ACKNOWLEDGEMENT

This thesis work was carried by Dinesh Chandrasekar and Chaudhry Saqib Mehmood as part
of completion of the Master degree in Management of Logistics and Innovation in University
of Gavle, Gavle, Sweden. We would like to sincerely thank the supervisor, Prof. Lars
Bengtsson for his continued support and contributions to our work. 3
ABSTRACT
An Innovative company can apply new thinking faster than its competitors or surprise its
customers by offering products that makes the customers first realize its need and then
consume it. There are substantial evidence stating the positive impact of innovation in the
automotive industry; however, corresponding research is lacking on the two-wheeler
industry which is growing at a healthy pace. The main purpose of this thesis is to explore
the role of innovation in a two-wheeler company and to analyse its influence in the growth
of such companies. Two research questions are addressed: What role does innovation play
in the firms' product portfolio management? Does innovation lead to increased sales and
market share for a company?
The thesis is based on a case study of Bajaj Auto Ltd (BAL). Starting with a focus on the
theme and motives involved in marketing of its products, the study revolves around the
trends of innovation in the core business and its contribution to BALs success. Central to
this report is the innovative ways employed by BAL to maintain a balanced portfolio followed
by the comparison of the BALs sales growth with the Indian two-wheeler industry over the
years and also the increase in market share of BAL in the same period. The descriptive part
of Bajaj Auto Ltd is based on interviews via e-mail with management staffs and
employees plus revenue data of the company. In addition the analysis builds upon
secondary data from various sources of references like, journals, news paper reports,
internet and articles.
The results from the case company have been used together with a theoretical framework to
explain the empirical patterns. From just taking a cue from the market trend to fine tuning a
products operational efficiency, Bajaj Auto was not only able to sustain in the market but is
able to compete with the leader in the two-wheeler segment in India. The world had a lot of
offer and Bajaj gladly grabbed the opportunity by precisely managing innovation in all its
business activities. Being intuitive and proactive in understanding the changing needs of the
market has made this possible for BAL. Conclusively, the findings suggest that Innovation is
proving to be a critical entity in a business firm and managing it