Bajaj Auto: the Indian Motorcycle Manufacturer Internationalizes its Business

Vincent F.

Order the writing of a tailor-made Marketing theories and strategies Case study

Free quote online

Case study Format .docx

Bajaj Auto: the Indian Motorcycle Manufacturer Internationalizes its Business

Download

Read an extract

Themes

Bajaj Auto, internationalization process, market strategy, motorcycle, western motorcycle market, european market

Reader
Abstract
Contents
Extract

Abstract

Being one of the largest motorcycle manufacturers, the best internationalization theory to describe Bajaj would be Emerging Country Multinational theory (EMNC). One of the key components in the EMNC theory is that a company chooses where to enter next by where the highest acceptability will be while the ability to acquire resources needed in those countries is low. Bajaj used this theory when purchasing offices in Bangladesh, Sri Lanka, and South Africa, where the need for motorcycles was high and by purchasing offices they could oversee the production and monitor the resources used in order to keep the cost low.

Which Theory is most representative of Bajaj's internationalization process?
What are the advantages and disadvantages of Bajaj's international focus market strategy?
Would it be relevant for Bajaj to enter the North American or western European motorcycle market?

Get this table of contents for free after login.

Extract

[...] Thus Bajaj seeks to conquer the Western market through European companies. Bajaj Auto would have to change its models completely to penetrate the European market, which would require it to increase its production costs. However, with its current market linked to emerging countries that want low cost vehicles, Bajaj Auto can also produce low cost but large quantities which is a considerable advantage. Then markets as Africa are perfect to export motorcycles instead of western world market. References Bajaj Auto. [...]

[...] (2019). Analyst Presentation. Retrieved on September 22, from https://www.bajajauto.com/investors/analyst-presentation [HYPERLINK: https://www.bajajauto.com/investors/analyst-presentation] Bajaj Auto. (2019). Annual Reports. Retrieved on September 22, from https://www.bajajauto.com/investors/annual-reports Bajaj Auto. (2019). Bajaj Auto Website. Retrieved on September 19, from https://www.bajajauto.com/ [HYPERLINK: https://www.bajajauto.com/] Bajaj Auto. (2019). The Company. Retrieved on September 20, from https://www.bajajauto.com/about-us/the-company [HYPERLINK: https://www.bajajauto.com/about-us/the-company] Bajaj Auto. (2019). [...]

[...] When we know that Bajaj Auto is one of the largest motorcycle manufacturers in the world but is not present in the Western market, we can wonder about this decision. The Bajaj Auto company would have an interest in penetrating the Western market in order to acquire new customers and consolidate its status as one of the leaders of the automotive and motorcycle world? In the automotive world, the Western market highly appreciates comfortable vehicles for traveling, for example. The policy of Bajaj Auto since its inception and its creation in 1945 is very different from what is common in Europe. [...]

[...] Performance Reports. Retrieved on September 22, from https://www.bajajauto.com/investors/performance-reports [HYPERLINK: https://www.bajajauto.com/investors/performance-reports] Planetoscope. (2012). Salaire moyen en France. Retrieved on September from https://www.planetoscope.com/comptes-publics/1804-salaire-moyen-en-france.html [HYPERLINK: https://www.planetoscope.com/comptes-publics/1804-salaire-moyen-en-france.html] Statistiques Mondiales Écologiques En Temps Réel*." Planetoscope, www.planetoscope.com/comptes-publics/1804-salaire-moyen-en-france.html. The Times of India. (2018). India's per capita income grows by 8.6% to Rs 1.13 lakh in FY18. Retrieved on September from https://timesofindia.indiatimes.com/business/india-business/indias-per-capita-income-grows [HYPERLINK: https://timesofindia.indiatimes.com/business/india-business/indias-per-capita-income-grows-by-8-6-to-rs-1-13-lakh-in-fy18/articleshow/64403580.cms]by-8-6-to-rs-1-13-lakh-in-fy18/articleshow/64403580.cms [HYPERLINK: https://timesofindia.indiatimes.com/business/india-business/indias-per-capita-income-grows-by-8-6-to-rs-1-13-lakh-in-fy18/articleshow/64403580.cms] [HYPERLINK: https://timesofindia.indiatimes.com/business/india-business/indias-per-capita-income-grows-by-8-6-to-rs-1-13-lakh-in-fy18/articleshow/64403580.cms] Vasudev, Sunaina. "Export Advantage for Bajaj Auto." Business Standard, Business-Standard Jan www.business-standard.com/article/markets/export-advantage-for-bajaj-auto-112011000095_1.html. Wikipedia. (2019). Bajaj Auto. [...]

[...] Bajaj Auto: the Indian Motorcycle Manufacturer Internationalizes its Business Question Which Theory is most representative of Bajaj's internationalization process? Being one of the largest motorcycle manufacturers, the best internationalization theory to describe Bajaj would be Emerging Country Multinational theory (EMNC). One of the key components in the EMNC theory is that a company chooses where to enter next by where the highest acceptability will be while the ability to acquire resources needed in those countries is low. Bajaj used this theory when purchasing offices in Bangladesh, Sri Lanka, and South Africa, where the need for motorcycles was high and by purchasing offices, they could oversee the production and monitor the resources used in order to keep the cost low. [...]

docx