What is Bajaj’s strategy in the Indian motorcycle industry? And that of TVS?
Bajaj Autos was initially a Scooter manufacturer, which later shifted its business model towards light weight motorcycles after joining hands with Kawasaki. A company known for its 250cc+ bikes, which were able to secure a 60% share of the market. However, it was assessed that, partnership between Bajaj and Kawasaki was not a joint venture like hero Honda, there was no sharing onequity between the two parties. Furthermore, it can be evaluated that, Bajaj spent huge amounts of capital in its Research and development projects. Which enabled the company to develop a commercialized Digital Twin-Spark Ignition (DTS-i) system and be the first to introduce such a system in two-wheeler. Therefore, enablingit to produce quicker and efficient combustion engines, giving better power, low emission and better fuel economy to the customers. Therefore, it can be determined, that Bajaj’s core strategy was to find new and innovate ways to gain a competitive advantage over its competitors available in the market. Furthermore, it planned to abide by the emission regulations imposed by the regulatory authorities, which would increase the appeal of its products among the customers and could have a favorable impact on their sale revenues. Bajaj’s senior management decided to target the economic segment and produce 125cc motorcycles. So that, they could gain potential benefit from the increase in the appeal of 125cc bikes by the customers available in the market. However, it can be assessed that, Bajaj manufactured many bikes with different caliber engine capacities. However, due to the recent shift of customers to 125cc engine capacity bikes, Bajaj had spent heavily on its research and development project to find new innovative ways to enhance its bike’s power, efficiency and fuel economy keeping under consideration the customer’s shift towards style and design of bike under the 125cc caliber engine capacity. It would enhance its products appeal among the customers and result in increasing the revenues generated through the sale of these products in the market. It planned to bring the same enthusiasm that its previous scooters had, with respect to reliability and low emissions levels, keeping under consideration, the road and economic conditions of India and its people. Which would have a favorable impact on the environment as well as provide its users with high quality and technologically advanced products, which would enhance their economies of scale.
On the other hand, TVS motors initially manufactured Mopeds, which enabled the company to dominate the Moped market historically. In light of the recent change in customer’s perception, TVS motors decided to target the economical motorcycle segment. For which, they formed a joint venture with Suzuki motors, owning 33.7% of its Equity, which was a technological leader in 750cc+ bikes and had significant share of the market in that segment. However, TVS licensed engine technology from AVL using, the technical expertise of itsexpert staff, developed variable timingIntelligent (CC-VTi) technology. Furthermore, the venture between TVs and Suzuki enabled, TVS Motors to introduce India’s first ever 100cc bike in the market in 1984…………………….
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