Case study 1: Bajaj Auto Ltd.
Your task : Analyze the position of Bajaj in the current market set-up, evaluating its strengths, weaknesses, threats and opportunities available. Bajaj Auto Ltd. (BAL) is one of the oldest and the largest manufacturer of automobiles in India and has been the market leader in scooters. In 1990s, the near monopolistic market structure, perhaps, lulled the company into being complacent and they gave way to the competitors like Hero Honda and TVS. Hero Honda and TVS Suzuki tied up with foreign majors to bring in the latest in terms of aesthetics and technology, and Bajaj failed to gauge the changing tastes of consumers. In 1990s, there was a marked shift in customer preference from scooters to motorcycles. Bajaj found itself at a loss here, as this was largely an un chartered territory.
Bajaj Auto is the flagship of the Bajaj Group of Companies. Bajaj is currently India's largest two- and three wheeler company.
The directors present their second annual report and the audited statements of accounts for the year ended 31 March 2009.
The highlights are as under: -
2007-08 2008-09 (Nos.) (Nos.)
Chakan 4-wheeler plant-The 'Lite' range of 4 wheeler vehicles, both in Passenger and Cargo segments of the industry, are under re-design, to sharpen the competitive positioning of the products. The Cargo version code named ' PV 1500' is likely to be launched in 2011.
The Techno-economic feasibility for the Passenger 4 wheeler will be evaluated by Bajaj Renault-Nissan for a final decision, leading to firming up of the co-operation parameters among partners and a suitable JV Agreement. Research & development and technology absorption:
During the year under review, BAL continued to invest...
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