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Bajaj Auto was founded in 1956 during the height of India's independence and it has continued to develop by presenting quality and unique products to the market. The establishment of the company has majored in the production of the two-wheeler Autos that includes scooters and motorcycles. In this regard, the company controls significant share of the two-wheeler machines. Analysis of the external environment has shown that competition is stiff in the market with Honda leading the market share for motorcycles and it beneficial for the organization to advance in its weaknesses to increase profitability. The internal strength has highlighted ideal attributes of the organization like experienced management and R & D technology as the best attributes for overcoming the threats and weaknesses. Adoption of ideal strategies have been considered as attributes leading to development and the most significant strategy and choice is centric brand strategy and brand positioning strategy. The choice of enacting these strategies has ensured that the customer perception about the product is highly eliminated and the attribute of the poisoning has the effect of changing product design and measure. This has resulted in establishment of significant market share for the product thereby leading to increase in market performance. Centric strategy has also enhanced development by focusing on the changes in brand names and consideration of adopting different marketing options. Furthermore, the company has adopted the choice of concentrating in the production of motorcycles while disregarding scooters. Based on the above provisions, it is evident that Bajaj motors can emerge as the global leader in motorcycles by adopting the changes suggested as the weaknesses in the company.
TABLE OF CONTENTS
THE EXTERNAL ENVIRONMENT
The case analysis for the external working environment for Bajaj motors has revealed that the company has significant share of the market in the industry and this has enhanced its performance. Founded in 1956 in India, it has continued to grow and develop because of the aspects of dedication, determination and the resourcefulness of the workers at the company. The conduction of external analysis of the company environment considers the contribution of the factors that influences the aspects of company strategies (Bhattacharya, 2009). Some of the most significant external factors for consideration are the competitors and the customers. Bajaj Motors has specialized in the manufacture of different commodities that include Motorcycle, scooter, Mopeds and Electric Two-wheeler and their market share is given as follows
From the above establishment, it is ideal that the leading product for the company is the manufacture of motorcycles and scooters because they have the largest market shares. In view of these developments, the company should consider the establishment of options that will increase satisfaction of the customers and this involves addition of the satisfaction of the following.
1. Gear pack
2. Model height flexibility
4. Rider safety
5. Strong headlights and engines
6. Tubeless tires
The consideration of the external environment also considers the contributions of the competitors in the industry and these include the following.
In view of the above, the managers must ensure that ideal policies are enacted to overcome competition and increase the market share. Finally, the attributes of external environment can be summarized through the consideration of economic growth which is higher with regard to the establishment of disposable income (Margaret Herdeck, 2008). Additionally, Bajaj motors faces high threats because of new entrants but its opportunities are high in the market thereby enhancing significant company development.
THE INTERNAL ENVIRONMENT
The establishment of the internal assessment of the organization is highlighted through the consideration of SWOT analysis and the consecution of this analysis reveals the following internal aspects of the organization.
The organization has highly experienced management with good history that have extensively adopted the usage of R & D program. Furthermore, the company is capable of enhancing ideal product design and developments that can be distributed through the extensive distribution network (Roll, 2005). With the development of large scale manufacturing, the company has attained high economies of scale and economies scope that has enabled it to export to the other international markets.
Despite the astute performance and establishment of the company, the company is characterized by significant weaknesses like the failure to employ excess cash for long term development. Analysis has shown that Baja is not a global player because its qualities cannot match those of the global competitors like Honda. Finally, the company has the greatest weakness of not being globally recognized despite being in the industry for a long period of time.
The threat of competitors is significant because they have adopted the attributes of technology. The import market has also flooded the market thereby posing a significant threat to the Baja brands of motorcycles. Some of the significant competitors like TATA Nano and other mini-compact cars have merged with better brands in the two-wheeler industry and this has ensured that the costs and prices of production in the market are being irregular thereby reducing the profit margin of the company.
The company has opportunities for development because the analysis has shown that the two-wheeler industry has a double digit growth hence more opportunities for growth. There is an exiting untapped market for the motorcycles above 180 cc and there is more movement towards the higher-end motorcycles. Furthermore, there is a growing market for gearless and trend scooterette and scooters market which is the company industry (Krishna, 2009). Finally, another opportunity for the company lies in the growing world demand for the entry level motorcycles that have significant demands in the emerging markets.
THE ORGANIZATIONAL PURPOSE
STRATEGY ANALYSIS AND CHOICE
Analysis of the findings about Bajaj motors has revealed that the company has involved the usage of various strategies and choices in the market with the aim of enhancing their performance. According to these findings, brand positioning is one of the ideal strategies that have helped the organization to increase its performance and this was done by the Rajiv Bajaj when he introduced the changes in the organizational structure. Redefining brand strategy provides ideal attribute of positioning to the brand by focusing on the elements and the perceptions of the customers (Bhattacharya, 2009). Brand positioning involves the aspect of changing the perceptions of the customers and their consideration of the product by adopting different name for the motorcycles and this regard considers the element of enacting changes to the Bajaj products with the aim of creating a new perception of quality in the minds of the customers. Brand positioning has the impact of increasing sales because it leads to the increase in the market share. Another significant strategy adopted by the company was the centric strategy that resulted in the establishment of more stable motor cycle's market and abolition of the scooters because their sale was significantly declining thereby increasing losses margin to the company. The centric strategy was adopted by the company with the aim of countering the activities and the threats of the competitors because the aspects of competition resulted in the significant decline in the sales values of the organization (Roll, 2005). Therefore, the adoption of brand positioning strategy and centric strategy provided ideal incentives leading to the advancement in the performance of Bajaj motors.
The establishment of the above strategies for the company was characterized by significant choices that had to be made by the managers of the organizations. Considering the composition of the market, the two-wheeler motors have continued to prevail and this involved the aspects of scooter and motorcycles. The choice of eliminating the services of scooter was extremely beneficial because it enhanced increase in the aspects of production and sales. Further more, brand positioning strategy is a choice that involves establishment of deal brands that include discover and pulsar. In reality, these two brands have significantly enhanced increase in the sales and profitability of the company.
Fred R. David (2011). Strategic Management: Concepts and cases 13th ed.