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Bajaj Auto Ltd.

Transition (Lewis Model)

GROUP Q

Overview and Key Highlights


Company Overview
Bajaj Auto is a major India Automobile manufacturer. It is India's largest andthe world's 4th largest two- and three-wheeler maker
It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (near Pune), Waluj and Pantnagar in Uttaranchal
Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer

Major Highlights
1971 - three-wheeler goods carrier
1972 Launch of scooters , 1977- 1 lac vehicles per year

1998 - Kawasaki Bajaj Caliber, Legend (India's first four-stroke scooter), 1995- 1 mn vehicles in a year
2001 - Eliminator, Pulsar
2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
2006 - Bajaj Platina, 2007 - Bajaj Pulsar-200

Unfreezing
Drivers

Shift in consumer preference towards newer


products, such as bikes
Declining market share

To not move into newer bikes


Unprofitable!

Imminent change in leadership

Capable technical backbone with strong grasp on


consumer requirements
Inhibitors

To phase out the scooter business


Unthinkable!

Unrecognized need due to current leadership


Lack of future targets and ambition
Limited growth in new products, limited R&D
infrastructure
3

Movement
Factor 1

Develop new behaviors, and attitudes through changes in organizational structures and processes
Toyota Production
System

Attitude?
Trends?

Technology?
Factor 2

Identifying with new role models and values


Leadership?
I operate, I maintain?

Factor 3

Succession of Senior
Management

Scanning the environment for new relevant information


Collaboration with
Renault

Acquisitions?
Collaborations?

JV with Kawasaki
4

Re-Freezing
Factor 1

Helping members to integrate the new point of view


Integrating KTM
workforce, in
future

Performance Measurement?
New Training?
Integrating Acquisitions?

Factor 2

Use supporting mechanisms that reinforce the new organizational state

Setting up SBUs?
New Brand Positioning?

Independent Brand
Positioning

Applicability of Action Research Model


Bajaj Auto should be an aspiration working place for people who would like to see themselves in top positions
someday. Rajiv Bajaj, MD, Bajaj Auto (June 2010)

In the late 1990s, due to a shift in consumer preferences and demand from scooters to motorcycles, Bajaj Autos sales and market shares
started declining and posed a challenge of sustenance for the company
By early 2000s, motorcycle sales surpassed that of scooters and Bajaj Auto lost its market share to Hero Honda
Change in consumer preferences from scooter to motorcycles; evolved demographics in the target market

Business Line Quotes Mr Bajaj has allotted five years apiece on prioritising important activities. For instance, between 1990 and 1995,
his focus area was manufacturing with a view to improving quality and lowering costs.Even while this goal was achieved, he realised that
by 1995, nobody wanted to buy the company's geared scooter. The time had come to think afresh.

Bajaj Sunny, an
unsuccessful change?

From a 4-6 month waiting period for a Bajaj Super


bought on Cash Down in 1983
to
Same day delivery of Bajaj Pulsar 220 bought on loan in
2014

Cash Cow: Bajaj Threewheelers


Way forward: Bajaj
Quadricycles (Cars)!
6

References
http://swaminomics.org/rahul-vs-rajiv-the-bajaj-saga/
http://forbesindia.com/blog/the-technocapitalist/dad-i-want-to-run-our-company-too/
http://www.coolavenues.com/strategy-zone/company-analysis%3A-bajaj-auto-ltd.
https://www.scribd.com/doc/98872925/Case-Study-of-Bajaj-Auto-Ltd

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