Bajaj Auto Ltd: Re-aligning Manufacturing Strategy*

Details

Case Code : CLBS107
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 02 Pages
Price : Rs. 100

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Key words:

Strategy, Competition, Manufacturing strategy, Bajaj Auto, Two wheelers, Scooters, Motorcycles, Akurdi, Waluj, Pantnagar

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

This micro case study is regarding the realignment of the manufacturing strategy by Bajaj Auto Ltd. in light of one of its manufacturing facilities becoming commercially unviable and the availability of production capacities and capabilities at other locations.

Introduction Bajaj Auto Ltd. (Bajaj) is one of the leading players in the Indian two wheeler automobile industry. It was established in 1945 and was the market leader in two-wheelers, i.e. scooters, till the trend changed in favor of motorcycles in the late 1990's. In 2007, the company was considering the decision to close down its manufacturing plant at Akurdi in Pune as a part of fine-tuning its manufacturing strategy and for competitive reasons. The Akurdi plant, established in 1960, was the company's oldest facility. However, the dynamics of competition and the demands of operational efficiencies had necessitated the change to close down the manufacturing plant.

The company intended to shift the production of its scooter, the Kristal, from Akurdi to its Waluj facility at Aurangabad...

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