Case Study
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Racing past the Barriers
The Success of the Apache Motorcycle in India
Submitted to: Mr. Ahsan Durrani
Submitted By: Badar Salam Kayani 1848 17th March 2013
Summary -
This case study is about TVS Motor Company, the third largest two-wheeler manufacturer in India.
TVS is among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group.
1. What were the former characteristics of the market in India?
Former Characteristics of Indian Market:
* Size: Two-wheelers have been the main means of transport in India accounting for over 70% of the vehicle population.
* Growth Rate: Modest 0.1million vehicles in early 1970s.
* Supplier to the Industry (Their relative power): local producers successfully lobbied with the government to maintain the status quo. * It was marketing heaven for the existing producers.
* Competitive substitute products ( their relative power): In the early 1990s, Bajaj, the leading two-wheeler company had a waiting list that was 26 times the company’s annual output.
* Manufacturing and distribution: Production capacities were limited, a market where licenses were controlled and were few and far between,
* Social and economic conditions affecting the industry: Customers waited uncomplainingly for long periods (extending to a year and beyond) after full payment to collect their set of wheels. * It wasn’t uncommon to see an entire family of four (or even five) carrying several bags making their way around the busy roads on the two wheels * Foreign exchange deficit,
* Barriers to entry: Imports were restricted, foreign investment was not allowed.
2. How was the market changing? * Indian government opened up the market in the early 1990s, * It was the opening up
Racing past the Barriers
The Success of the Apache Motorcycle in India
Submitted to: Mr. Ahsan Durrani
Submitted By: Badar Salam Kayani 1848 17th March 2013
Summary -
This case study is about TVS Motor Company, the third largest two-wheeler manufacturer in India.
TVS is among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group.
1. What were the former characteristics of the market in India?
Former Characteristics of Indian Market:
* Size: Two-wheelers have been the main means of transport in India accounting for over 70% of the vehicle population.
* Growth Rate: Modest 0.1million vehicles in early 1970s.
* Supplier to the Industry (Their relative power): local producers successfully lobbied with the government to maintain the status quo. * It was marketing heaven for the existing producers.
* Competitive substitute products ( their relative power): In the early 1990s, Bajaj, the leading two-wheeler company had a waiting list that was 26 times the company’s annual output.
* Manufacturing and distribution: Production capacities were limited, a market where licenses were controlled and were few and far between,
* Social and economic conditions affecting the industry: Customers waited uncomplainingly for long periods (extending to a year and beyond) after full payment to collect their set of wheels. * It wasn’t uncommon to see an entire family of four (or even five) carrying several bags making their way around the busy roads on the two wheels * Foreign exchange deficit,
* Barriers to entry: Imports were restricted, foreign investment was not allowed.
2. How was the market changing? * Indian government opened up the market in the early 1990s, * It was the opening up