On completion of the analysis of this case, students would be able to: analyze how external environmental factors impact the product market matrix; evaluate growth choices open to an incumbent business and how they create and capture value; and develop corporate strategies of a multi-business firm to respond to external dynamics.
The case presents an opportunity to examine the timing of entry of an incumbent firm in a new market segment. Bajaj Auto, a well-established Indian two-wheeler and three-wheeler manufacturer and exporter, chose to enter the electric vehicle space much later than technology start-ups and other incumbents. After three years, the company’s business in this segment might appear successful, but it is not in a position to dislodge the market leader, Ola Electric. The case focuses on the dilemma of market entry timing, positioning of a new product, managing an interlinked product portfolio, the need to develop a robust ecosystem of partners and dealing with unpredictable export markets.
The case can be discussed in a session of graduate-level business strategy/corporate strategy/international business course that deals with the growth strategies of an incumbent.
Teaching notes are available for educators only.
CSS 11: Strategy.
