Two Wheeler Automobile Industry TVS Motor Company Limited

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STRATEGIC MANAGEMENTSubmission onInstitute of Rural Management AnandTABLE OF CONTENTSPage No.

1. Introduction51.1 Industry52. Macro Environment Analysis62.1 Pestel Framework62.2 Analysis of the Immediate Environment92.2.1 Factor market condition92.2.2 Demand condition92.2.3 Related and supporting industries102.2.4 Competitive Rivalry112.3 Key Drivers of Change112.3.1 Short term (within 5 years)112.3.2 Long term (> 5 years)112.4 Porter's Five Forces Framework122.5 Strategic Group Analysis132.5.1 Motorcycle segment132.5.2 Scooterettes segment132.5.3 Mopeds segment143. COMPANY ANALYSIS153.1 Mission and Vision153.1.1 Mission153.1.2 Vision163.2 Strategic Business Units163.3 Resource Analysis173.4 Strengths and Weaknesses193.5 SBU Strategies213.6 Corporate-SBU roles and relationships223.7 Strategies, direction and methods233.8 Study of organization structure and suggestions for structural changes to implement strategies243.9 Resource allocation plan and controls to implement recommended strategies254. Conclusion26LIST OF ANNEXURESS. No. TitleIPrices and Duties: Two wheelersIIProjected demand for selected vehiclesIIIVehicle Owners Availing of Loan from Financial InstitutionsIVAuto Finance (June, 2002)VSIAM report on sales of automobiles April - August 2004VITVS: Financial performance 2003-04VIIMarket Shares of Major Players in Motorcycle marketVIIIMotorcycle Market Segmentation - Price BasedIXTVS: New product launchesXR & DXITVS: Value Chain AnalysisXIITwo wheeler Exports from India, 2003-04XIIIChange in composition of two wheeler market over 5 yearsXIVTVS: Turnover break up in the year 2002-03XVMarket Share: MotorcyclesXVIMarket Share: MopedsXVIIMarket Share: ScooterettesXVIIIParenting MatrixXIXStrategy ClockXXStrategic Group Analysis - MotorcyclesXXIStrategic Group Analysis - ScooterettesXXIIStrategic Group Analysis - MopedsXXIIIStrategy Development DirectionsXXIVBCG MatrixXXVTVS: Market Share (%)XXVITVS: Changing product profile; Capacity of 4 stroke vehicles in total vehiclesXXVIITVS: ExportsXXVIIITVS: Balance sheet as at 31-03-2004XXIX TVS: Profit and loss account for the year ended 31-03-2004TWO- WHEELER AUTOMOBILE INDUSTRY1.

IntroductionThe two-wheeler industry in India has to a great extent been shaped by the evolution of the industrial policy of the country. The two-wheeler industry in the nineties was characterized by an increase in the number of brands available in the market which caused firms to compete on the basis of product features and increase in sales volumes in the motorcycle...