SWOT Analysis FOR BAJAJ Strengths: Highly experienced management. Product design and development capabilities.

Extensive R & D focus. Widespread distribution network. High performance products across all categories.(Total unit sales 1mn, Turnover 5000 crores) Great financial support network (For financing the automobile) High economies of scale.

Weaknesses: Still has no established brand to match Hero Honda's Splendor in commuter segmen t. Not a global player in spite of huge volumes. Not a globally recognizable brand Threats: The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Margins getting squeezed from both the directions (Price as well as Cost) TATA Ace is a serious competition for the three-wheeler cargo segment.

Opportunities: Double-digit growth in two-wheeler market. Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles. The growing gearless trendy scooters and scooterette market. Growing world demand for entry-level motorcycles especially in emerging markets.

The Industry Analysis - Five Forces Analysis Industry: Automobiles: Two Wheelers Segments: Presence in all segments

Entry Barriers: Entry barriers are high. The market runs on high economies of scale and on high economies of scope. The need for technical expertise is high. Owning a strong distribution network is important and is very costly. All these make the barrier high enough to be a deterrent for new entrants. Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain man agement is a costly yet critical need.

Buyer's Bargaining Power: Buyers in automobile market have more choice to choose from and the increasing c ompetition is driving the bargaining power of customers uphill. With more models to choose from in almost all categories, the market forces have empowered the b uyers to a large extent.

Industry Rivalry: The industry rivalry is extremely high with any product being matched in a few m onths by competitor. This instinct of the industry is primarily driven by the te chnical capabilities acquired over years of gestation under the technical collab oration with international players.

Substitutes: There is no perfect substitute to this industry. Also, if there is any substitut e to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of tr ansport, do never directly compete or come in consideration while selecting a tw o-wheeler, cycles do never even compete with the low entry level moped for even this choice comes at a comparatively higher economic potential.

Summarizing the industry analysis, it can be said that the two-wheeler market is attractive as it scores well on three out of five categories.

BCG Matrix- BAJAJ Stars Pulsar 150 and 180 cc

Question mark

XCD 125 Discover Pulsar 200 and 220 cc blade Cows Platina Ct 100 Dogs Avenger Liquidate kristal High

Relative market share

Low