MODULE END STRATEGIC MANAGEMENT

PRN - 1152190298
Vibhu VIKRAMADITYA

Bajaj: "Distinctly Ahead"

Bajaj Auto was established on 29 November 1945 as M/s

Bachraj Trading Corporation Private Limited. It started off by
selling imported two- and three-wheelers in India. In 1959, it
obtained a license from the Government to manufacture two-
wheelers and three-wheelers. In the year 1945 Bajaj family was
into business of trading automobile spare parts and wanted to
move into manufacturing. Considering their knowledge in the
automobile industry and the income of large number of people
in India being less they decided to manufacture two wheelers.
Subsequently, first plant for manufacturing two wheelers was
setup in Akurdi, Pune. At that time only two players were in
manufacturing of two wheelers in India namely Royal Enfield
and Lambretta scooters. Bajaj got license to manufacture 48,000
motorcycles annually due to license raj. For better product Bajaj
got into technical collaboration with Piaggio, Italy. Bajaj started
selling motorcycles and vespa 150 scooters under the brand
name vespa which belonged to Piaggio and became popular
very soon. It has dominated the hearts, minds and the market of
india for the longest period of time as an automobile company.
This success is mostly attributed to the philosophy of the
company, its management and work methodology has led to
continuous innovation, growth and a formation of a competitive
company which has sustained the test of time.

SWOT ANALYSIS

Strengths:

*Extensive research and development focus and highly

experienced player in the motorcycle segment

*Widespread distribution network of Bajaj Auto across India

* Excellent brand presence and marketing in India make Bajaj

Auto a popular company

* The first company in india to extend TPM policy onto

vendors and non-manufacturing process too.

*The Bajaj has state of the art supply chain management which
Involves its own vendors and the procurement-to-
payment logistics, as the manufacturing to selling
process, or the order to cash system throughout india.
Weakness:

* No growth in the performance bikes sector like major

international brands and sports bikes & cruisers

* One dimensional approach towards targeting of consumer base

* despite high production, still not a major global force owing to

almost no marketing expenditure outside india.

Opportunities:

* Creation of a cheaper market product to target the rural sector

of india.

* Diving into the performance sector and creating powerful as

well as sports bike to target urban sector of india.

*creation of a new consumer base as upper class to earn big

bucks.
* Huge scope of marketing in the foreign sector, to understand
the market abroad, what the consumer wants, and to produce
that product to get foreign segments of market too.

Threats:

* Due to the opening of most countries to trade and financial

investments, most manufacturers are moving to low income
countries to take advantage of cheap labor, Bajaj should
continuously look to cut unwanted costs while keeping quality
to keep up with competition.

* Companies which are in competition are spending more on

advertisement and marketing than Bajaj, which has won them a
significant part of the domestic market. Although Bajaj is still
leading it should be varying of this.

*As india becomes more and more open to international trade

with less tariffs, more competition will pour in, so innovation
becomes important if it still wants to dominate the market.