Strategies Used In The Past
Bajaj strategic plan was to establish in three main areas viz establish volume leadership, establish cost leadership and reduce the respond time and bring in.
Volume leadership:
• Retain the high reliability and work on easing out immediate availability.
• Vast expansion supported by Quality circles, kanban, just-in-time and high automation
• Expanded the dealer network to reach town, cities and even villages
• Improve the genuine spares availability
• Reduce the prices drastically to match local specious parts
• Cashed on branding, image to penetrate into rural areas than competitors
• Spread the range M-30, M-50, M-80 in mopeds and motorbike segment to offer products to match or
strongly compete with limited range of competitors.
• Came up with easy financing scheme and several occasional discounts to establish volume leadership
Cost Leadership:
• Macro value addition chain was exploited through out the companies operation but also spread within
micro value addition chain i.e. dealers and distributors, through free test rides, registration and insurance
schemes.
• Macro value addition suppliers offering them hi-tech automation, by keeping and improving the
productivity.
• After exploiting value addition micro and macro chain further establishing the cost leadership, cost
cutting exercises, was adopted to ultimately reduce the cost of 58% to a target of 55%.
Response Time:
• Total transparency within the dealer, distribution and works through online
• Delivery within 24 hours of any variant within the circle
• Improves ecstatic and added variants to support the wide range
• Make available any variant, any range or access to definite information directly. Improve to customers
perception and loyalty to product with widening the base and strengthening the brand loyalty
• Example: Bajaj scooter customers change over to Bajaj motorbikes
• Company to see the position well in advance and turn the position without any damage.
Tools of Implementations:
Research and Development:
• The Company released India's first 4-stroke scooter, Legend, in July, 1998. This is also the world's first 4-stroke geared scooter. The scooter comfortably meets the year 2000 emission norms. The product is well accepted in the market for its excellent drive ability and good fuel economy. Eight patents have been applied for covering new inventions generated during the development stage of this new scooter
• Styling upgrades for Chetak, Super and Classic scooters have been introduced in the market
• Caliber, the new 4-stroke motorcycle developed with technical assistance from Kawasaki, Japan, was introduced in the market in June, 1998. It has been extremely well received in the market for its styling, drive ability and good fuel economy.
• Development of a new 4-stroke scooter - Saffire - with modern styling is complete. Similarly, the company is working on 4-stroke engines for its M-80 step through motorcycle and three wheelers. All these vehicles are expected to be introduced in the market during the current year.
The Company has further strengthened its relationship with Kawasaki, Kubota and Tokyo R & D of Japan and Cagiva of Italy. Technical interactions with these partners have enhanced the R & D and product development capabilities of the company.
Many new technologically advanced products will continuously roll out in the next one and half to two years.
Cost cutting:
A) At Akurdi Plant:
• Replacement of 40/60 W incandescent bulbs by 7 W PL lamps in office building.
• Installation of automatic temperature controllers in standard room and water chilling plant at general canteen and use of solar energy systems for canteens and paint shop.
• Use of thermosol fuel activities for LDO for better combustion efficiency.
• Installation of auto control panels for minimum use of garden lights, fountain and road lights.
B) At Waluj Plant :
• Reduction of avoidable losses (replacement of capacitors, switch-off of lights, fans, pumps, cooling water pumps etc. at identified locations during identified hours).
• Fine turning of equipment (thereopac, changed temperature setting of air conditioning system etc.)
• Plant voltage optimisation.
Productivity, Safety, Health & Environment:
• The company has received National Productivity Award for Automobile Industry instituted by National Productivity Council consistently for six years from 1991-92. The award fro the latest year 1996-97 was presented to the company in December, 1998 in New Delhi.
• Provision of safety equipment, creation of safe working conditions and adoption of safe working practices are continuously monitored, resulting in considerable lowering of frequency rate of accidents.
• The Company's department of Industrial Medicine and Hygiene, during the year under review, carried out medical examination of the employees apart from its regular duties of treatment in accident cases, emergency medical care, etc.
• The company's Akurdi plant successfully implemented Environment Management System (EMS) and was given the ISO 14001 certificate. The company's Waluj plant already holds this certificate. This makes Bajaj Auto the first largest multi-locational manufacturing company having both the ISO 9001 and ISO 14001 certificates.
Bajaj strategic plan was to establish in three main areas viz establish volume leadership, establish cost leadership and reduce the respond time and bring in.
Volume leadership:
• Retain the high reliability and work on easing out immediate availability.
• Vast expansion supported by Quality circles, kanban, just-in-time and high automation
• Expanded the dealer network to reach town, cities and even villages
• Improve the genuine spares availability
• Reduce the prices drastically to match local specious parts
• Cashed on branding, image to penetrate into rural areas than competitors
• Spread the range M-30, M-50, M-80 in mopeds and motorbike segment to offer products to match or
strongly compete with limited range of competitors.
• Came up with easy financing scheme and several occasional discounts to establish volume leadership
Cost Leadership:
• Macro value addition chain was exploited through out the companies operation but also spread within
micro value addition chain i.e. dealers and distributors, through free test rides, registration and insurance
schemes.
• Macro value addition suppliers offering them hi-tech automation, by keeping and improving the
productivity.
• After exploiting value addition micro and macro chain further establishing the cost leadership, cost
cutting exercises, was adopted to ultimately reduce the cost of 58% to a target of 55%.
Response Time:
• Total transparency within the dealer, distribution and works through online
• Delivery within 24 hours of any variant within the circle
• Improves ecstatic and added variants to support the wide range
• Make available any variant, any range or access to definite information directly. Improve to customers
perception and loyalty to product with widening the base and strengthening the brand loyalty
• Example: Bajaj scooter customers change over to Bajaj motorbikes
• Company to see the position well in advance and turn the position without any damage.
Tools of Implementations:
Research and Development:
• The Company released India's first 4-stroke scooter, Legend, in July, 1998. This is also the world's first 4-stroke geared scooter. The scooter comfortably meets the year 2000 emission norms. The product is well accepted in the market for its excellent drive ability and good fuel economy. Eight patents have been applied for covering new inventions generated during the development stage of this new scooter
• Styling upgrades for Chetak, Super and Classic scooters have been introduced in the market
• Caliber, the new 4-stroke motorcycle developed with technical assistance from Kawasaki, Japan, was introduced in the market in June, 1998. It has been extremely well received in the market for its styling, drive ability and good fuel economy.
• Development of a new 4-stroke scooter - Saffire - with modern styling is complete. Similarly, the company is working on 4-stroke engines for its M-80 step through motorcycle and three wheelers. All these vehicles are expected to be introduced in the market during the current year.
The Company has further strengthened its relationship with Kawasaki, Kubota and Tokyo R & D of Japan and Cagiva of Italy. Technical interactions with these partners have enhanced the R & D and product development capabilities of the company.
Many new technologically advanced products will continuously roll out in the next one and half to two years.
Cost cutting:
A) At Akurdi Plant:
• Replacement of 40/60 W incandescent bulbs by 7 W PL lamps in office building.
• Installation of automatic temperature controllers in standard room and water chilling plant at general canteen and use of solar energy systems for canteens and paint shop.
• Use of thermosol fuel activities for LDO for better combustion efficiency.
• Installation of auto control panels for minimum use of garden lights, fountain and road lights.
B) At Waluj Plant :
• Reduction of avoidable losses (replacement of capacitors, switch-off of lights, fans, pumps, cooling water pumps etc. at identified locations during identified hours).
• Fine turning of equipment (thereopac, changed temperature setting of air conditioning system etc.)
• Plant voltage optimisation.
Productivity, Safety, Health & Environment:
• The company has received National Productivity Award for Automobile Industry instituted by National Productivity Council consistently for six years from 1991-92. The award fro the latest year 1996-97 was presented to the company in December, 1998 in New Delhi.
• Provision of safety equipment, creation of safe working conditions and adoption of safe working practices are continuously monitored, resulting in considerable lowering of frequency rate of accidents.
• The Company's department of Industrial Medicine and Hygiene, during the year under review, carried out medical examination of the employees apart from its regular duties of treatment in accident cases, emergency medical care, etc.
• The company's Akurdi plant successfully implemented Environment Management System (EMS) and was given the ISO 14001 certificate. The company's Waluj plant already holds this certificate. This makes Bajaj Auto the first largest multi-locational manufacturing company having both the ISO 9001 and ISO 14001 certificates.