are the innovative ideas employed by BAL to maintain a
balanced portfolio followed by the comparison of the BAL‘s sales growth
with the Indian two-wheeler industry over the years and also the increase in
market share of BAL in the corresponding period. Innovation is a
complicated process and needs to be managed well so as to escapade its
potential and take an edge in competition.
The analysis is based upon secondary data from various sources of
references like, journals, newspaper reports, internet and articles. The
results from the case of the company have been used together with a
theoretical framework to explain the factual patterns. From just taking a cue
from the market trend to calibrating a product‘s operational efficiency, Bajaj
Auto was not only able to uphold themselves in the market but also able to
compete with the leader in the two-wheeler segment in India. The world
had a lot to offer and Bajaj gladly grabbed the opportunity by perfectly
managing innovation in all its business activities. Being spontaneous and
proactive in understanding the changing needs of the market has made this
achievable for BAL.
Conclusively, the findings suggest that Innovation is justifying to be a
critical entity in a business firm and managing it effectively supports the
company in leaping ahead in terms of competition.
PESTLE ANALYSIS

Aim of the analysis:

• Find out the current external factors affecting an organization.
• Identify the external factors that may change in the future.
• Exploit the changes (opportunities) or defend against them (threads)
better than competitors would do.

1. It is reported that its total sales of the

POLITICAL products distributes equally well within the
country and outside the country
FACTORS

2. Has received assistance for development of

vehicles propelled by alternate energy sources
from Indian Government.

3. It aimed at gaining integrated, phased and

self-sustained growth of the company to flourish
outsideIndia.
 1. Inflation, recession and currency are three
ECONOMIC important economic factors that Bajaj Auto Ltd
noticed.
FACTORS
2. The economy of the company fell down
tremendously around 2000 due to ignorance
towards customers.

3. It laid easy installment rules with less interest

rate thus makes more segment people to go for
its product products.

1. As the purchasing power of the common has

SOCIAL risen in various markets across the world the
purchasing of these transport necessities have
FACTORS gone up.

2. Purchasing these products prove to be

beneficial for the common man as their price
levels are comparably suitable for the common
mans pockets.

3. Possessing these products(two wheelers) are

considered as status symbols in many societies.
 1. Bajaj Auto Ltd has invested largely in its product
TECHNO- research and development field and thus its
products are more consumer friendly.
LOGICAL
FACTORS 2.One of the most innovative and technologically
advancements could be seen in its two-wheeler
section that gives a great experience to the bikers.

3. Aiming at best fuel economy of transport

1. Bajaj has been in a number of patent cases with

LEGAL players like Honda, Hero and Yamaha
FACTORS

2. The regulations in the country like India are

governed by the Ministry of Shipping, Road
Transport and Highways.

3. The Principal instrument governing the

automotive sector in India is the MOTOR VEHICLES
along with the CENTRAL MOTOR VEHICLES RULES
1989 in India. (CMVR). These acts governs the
emission norms and safety norms.
 1. Physical conditions like environmental situation
ENVIRON- affect the use of automobile in an economy.
MENTAL
FACTORS 2. Physical infrastructure such as roads and
bridges affect the use of vehicles.

3. Increasing number of vehicles on the road also

increases the pollution. Best option could be the
use of bio-fuel or electric vehicles.

SWOT ANALYSIS
STRENGTHS

- Most diversified revenue stream in Indian Two wheeler industry.

- Very strong in-house R & D and have exclusive contracts with few world renowned R & D organizations.

- Capability to produce cost effective products.

WEAKNESS

Over dependence on scooters. This segment is shrinking.

- Bajaj unlike Hero Honda and TVS does not have a continuous flow of technology from foreign partner.

- The in-house content ofmanufacturing is high in comparison to other players in the industry
OPPORTUNITIES

- New Products introduction may help Bajaj Auto to improve market share

- Bajaj is a known brand name in Indian Automobile Sector.

-They can capitalize this through quality, cost and delivery..

THREATS

Operating margins under pressure due to cost ofCAT/CON as well as low volumes

- Scooter segment is shrinking - Company does not have a proven four- stroke technology in segments
other than motorcycle to meet present challenges.

- The profitability may suffer due to depletion of large amount of non-operating income
CONCLUSION
Researches and practices within the spectrum of innovation in companies provide clear support for the
importance of innovation in a company‘s success. It is evident from the findings that, it is the innovative
culture which was ingrained in Bajaj Auto‘s system; in addition to the understanding of the change a
process that has helped Bajaj set new standards in all projects it was venturing into. The picture that
emerges here is the management of innovation to exploit its potential and BAL is seemed to have
managed a unique way of handling its product portfolio through innovative measures across the
enterprise to improve product profitability which differentiates it from its competitors. The key to
success lies in delighting customers by delivering total solutions by being proactive and BAL has just did
that through its innovative portfolio management. The company‘s success showcases the dominance of
Indian two-wheeler industry within automobiles in recent times and its growing trend by Innovative
capability thereby showcasing the value that innovation offers a company. ―As the saying goes, more
opportunities come through listening than telling‖ and Bajaj has seemed to have listened to what the
market needed and eventually has excelled in its offerings so as to succeed in all of its projects by means
of a tough entity called ―Innovation‖. Increased sales and increase in market share came along the ride
and the company is now giving the leader, Hero Honda Motors all the run for its money for the No.1
position. This takes the view that innovation as part of a company's business culture is seen as a
dynamic engine for both its own growth and that of the industry‘s as is evident from the case of Bajaj
auto Ltd and the Indian two-wheeler industry