Bajaj- A Strategic Decision
Today I read the news about Bajaj, they take the decision to stop their one Brand which was NO. 1 before few years in their market, yes I m taking about Bajaj scooter, today they announce that they do not have any plan to produce scooter in future and they will finish the production of scooter till 31st march 2010.
But I do not surprise by this news because, since last few years Bajaj do not good position in scooter market, Honda overtake them in scooter market, or they do not want to do anything, this is big strategic change by Bajaj and wake up time of Hero Honda, because they know that new companies are coming in scooter market, Mahindra one of the example. And when new player will come competition will increase, and profit margin will down so it can be the strategic change by Bajaj, now they can focus only on bikes and use their resource in different ways which they were in scooter market. If we see the last quarter sales Bajaj growth was 98% whereas Hero Honda only was 34%. So may be competition will increase by this move and consumer will get the benefit.
Wednesday, December 9, 2009
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