A LIVE PROJECT ON SUPPLY-CHAIN MANAGEMENT OF Bajaj Auto Ltd. SUBMITTED TO: MR. Shankar narayan Submitted By D.SRIKANTH ADAMSMITH INSTITUTE OF MANAGMENT S.R NAGAR, HYDERABAD 1 INDEX ORGANISATION DETAIL NAME OF COMPANY: “Bajaj Auto Ltd.” INCEPTION, GROWTH OF THE COMPANY: The Bajaj Group was founded in 1926 by Jamnalal Bajaj and now consists of 27 companies. In 1945, Jamnalal Bajaj had formed M/s Bachraj Trading Corporation Private Limited, the flagship company, to sell imported two-wheele
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  ALIVE PROJECTONSUPPLY-CHAIN MANAGEMENTOFBajaj Auto Ltd.SUBMITTED TO: MR. Shankar narayan Submitted ByD.SRIKANTH ADAMSMITH INSTITUTE OF MANAGMENTS.R NAGAR, HYDERABAD 1  INDEXORGANISATION DETAIL   NAME OF COMPANY: “Bajaj Auto Ltd.” INCEPTION, GROWTH OF THE COMPANY: The Bajaj Group was founded in 1926 by Jamnalal Bajaj and now consists of 27companies. In 1945, Jamnalal Bajaj had formed M/s Bachraj Trading Corporation PrivateLimited, the flagship company, to sell imported two-wheelers and three-wheelers. Thecompany acquired a license from the government in 1959 to manufacture these vehiclesand went public the next year. By 1977, the company saw its plant rolling out 100,000vehicles in a single year. In another nine years, Bajaj Auto could produce 500,000vehicles in a year. The present Chairman of the Bajaj group, Rahul Bajaj, took charge of the business in 1965. He was the first licensee of the Indian make of the Italian Vespascooter. Japanese and Italian scooter companies began entering the Indian market in theearly 1980s.Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country. By 1994-95, Bajaj was racing to beat Honda, Suzuki andKawasaki in the two-wheeler segment internationally. By 1997, Bajaj faced toughcompetition in the domestic market and its market share stood at 40.5%. Under theleadership of Rahul Bajaj, the turnover of Bajaj Auto has gone up from Rs.72 million toRs.46.16 billion (USD 936 million), its product portfolio has expanded from one to manyand the brand has found a global market. Bajaj as a brand is well-known across severalcountries in Latin America, Africa, Middle East, South and South East Asia.The company has a network of 498 dealers and over 1,500 authorised servicecenters and 162 exclusive three-wheeler dealers spread across the country. Around 1,400rural outlets have been created in towns with populations of 25,000 and below. 2  The current dealer network of Baja is servicing all these outlets. Bajaj isconvinced that the real impetus of future two-wheeler growth will come from upcountryrural India. Bajaj Auto has defined specialist dealerships for rural markets, called 'RuralDealerships'. During the year 2008-09, twenty new rural dealers became operational.Bajaj has identified a segment of customers called 'Probikers', who are knowledgeableabout motorbikes and appreciative of contemporary technology. They are trendsetters andvery choosy about what they ride. Hence, Probikers need to be addressed in a meaningfulway that goes beyond the product.Product/Service line:Bajaj Auto is in the process of setting up a chain of retail stores across the countryexclusively for high-end, performance bikes. These stores are called “Bajaj Probiking .Fifty two such stores have been opened across the India. Catering to demand in thissector requires a strong and effective distribution network as consumers are moredemanding and expect delivery on time. Early delivery is a cause of delight for customers. With such vast global and Indian rural presence, designing an efficientdistribution system becomes a complex task even for a company like Bajaj Auto. Lot of time and effort goes into designing a strategy based efficient distribution system. Product Segmentation   The company classifies motorcycles into three segments, based on consumer categories and approximate price points. These are:  Entry Segment: These are typically 100 cc motorcycles at a price point in theneighbourhood of Rs.35000. Bajaj Auto has a presence in this segment through thePlatina. Here, Bajaj Auto has been a major player and despite an overall market de-growth, it accounted for 34% of this segment in India in 2008-09.  Executive segment: This largely comprises 100 cc to 135 cc motorcycles, priced between Rs.40000 to Rs.50000. Bajaj Auto has two brands in this segment, namely XCDand Discover.These are sleek, high performance bikes with price points in excess of Rs.50000.They are present here with their flagship brand, the Pulsar and cruiser, the Avenger. Theydominate this space with a domestic market share of more than 47%. 3  Competitors Key competitors (3 wheeler) Bajaj manufactures commercial vehicles for passenger carrier as well as goods carrier other players in the three-wheeler segment in India are Mahindra and Mahindra , Piaggioand atul auto. Bajaj is Facing tough competition by aggressively launched Mahindra gio Organization Structure 4

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Sep 18, 2017
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