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Ghoshal et al.Management > Asian Management > Lectures > Independent Research > Ghoshal et al. > Rahul and Bajaj
Rahul and BajajRahul Bajaj went out of his way to ensure "his family stayed together through thick and thin" - the same could be said of his company, that he was the paternalistic figurehead who was the strong binding force of the company. Taking over the company in 1968, Rahul ran the firm during a time when the country was run based on a five-year forward planning process and nothing could be manufactured without a licence from the government. The company was not allowed to produce beyond a certain capacity, even when there was a long waiting list for a Bajaj scooter. In the mid-1980s Japanese firms entered the market and looked for joint venture partners. For example, Honda teamed up with the Munjal family. Capacity constraints held them at bay until 1990 when they had established themselves enough to seriously compete with Bajaj. The competition had access to new technologies, whereas Bajaj had limited R&D and no partners to access new models or technologies. This resulted in a declining share. In 1985 the market share dropped to 33%. In 1998 the market was even more complicated:
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