Ghoshal et al.

Management > Asian Management >  Lectures > Independent Research > Ghoshal et al. > Rahul and Bajaj > Fighting back > Leadership

Leadership

Every task in the company was evaluated on the basis of three parameters: time, quality and cost.

Cost-leadership was maintained by streamlining the workforce and designing lower costs into models. Extra features were added that increased costs by Rs100, but designers felt that these additions customers would pay Rs1000 more.

Bajaj Auto developed a scooter which was the cheapest on the market, without compromising on quality.

Raviv believed that more money spent on branding, R&D and people was needed to keep the company successful. The best employees were promoted to middle management, deemed "bright stars".

The company doubled its dealer network in 1998 and set up a large number of service stations, as Bajaj two and three-wheelers had a long running life. Dealer conferences were organised to exchange ideas on successful selling strategies and identify areas of improvement.

Bajaj Auto searched for the best recruits who had specialist knowledge and experience, such as engineers and mechanics, who were trained to deal with customers.

The company's servicing network and spare parts delivery system was an important competitive advantage, as any Bajaj auto could be fixed anywhere and was easily reachable.

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