Competitive Position

Only available on StudyMode
  • Topic: Motorcycle, Honda, TVS Motors
  • Pages : 8 (2266 words )
  • Download(s) : 148
  • Published : May 15, 2013
Open Document
Text Preview
TABLE OF CONTENTS

INTRODUCTION………………………………………………………………02 1.0 COMPETITIVE POSITION………………………………………….02 2.0 MARKET ENTRY……………………………………………………..04 2.1 REASON FOR ENTERING INTO THE USA MARKET……………………..04 2.2 MARKET ATTRACTIVENESS……………………………………………………..06 2.3.1 TARGET MARKET…………………………………………………………………08 2.3.2 PROJECT SALES AND OTHER FINANCIAL MATTERS……………….08 2.3.3 OPERATIONS……………………………………………………………………….10 2.3.4 HUMAN RESOURSES …………………………………………………………..10 2.3.5 MODE OF ENTRY………………………………………………………………….11 2.3.6 MARKET COMPAIGN …………………………………………………………..11 3.0 REFERENCES ……………………………………………………………12

INTRODUCTION
In this assignment we tried to look into the Baja Auto’s own position in Indian domestic market and how it has performed in last year compare to local rivals. In addition, we suggest company to invest directly in America’s automobile industry as America and India is more or less similar in terms of operating multinational organisations. As, it is a long term investment and high risk strategy for company, we clinically analysed new market scenario and different aspects of it. 1.0 Competitive Position

Bajaj Auto is ranked as the world’s fourth largest two and three wheelers production company. It is in two wheelers and three wheelers Indian market since 1945 and recognised brand across Asia, Middle Eastern countries, Latin America. Bajaj Auto shares 26.70% of two wheelers market in India, fairly behind Hero Honda Motors which has 41.35% Indian customers, and ahead of TVS Motor Company which holds 18.14%. But when it comes to three wheelers vehicles, Bajaj Auto clearly control the majority of the market with 58.60%, much ahead then Piaggio Vehicles 32.70%. Bajaj’s closest competitor in two wheelers market is Hero Honda Motors. Hero Honda sold 3.72 million two wheelers units, almost double then Bajaj, who managed to sold 1.28 million units. Bajaj Auto is the country’s largest exporter of two- and three-wheelers. During 2008-2009, Bajaj Auto’s international sales achieved an all-time high of 772,519 units of two and three wheelers, representing a growth of 25% over the previous year. (Sources: Automobile Industry report -2012, India). Though, there is a huge difference in terms of selling units between three major players of India’s two wheelers, their growth rate is almost similar to each other. Hero Honda Motors enjoys 15.4% growth in 2012, and it was followed by TVS Motor and Bajaj Auto with 13.3% and 13.2% respectively. (Sources: Annual reports of Bajaj Auto, Hero Honda Motors and TVS Motors-2012). In plant wise capacity Bajaj Auto clearly out plays its competitors. Bajaj Auto has 4 active plants compare to 3 of each for Hero Honda motors and TVS Motors. Therefore Bajaj has upper hand in terms of number of units’ productions. Bajaj Auto’s plants are capable of producing 5 million units of vehicles compares to Hero Honda’s 4.75 million and TVS’ 4 .50 million of units. (Sources: Automobile Industry report-2012, India).

Adopted from Automobile Industry report-2012, India.

2.0 Market Entry
Bajaj Auto is highly recognised company throughout the world and has vastly experienced management team. In addition, it has its own technology labs, engineering colleges and very strong labour power. Apart from having a fair amount of domestic market share, it is a leading exporter of India. Bajaj is famous for manufacturing two and three wheelers which have good fuel efficiency and strong outer body and comes in very cheap prise compares to other manufacturers. It is right time for the company to move forward and make its own base in well developed country like The USA, which help company to reduce the good amount of money spent on exporting its products to Latin America and Africa and moreover, America itself has huge crowd who are struggling with current worldwide economic downfall and looking for cheap available options. 2.1 Reason for Entering Into the USA...
tracking img