Corporate Strategy Case Study

Kinetic Group (India): Gearing up for the Future

OR

Abstract:
Since the early 2000s, motorcycles were the fastest moving segment of the Indian two-wheeler industry and in 2002-2003 it accounted for about 76% of the overall market. In order to take advantage of this trend many players, traditionally scooter and moped makers, had entered this market, dominated by Hero Honda, TVS Motors and Bajaj Auto (which together controlled about 86% of the motorcycle segment). One such player was Kinetic Group, which had been a dominant player in the gearless scooters and mopeds segment. Since 2001, Kinetic had launched a number of motorcycles for customers wanting different value propositions: price; fuel efficiency; design; and after sales service etc. However, at the end of 2003, it had less than 2% of the motorcycle market.

Pedagogical Objectives:

• To discuss how Kinetic plans to increase its market share in motorcycles, in addition to strengthening its portfolio of scooters and mopeds

Keywords : Kinetic Group, India two-wheeler industry, Joint ventures and alliances, Research and development, Competitive growth strategies, Competitive Strategies Case Study, Brand building, Global expansion strategy, Motorcycles, Market penetration, Market share, Organic and inorganic growth, Product design, Product segmentation and positioning