MNB3701 Assignment 3 PORTFOLIO (ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED

Well-structured MNB3701 Assignment 3 PORTFOLIO (ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!)... Assessment 3 Module code: MNB3701 Module name: Principles of Global Business Management Student name: Student number: Date of Submission: Please note that handwritten/scanned documents will be awarded a zero mark. Turnitin is enabled for this assessment. Please accept the EULA to activate Turnitin. If you do not accept the EULA, you will be awarded a zero mark. NO EXTENSIONS will be granted on the submission of this assessment, and emailed submissions WILL NOT BE MARKED. THE SUBMISSION TAB FOR THIS ASSESSMENT OPENS ON 20 OCTOBER 2025 at 11:00 AND CLOSES ON 27 OCTOBER 2025 at 23:00 2 Read through the case study below entitled “Bajaj Auto (a) – catering to the African market” and answer the questions that follow. Bajaj Auto – catering to the African market “The World’s Favourite Indian” – tagline for Bajaj Auto (BA), India’s largest two-wheeler exporter. With ongoing exports to around 75 countries, BA’s position looked quite promising, despite the adverse effects of COVID-19 worldwide. In December 2020, the firm had sold 348,173 units of two-wheelers and three-wheelers, of which 221,603 units (around 63%) were exported. Besides being present in other regions of the world, BA’s foray into the African market, with its entry-level Boxer motorcycle, has been very successful. The firm was growing from strength to strength in this market. Known for their lightweight design, ruggedness, good build quality, versatility, and durability, BA motorcycles have been successfully plying the roads of many countries in Africa, such as Kenya, Namibia, and Nigeria. Besides motorcycles, BA also sold three-wheeler rickshaws and small commercial vehicles in African countries. It had also unveiled a compact quadricycle aimed at intra-city transportation in South Africa. The African market was one of the fastest-growing consumer markets globally. Many African countries presented lucrative opportunities for BA. While being confident of the continued success of BA’s brand positioning and value proposition in the African market, Rakesh Sharma, the Executive Director of BA, was also aware of the multiple challenges that the firm faced in these markets. From the onslaught of competition from fellow Indian manufacturers, such as TVS and Hero MotoCorp, to a continuous threat from Chinese and Japanese firms. International supply chain and logistical issues, and economic and legal challenges were a reality in various African countries. These were a few of the obstacles that Sharma faced in the African market. In addition to these critical dimensions, Sharma had to keep a constant eye on the pulse of African consumers. Any misreading of their preferences could lead to detrimental effects. Would Sharma be able to rightly assess the multitude of challenges that BA was facing in the African Market to continue its successful journey? In what follows, the company background, the African automobile market, the African consumer, the company’s challenges and successes are explained to answer this question. Company background BA was a part of the Bajaj group of companies, which was among the top 10 business houses in India. This family-owned group was founded in the year 1926 by Jamnalal Bajaj. It comprised 34 companies covering various industries, spanning automobiles, home appliances, lighting, iron and steel, insurance, travel and finance. Instituted in 1945 by financial year (FY) 2021, BA had an annual turnover of US$3.5bn. With three state-of-the-art manufacturing plants across India, boasting an annual manufacturing capacity of 5 million units, BA was ranked as the world’s fourth-largest manufacturer of three-wheeler and two-wheeler vehicles. Rahul Bajaj, the Chairman of the group till May 2021, took charge of the 3 business in 1965. Under his leadership, the turnover of BA increased from INR 72 million to INR 120 billion as the firm expanded its product portfolio and initiated its export operations. In 2005, Rahul’s son Rajiv Bajaj became the Managing Director of BA. Rajiv had very ambitious strategic growth plans for BA. He had introduced a new range of bikes (e.g. Pulsar) and had enhanced BA’s foray into several countries in Latin America, Africa, the Middle East, South and Southeast Asia. BA operated on the pillars of innovation through robust research and development. Its research team was bigger than the industry average. Rahul had left BA’s chairpersonship to his cousin, Niraj Bajaj, in May 2021. BA’s operations worldwide were facilitated through 66 global distributors spread across more than 75 countries. Through its distribution network, the firm commanded a 26% market share of the global two-wheeler market and a 76% market share of the global three-wheeler market. In 2007, BA had acquired around a 14% stake in Austrian bike manufacturer KTM, which had increased to 48% over time. BA acquired Husqvarna, a Swedish motorcycle maker, to rapidly improve its product range and quality. British bike maker Triumph had partnered with BA to develop a new range of mid-capacity motorcycles. Sharma elaborated, “As far as Triumph is concerned, we are focusing mainly on product development. The two teams, Triumph Team and Bajaj Team, are in regular discussion with each other, and research work is on”. In FY2021, which had witnessed the adverse impact of COVID-19, BA shipped 1,796,518 two-wheeler units, down 3.9% from FY2020, when 1,869,220 two-wheeler units were shipped. BA still accounted for almost 60% of India’s annual motorcycle and three-wheeler exports. This percentage accounted for 52% of the total units manufactured in BA’s plants during FY2021, and it had earned the firm INR 126.87 billion from the overseas market. Over the past decade, BA has cumulatively exported 18 million vehicles and generated over US$14 billion. The company claimed that it was among the most visible Indian brands worldwide and that over 80% of its exports came from markets where it enjoyed the first or second-highest market share position. Highlighting the importance of exports, Sharma informed, “Export, which this month (May 2021) also crossed 200,000 units, is a substantive order book which we have to keep servicing. So, it is because of the export business that we keep moving, and overall, we don’t feel the need to close any of our three plants”. Furthermore, BA had announced a significant investment of INR 6.5bn to fulfil the rising demand for its products globally by constructing a fourth plant in India at Chakan, Maharashtra, for its premium motorcycle brand portfolio. Sharma explained, “For the premium segment, particularly from international markets, the demand for our collaborator KTM is huge, and to service them and the electric vehicles, we announced a new plant a few months back, and its work is on track.” Sharma had been with BA since October 2007. He was an alumnus of the prestigious Indian Institute of Management (IIM) – Ahmedabad. After spending more than two decades in the paint industry, he shifted to the automobile industry around fifteen years ago. With the mission of building a global business for BA, Sharma knew that he was working “in the face of intense competition during VUCA [volatility, uncertainty, complexity, and ambiguity] times, particularly in the automotive industry, which makes each day challenging and exhilarating.” He relished, ‘‘Working in India and across the world with different cultures as it continually provides inspirational moments and learning experiences”. The African automobile market Two-wheelers 4 Motorcycles were a prominent mode of commuting in Africa. People relied on motorcycles not only for commuting but also for hauling cargo. The African consumers wanted well-built, reliable two-wheeled machines. Due to the inadequate public transportation system and growing urbanisation, Africa witnessed an increasing import of two-wheelers across the region. The African two-wheeler market was forecasted to cross US$9bn by 2021 and was projected to grow further at a compound annual growth rate (CAGR) of 12% until 2025. This growth was fuelled by the increasing penetration of Chinese and Indian low-cost two-wheelers in this market. The two-wheeler market in Africa could be segmented into motorcycles, scooters and mopeds. Among these three, the motorcycle segment was the largest segment by volume in 2019. There were multiple reasons for the popularity of motorcycles in Africa – its larger fuel carrying capacity, better manoeuvrability on the rugged road conditions across the region, better off-roading performance, ability to avoid traffic congestion, low prices, quicker acceleration, better engine capacity, large fuel tank, vast wheelbase, easy maintenance and better fuel economy in the face of rising fuel prices. Moreover, the booming motorcycle taxi business in African countries further augmented demand for motorcycles in the continent. The two-wheeler market in Africa was also segmented on engine capacity into various segments – up to 125cc, 126 cc-250cc, 251 cc- 500cc, and above 500cc. The two-wheelers falling in the up-to-125cc segment accounted for the largest market share in 2019. The up-to-125cc segment was expected to maintain its dominant position in the coming years. Mainly in the markets of Egypt, Nigeria, Kenya, Morocco, Uganda, Ethiopia, Algeria, Tanzania, South Africa and Angola. Egypt accounted for the largest share in the African two-wheeler market, primarily due to the lack of a public transportation system, an increasing number of female riders, easy financing options and growth in the country’s per capita income. Egypt was followed by Nigeria, which accounted for the second-largest share in the African two-wheeler market in 2019. The popularity of the two-wheelers in Nigeria was due to an inadequate public intra-city transport system, increasing economic activity, and rising demand for last-mile delivery options. Due to the growing population in the African continent, which, according to the World Bank, would reach 2.8 billion by 2060, the inadequate and poorly developed public transport system in many African countries was under tremendous pressure. Consequently, two-wheelers were becoming an essential medium for transportation in urban and rural settlements in these countries. Besides BA, other major players operating in the African two-wheeler market were Hero MotoCorp Limited (Hero) and TVS Motor Company (TVS) from India. Honda Motor Co. Ltd. (Honda), Yamaha Motor Co. Ltd (Yamaha) and Suzuki from Japan, Italian company Piaggio & C. S.p.A. (Piaggio), Taiwan’s SYM and various Chinese manufacturers. In this highly competitive market, all the significant players invested in innovations to maximise the returns on their investments. The focus was also on mergers and collaborations to increase the customer base as well as expand the sales and distribution networks in the African two-wheeler market. Three-wheelers The size of the global market for three-wheelers, commonly known as auto-rickshaw/tuk-tuk, was more than US$21bn. It was projected to exhibit a CAGR of more than 12% by 2026. The growing demand for three-wheelers globally has been backed by their low price, easy manoeuvrability and efficient performance. Additionally, rapid population expansion, rising 5 demand for transportation, inadequate availability of public transportation, underdeveloped transport and logistics infrastructure, low per capita income, increasing unemployment, and growing requirement for last-mile delivery of products were a few of the factors that had made three-wheelers quite popular in the African market. Three-wheelers provided an efficient, quick and economical way of transportation in the areas where buses, trucks and taxis could not effectively penetrate. Nigeria, Tanzania, Mozambique and Egypt emerged as the favourite markets for the leading three-wheeler manufacturers in Africa. The three-wheeler market was divided into passenger and load carriers based on the vehicle type. The market was further bifurcated into electric, petrol, diesel, and compressed natural gas (CNG) run vehicles. Electric three-wheelers were expected to hold the largest market share by 2024, especially in developing countries, due to the rising adoption of clean energy sources in providing a pollution-free, affordable commute. In the three-wheeler market, besides BA, the other major players from India were Mahindra and Mahindra Limited, TVS, Scooters India Limited and Atul Auto Limited. The Indian firms had seen a rise in exports by 40% in FY19 and 49% during FY20. This was due to the economic recovery of important export markets in Africa. The Indian firms were facing tough competition from the Chinese firms – Chongqing Zongshen Tricycle Manufacturing Co. Ltd. (Zongshen) and Ningbo Dowedo International Trade Co. Ltd. Piaggio from Italy was also a significant competitor. The dominance of the three-wheeler market required the noteworthy players to form strategic alliances for technology partnerships for developing modern features and other technological advancements. A glimpse of African consumers A Boston Consulting Group study cautioned businesspeople not to consider the continent of Africa as a single market instinctively. They recommended that Africa be seen as an entity that comprises many markets that differ in their economic and retail development levels. Despite differences, there were also prominent commonalities among the consumers of this market. Studies have shown that consumers in Africa are optimistic about the future and have retained their appetite for buying new things, notwithstanding the economic uncertainty surrounding them. The consumer expenditure in the African countries was expected to reach US$2.1 by 2025 and US$2.5 by 2030. Though these findings provided evidence of Africa’s immense economic promise, many African countries were recovering from the economic downturn of 2016–2017 and were struggling with double-digit inflation. Certain larger economies, like Angola and Egypt, were also showing reduced optimism levels. African consumers equated happiness with their ability to buy new things. However, they did not accept just anything; they were focused on the’ quality aspects of products. The idea that quality mattered more than quantity resonated with many African consumers. Quality for these consumers meant how long an item would last. With an average per capita income lower by a factor of 3.5 from consumers in Asia, lower by a factor of 15 from consumers in Europe, and lower by a factor of 25 from consumers in North America, African consumers could not afford to buy things that are damaged quickly. The perceived link between quality and durability substantially impacted African consumers’ brand preferences. Studies showed that African consumers were more brand conscious than people in other regions. These consumers believed that the brands they used said something about who they were and where they fit in. They gave credence to those brands that had endured for generations. However, the brand loyalties of these consumers were not inflexible and could 6 change over a while. This meant that newer brands could make inroads in Africa if they were seen as superior and were marketed effectively. Experts opined that a good channel strategy in African markets should consider the specifics of the category and the country where the product is being sold. Internet accessibility varied from country to country in Africa. While only 40 to 49% of Angolans, Egyptians and South Africans had internet access, 60 to 70% of the consumers in Ethiopia and Nigeria had net connectivity. Kenya was one of Africa’s most technologically advanced countries, with more than 80% of its urban population having internet access. In most countries, the total share of internet-connected consumers dropped considerably when people in rural areas were factored in. Many African consumers, who had net connectivity, connected to the internet with a smartphone. Connections were typically over a 3 G network, which provided less than one-tenth the speed of 4 G connections. This would impact the companies while designing their websites and e-commerce services for consumers in Africa. Despite the slow internet speed, about one in four African consumers searched online for price information before going to a retail store. One in five consumers used the internet to search for product specifications and product information. In certain African countries, like Kenya and Ethiopia, social media sites became important sources of influence in offline shopping. The internet accessibility information was crucial for BA, as it had planned to strengthen its bond with youth through experiential online initiatives. BA’s massive international export operations had made it necessary to have an online presence accessible across the globe. It enabled them to know what was said about their brand and products and spread relevant product and brand awareness. Bajaj Auto’s success in the African markets BA’s foray into the African market was a reaction to the invasion of Chinese motorcycles in India in 2005. Though Chinese motorcycles were 30% cheaper, they could not significantly dent the Indian market because of their quality issues. This encouraged BA to attack the Chinese motorcycles in the African market. African consumers at that time had two choices – either to buy expensive Japanese motorcycles or purchase more economical Chinese offerings. Chinese motorcycles came as completely knocked down (CKD) units that had to be taken to a mechanic for assembly. BA launched its fully assembled motorcycle priced more than the Chinese models but less than the Japanese ones. By creating a system of dealerships, service centres and trained mechanics, besides developing a relationship with its consumers, BA established a strong brand presence and became the market leader in many African markets. Sharma elucidated, “Our international business is not a B2B business. It is not that we sell to some distributors and forget about it. It is a B2B2C business”. Sturdy built quality and competitive pricing due to frugal engineering made BA’s offerings the most popular in the less-than-150cc category of motorcycles. BA’s entry-level brand of motorcycle – Boxer, though 25% more expensive than available Chinese offerings, became a runaway success in many African countries such as Kenya, Namibia and Nigeria. The reason for Boxer’s success was the buyers’ perception of it offering a better value proposition, though at a higher price, as Sharma asserted, “Sure, we took time to prove our proposition, but the message was loud and clear: if you buy a Bajaj Boxer, you will get value over a period of time.” The Boxer was considered a rugged, minimalist motorcycle, characterised by its lightweight design and good build quality, as well as 7 unmatched versatility and durability. Many markets across Africa used it as a motorcycle taxi, locally known as a boda-boda. Over time, BA had installed over ten assembly facilities in Africa, wherein CKD units imported from India were assembled before being sold. It captured the two-wheeler market share in more than a dozen African markets, becoming either market leader or market challenger in these markets. It covered a cumulative market share of 40% of nearly 2.7 million two-wheeler units sold in these markets. By selling more than a million vehicles in these markets in the FY20, BA recorded a CAGR of 30% in the past three years. As Sharma ascertained, “Bajaj has been able to compete and win in Africa based on its product strengths, local assembly operations, quality assurance, a network of distribution partners, dealers and service centres”. He added, “With a long-term focus, a huge effort has been put in training tens of thousands of mechanics and establishing customer engagement programmes, which is yielding results”. This had resulted in the Boxer bike becoming a ubiquitous brand in these markets. The brand’s nearest competitor sold less than half of Boxer’s volume. Buoyant by its success in the African market, BA had introduced Qute. It was a quadricycle that met the European quadricycle norms and had received the European Whole Vehicle Type Approval certification. It was powered by a four-stroke, single-cylinder engine of 217 cc that produced power equivalent to a sub-250cc motorcycle. It had a top speed of 70 km per hour, suitable for an intra-city drive. Qute claimed a fuel economy of 35 km per litre of fuel. It was available in South Africa for 75,000 Rand (equivalent to US$5,300) and had seen wide popularity in the South African market due to this highly affordable price tag. BA hoped that its success in South African markets would also be emulated in other African markets. Challenges for Bajaj Auto in the African market Competitor challenges Despite having been successful in the African market, BA was well aware of the constant competitive threat from other players. Besides BA, other Indian manufacturers like TVS and Hero had also found success in the African market over the past decade. These companies were also among the leading players in many markets in Africa. TVS and Hero had seen steady growth in their two-wheeler exports over the past few years, and, like BA, these firms’ offerings were also known for good quality and competitive pricing. To further improve its competitive position in foreign markets, TVS had allied with German auto giant BMW’s motorcycle division, BMW Motorrad (BMW), to produce new products for both companies. As a part of this alliance, TVS would make and distribute BMW bikes in India, and BMW would help TVS build bikes with international standards. TVS was also one of the significant manufacturers of three-wheelers. Besides other global markets, TVS three-wheelers had also witnessed market share expansion and growth in the African markets, where customers had started to like its products. Not wanting to be left behind, in 2014, Hero appointed Markus Braunsperger as its Chief Technology Officer, whose responsibility included research and development. Braunsperger had 25 years of experience with BMW in various roles before joining Hero, which wanted to capitalise on his expertise to become the world’s largest manufacturer of motorcycles. BA was not only facing competition from fellow Indian firms; manufacturers from other countries were posing challenges too. Zongshen, a Chinese manufacturer, had made an extensive range of its products available across the African market. This range included 8 utilitarian mopeds, commuter motorcycles, retro-classic bikes, minibikes, etc. These offerings were widely popular among African consumers, enabling Zongshen to build a formidable reputation in the African market. Piaggio, the Italian conglomerate, also had a strong presence in Africa. Its offerings included models across multiple price brackets, ranging from economically priced town scooters to more expansive Moto Guzzi and Aprilia motorcycles. Piaggio’s three-wheeler was also very popular in the African market for its workhorse-like capabilities in ferrying agricultural products and household goods. These three-wheelers for the African market were manufactured in Piaggio’s Indian plant due to its price competitiveness and exported to the African markets. Japanese brands such as Yamaha and Honda also used India as an export hub for their African market. To cut down on carbon emissions, many governments in Africa were offering incentives to the buyers of electric three-wheelers. These electric three-wheelers were also exempted from various taxes to encourage their purchase. This brought competition for conventional vehicles from electric vehicle (EV) manufacturers. EkoRent from Finland had launched Nopia Ride, which was a full e-mobility service. The firm had planned to expand this service to many East African nations. Kenya Knights, a start-up, planned to import used EV -Nissan Leaf and test them for Kenyan roads. Various Chinese players dominated the African electric two-wheeler market. This was an issue for the Indian EV makers in the two-wheeler and three-wheeler space. Indian EV makers relied extensively on Chinese technical support, and even EV components were sourced from China. This made Indian EV firms less competitive; however, an Indian EV maker – One Electric Motorcycles – started exporting its electric motorcycles to Kenya despite this constraint. It also wanted to expand to other African countries in the future. The firm’s products were designed for harsh road conditions, heavy loading and high temperatures, making them popular in the African markets. Due to the highly competitive African market, BA is planning on investing in innovations to maximise returns and increase the customer base, as well as mergers or collaborations that will expand the sales and distribution networks. Market-related challenges The concerns for BA were not only due to various competitors but also because of many other factors that it encountered in the markets across Africa. An adverse currency exchange rate had hurt BA’s revenues and margins in Nigeria, which was its largest export market and accounted for two-thirds of its African exports. Added to this, there were some arbitrary rules whose implementation was bothersome for BA. In Lagos, the commercial hub of Nigeria, commercial motorcycles helped the commuters beat the traffic and have become popular. However, their excessive speeding had led to fatal road accidents, forcing the city authorities to impose a ban on commercial motorcycles and three-wheelers there. BA had exported about 40,000 to 45,000 motorcycles to Nigeria every month, and Lagos absorbed about 6% of this volume. Strict implementation of such bans would adversely affect BA. The Egyptian Government contemplated licensing three-wheelers and banning their free import because of safety concerns and their usage in various crimes. This would also adversely impact BA’s three-wheeler exports to Egypt, its second-largest market for three-wheeler exports. Nigeria and Egypt were essential markets for BA and constituted around 45% of its revenues and an even higher portion of operating profit, as these markets fetched better margins. 9 The African market was the largest export market for Indian three-wheelers, with around 0.3 million annual sales. Like other international corporations, BA would also prefer countries in Africa with a favourable tax and regulatory environment, political system stability, ample access to human and financial capital and proximity to key markets. However, the demand in many African markets was prone to continuous fluctuations because of volatility in forex rates, low dollar availability, political uncertainties, economic downturns, arbitrary legislation, etc. The depreciating value of local currency vis-à-vis the US$ in a few of BA’s export markets made India’s import costlier. In addition, a weakening Chinese Yuan was making Chinese products more competitively priced. These factors had forced BA to cut the prices of its products in various export markets. BA was also concerned about the falling share of its three-wheelers in the product mix being sold in these markets. Covid-19 challenges The unprecedented impact of COVID-19 on the world economy had created problems for BA. It was facing a shortage of shipping containers required to ship its products to various parts of the world. This problem arose due to the disruption of the fleet of ships around the globe caused by COVID-19-induced lockdowns. The bulk of container traffic was getting stuck in the Europe–China–US routes. “The fundamental issue is that the trade between China and the US and the trade between China and Europe has become very lucrative for the shippers; the shipping capacities have not increased, but the demand for containers has increased on that route, and the rates have gone up. So, everything has got sucked in by that sector”, clarified Sharma. This disruption had also caused a rise in freight costs and increased commodity prices, which had started to impact BA’s margin and forced it to raise prices across its motorcycle range by 1–3% in several markets. The international production and supply disruption due to COVID-19 caused another casualty in terms of the semiconductor shortage. As the automotive industry continued to grapple with the severe crunch in semiconductor chip availability, BA also lost half of its planned production during the July to September 2021 quarter due to the semiconductor shortage. Regarding the chip availability issue, Sharma observed, “The situation is dynamic. It might appear that supplies are improving, and then suddenly, the problem reappears. That is why we feel it is uncertain. There are other companies like Tesla that are setting up huge capacities and soaking up semiconductor supplies. This has had a ripple effect on us. So, this up and down in supplies will continue for some time”. COVID-19 had also created inventory management issues for BA. Sharma explained the complex scenario, “Due to poor offtake in April and May [2021], the industry and we are sitting on large inventory, but that is when compared to the current retail, which is low. the types of formal and informal institutions in African markets that affect Bajaj Auto’s operations. Provide ONE example for each type of institution from the case study. The experience of last year has been that as soon as the Covid situation recedes, and this time, depending on how aggressively the vaccination programme advances, there is an anticipation of a quick bounce back. the national competitive advantage theory to assess Bajaj Auto’s competitive advantage in the African market. Provide one example from the case for each aspect of the theory. That’s the reason we have not looked at aggressively reducing inventory”. Domestically, economic risk challenge Bajaj Auto faces in Nigeria and other African markets. Provide three examples of this challenge from the case. Conclude your answer by recommending strategies to manage these risks effectively. BA was facing supply chain issues at its plants in India due to Covid-19-related lockdowns imposed by state governments. It witnessed a 10–15% shortage in its workforce as many staff were either worried about coming to work due to the prevalence of Covid-19 or had returned to their villages due to lockdowns. cultural dimensions outlined by Hofstede’s framework. Then, explain how the dimensions might affect Bajaj Auto’s operations in African countries by comparing the scores for India and Nigeria. These factors adversely impacted production and shipments dedicated to the African continent. Despite these challenges, Sharma believed in the strength of the BA brand in Africa during a difficult period like Covid-19, when pay cuts had become the norm. He stated, “I would say 10 that in times like this, people like to go for real value and brands which they can trust. explicit corporate social and environmental responsibility (CSER) initiatives that Bajaj Auto can integrate into its African market operations to enhance stakeholder relations. In addition, indicate how each initiative can benefit Bajaj Auto. They do not rush to buy cheaper bikes,” he said. “The segment will be intact, but, within the segment, people will go more towards value and less towards fancy parts of the proposition,” reasoned Sharma. VRIO framework, identify and evaluate Bajaj Auto’s key resources and capabilities that provide it with a competitive advantage in the African market. Then briefly indicate the competitive implication. Regarding BA’s strategic path during such circumstances, Sharma asserted, OLI Paradigm and explain the advantages thereof. Then, apply it to Bajaj Auto’s investment strategy in Africa. Provide two examples from the case for each advantage to support your answer. “whatever we sell should make better money. We are clear this will only come if we offer something substantive to the buyer, more so during this time when people will tend to be conservative”. Notes 1. INR = Indian rupee; US$1 = INR 74.21 on June 24, 2021 2. This case is written solely for educational purposes. The authors may have disguised names; financial and other recognisable information to protect confidentiality. Figure 1: Comparison of the India and Nigeria on Hofstede cultural dimensions Power distance Individualism Masculinity Uncertainty Avoidance Long-term orientation Apart from many other factors, Hofstede’s cultural dimensions explain the key differences across Indian and other African cultures such as Kenya. Figure 1 provides the scores for India and Nigeria on cultural dimensions. Source: Gupta, N., 2022. Bajaj Auto (a) –catering to the African market. Emerald Emerging Markets Case Studies, 12(1), pp.1–29. Read through the case study below entitled “Bajaj Auto (a) – catering to the African market” and answer the questions that follow. Bajaj Auto – catering to the African market “The World’s Favourite Indian” – tagline for Bajaj Auto (BA), India’s largest two-wheeler exporter. With ongoing exports to around 75 countries, BA’s position looked quite promising, despite the adverse effects of COVID-19 worldwide. In December 2020, the firm had sold 348,173 units of two-wheelers and three-wheelers, of which 221,603 units (around 63%) were exported. Besides being present in other regions of the world, BA’s foray into the African market, with its entry-level Boxer motorcycle, has been very successful. The firm was growing from strength to strength in this market. Known for their lightweight design, ruggedness, good build quality, versatility, and durability, BA motorcycles have been successfully plying the roads of many countries in Africa, such as Kenya, Namibia, and Nigeria. Besides motorcycles, BA also sold three-wheeler rickshaws and small commercial vehicles in African countries. It had also unveiled a compact quadricycle aimed at intra-city transportation in South Africa. The African market was one of the fastest-growing consumer markets globally. Many African countries presented lucrative opportunities for BA. While being confident of the continued success of BA’s brand positioning and value proposition in the African market, Rakesh Sharma, the Executive Director of BA, was also aware of the multiple challenges that the firm faced in these markets. From the onslaught of competition from fellow Indian manufacturers, such as TVS and Hero MotoCorp, to a continuous threat from Chinese and Japanese firms. International supply chain and logistical issues, and economic and legal challenges were a reality in various African countries. These were a few of the obstacles that Sharma faced in the African market. In addition to these critical dimensions, Sharma had to keep a constant eye on the pulse of African consumers. Any misreading of their preferences could lead to detrimental effects. Would Sharma be able to rightly assess the multitude of challenges that BA was facing in the African Market to continue its successful journey? In what follows, the company background, the African automobile market, the African consumer, the company’s challenges and successes are explained to answer this question. Company background BA was a part of the Bajaj group of companies, which was among the top 10 business houses in India. This family-owned group was founded in the year 1926 by Jamnalal Bajaj. It comprised 34 companies covering various industries, spanning automobiles, home appliances, lighting, iron and steel, insurance, travel and finance. Instituted in 1945 by financial year (FY) 2021, BA had an annual turnover of US$3.5bn. With three state-of-the-art manufacturing plants across India, boasting an annual manufacturing capacity of 5 million units, BA was ranked as the world’s fourth-largest manufacturer of three-wheeler and two-wheeler vehicles. Rahul Bajaj, the Chairman of the group till May 2021, took charge of the 3 business in 1965. Under his leadership, the turnover of BA increased from INR 72 million to INR 120 billion as the firm expanded its product portfolio and initiated its export operations. In 2005, Rahul’s son Rajiv Bajaj became the Managing Director of BA. Rajiv had very ambitious strategic growth plans for BA. He had introduced a new range of bikes (e.g. Pulsar) and had enhanced BA’s foray into several countries in Latin America, Africa, the Middle East, South and Southeast Asia. BA operated on the pillars of innovation through robust research and development. Its research team was bigger than the industry average. Rahul had left BA’s chairpersonship to his cousin, Niraj Bajaj, in May 2021. BA’s operations worldwide were facilitated through 66 global distributors spread across more than 75 countries. Through its distribution network, the firm commanded a 26% market share of the global two-wheeler market and a 76% market share of the global three-wheeler market. In 2007, BA had acquired around a 14% stake in Austrian bike manufacturer KTM, which had increased to 48% over time. BA acquired Husqvarna, a Swedish motorcycle maker, to rapidly improve its product range and quality. British bike maker Triumph had partnered with BA to develop a new range of mid-capacity motorcycles. Sharma elaborated, “As far as Triumph is concerned, we are focusing mainly on product development. The two teams, Triumph Team and Bajaj Team, are in regular discussion with each other, and research work is on”. In FY2021, which had witnessed the adverse impact of COVID-19, BA shipped 1,796,518 two-wheeler units, down 3.9% from FY2020, when 1,869,220 two-wheeler units were shipped. BA still accounted for almost 60% of India’s annual motorcycle and three-wheeler exports. This percentage accounted for 52% of the total units manufactured in BA’s plants during FY2021, and it had earned the firm INR 126.87 billion from the overseas market. Over the past decade, BA has cumulatively exported 18 million vehicles and generated over US$14 billion. The company claimed that it was among the most visible Indian brands worldwide and that over 80% of its exports came from markets where it enjoyed the first or second-highest market share position. Highlighting the importance of exports, Sharma informed, “Export, which this month (May 2021) also crossed 200,000 units, is a substantive order book which we have to keep servicing. So, it is because of the export business that we keep moving, and overall, we don’t feel the need to close any of our three plants”. Furthermore, BA had announced a significant investment of INR 6.5bn to fulfil the rising demand for its products globally by constructing a fourth plant in India at Chakan, Maharashtra, for its premium motorcycle brand portfolio. Sharma explained, “For the premium segment, particularly from international markets, the demand for our collaborator KTM is huge, and to service them and the electric vehicles, we announced a new plant a few months back, and its work is on track.” Sharma had been with BA since October 2007. He was an alumnus of the prestigious Indian Institute of Management (IIM) – Ahmedabad. After spending more than two decades in the paint industry, he shifted to the automobile industry around fifteen years ago. With the mission of building a global business for BA, Sharma knew that he was working “in the face of intense competition during VUCA [volatility, uncertainty, complexity, and ambiguity] times, particularly in the automotive industry, which makes each day challenging and exhilarating.” He relished, ‘‘Working in India and across the world with different cultures as it continually provides inspirational moments and learning experiences”. The African automobile market Two-wheelers 4 Motorcycles were a prominent mode of commuting in Africa. People relied on motorcycles not only for commuting but also for hauling cargo. The African consumers wanted well-built, reliable two-wheeled machines. Due to the inadequate public transportation system and growing urbanisation, Africa witnessed an increasing import of two-wheelers across the region. The African two-wheeler market was forecasted to cross US$9bn by 2021 and was projected to grow further at a compound annual growth rate (CAGR) of 12% until 2025. This growth was fuelled by the increasing penetration of Chinese and Indian low-cost two-wheelers in this market. The two-wheeler market in Africa could be segmented into motorcycles, scooters and mopeds. Among these three, the motorcycle segment was the largest segment by volume in 2019. There were multiple reasons for the popularity of motorcycles in Africa – its larger fuel carrying capacity, better manoeuvrability on the rugged road conditions across the region, better off-roading performance, ability to avoid traffic congestion, low prices, quicker acceleration, better engine capacity, large fuel tank, vast wheelbase, easy maintenance and better fuel economy in the face of rising fuel prices. Moreover, the booming motorcycle taxi business in African countries further augmented demand for motorcycles in the continent. The two-wheeler market in Africa was also segmented on engine capacity into various segments – up to 125cc, 126 cc-250cc, 251 cc- 500cc, and above 500cc. The two-wheelers falling in the up-to-125cc segment accounted for the largest market share in 2019. The up-to-125cc segment was expected to maintain its dominant position in the coming years. Mainly in the markets of Egypt, Nigeria, Kenya, Morocco, Uganda, Ethiopia, Algeria, Tanzania, South Africa and Angola. Egypt accounted for the largest share in the African two-wheeler market, primarily due to the lack of a public transportation system, an increasing number of female riders, easy financing options and growth in the country’s per capita income. Egypt was followed by Nigeria, which accounted for the second-largest share in the African two-wheeler market in 2019. The popularity of the two-wheelers in Nigeria was due to an inadequate public intra-city transport system, increasing economic activity, and rising demand for last-mile delivery options. Due to the growing population in the African continent, which, according to the World Bank, would reach 2.8 billion by 2060, the inadequate and poorly developed public transport system in many African countries was under tremendous pressure. Consequently, two-wheelers were becoming an essential medium for transportation in urban and rural settlements in these countries. Besides BA, other major players operating in the African two-wheeler market were Hero MotoCorp Limited (Hero) and TVS Motor Company (TVS) from India. Honda Motor Co. Ltd. (Honda), Yamaha Motor Co. Ltd (Yamaha) and Suzuki from Japan, Italian company Piaggio & C. S.p.A. (Piaggio), Taiwan’s SYM and various Chinese manufacturers. In this highly competitive market, all the significant players invested in innovations to maximise the returns on their investments. The focus was also on mergers and collaborations to increase the customer base as well as expand the sales and distribution networks in the African two-wheeler market. Three-wheelers The size of the global market for three-wheelers, commonly known as auto-rickshaw/tuk-tuk, was more than US$21bn. It was projected to exhibit a CAGR of more than 12% by 2026. The growing demand for three-wheelers globally has been backed by their low price, easy manoeuvrability and efficient performance. Additionally, rapid population expansion, rising 5 demand for transportation, inadequate availability of public transportation, underdeveloped transport and logistics infrastructure, low per capita income, increasing unemployment, and growing requirement for last-mile delivery of products were a few of the factors that had made three-wheelers quite popular in the African market. Three-wheelers provided an efficient, quick and economical way of transportation in the areas where buses, trucks and taxis could not effectively penetrate. Nigeria, Tanzania, Mozambique and Egypt emerged as the favourite markets for the leading three-wheeler manufacturers in Africa. The three-wheeler market was divided into passenger and load carriers based on the vehicle type. The market was further bifurcated into electric, petrol, diesel, and compressed natural gas (CNG) run vehicles. Electric three-wheelers were expected to hold the largest market share by 2024, especially in developing countries, due to the rising adoption of clean energy sources in providing a pollution-free, affordable commute. In the three-wheeler market, besides BA, the other major players from India were Mahindra and Mahindra Limited, TVS, Scooters India Limited and Atul Auto Limited. The Indian firms had seen a rise in exports by 40% in FY19 and 49% during FY20. This was due to the economic recovery of important export markets in Africa. The Indian firms were facing tough competition from the Chinese firms – Chongqing Zongshen Tricycle Manufacturing Co. Ltd. (Zongshen) and Ningbo Dowedo International Trade Co. Ltd. Piaggio from Italy was also a significant competitor. The dominance of the three-wheeler market required the noteworthy players to form strategic alliances for technology partnerships for developing modern features and other technological advancements. A glimpse of African consumers A Boston Consulting Group study cautioned businesspeople not to consider the continent of Africa as a single market instinctively. They recommended that Africa be seen as an entity that comprises many markets that differ in their economic and retail development levels. Despite differences, there were also prominent commonalities among the consumers of this market. Studies have shown that consumers in Africa are optimistic about the future and have retained their appetite for buying new things, notwithstanding the economic uncertainty surrounding them. The consumer expenditure in the African countries was expected to reach US$2.1 by 2025 and US$2.5 by 2030. Though these findings provided evidence of Africa’s immense economic promise, many African countries were recovering from the economic downturn of 2016–2017 and were struggling with double-digit inflation. Certain larger economies, like Angola and Egypt, were also showing reduced optimism levels. African consumers equated happiness with their ability to buy new things. However, they did not accept just anything; they were focused on the’ quality aspects of products. The idea that quality mattered more than quantity resonated with many African consumers. Quality for these consumers meant how long an item would last. With an average per capita income lower by a factor of 3.5 from consumers in Asia, lower by a factor of 15 from consumers in Europe, and lower by a factor of 25 from consumers in North America, African consumers could not afford to buy things that are damaged quickly. The perceived link between quality and durability substantially impacted African consumers’ brand preferences. Studies showed that African consumers were more brand conscious than people in other regions. These consumers believed that the brands they used said something about who they were and where they fit in. They gave credence to those brands that had endured for generations. However, the brand loyalties of these consumers were not inflexible and could 6 change over a while. This meant that newer brands could make inroads in Africa if they were seen as superior and were marketed effectively. Experts opined that a good channel strategy in African markets should consider the specifics of the category and the country where the product is being sold. Internet accessibility varied from country to country in Africa. While only 40 to 49% of Angolans, Egyptians and South Africans had internet access, 60 to 70% of the consumers in Ethiopia and Nigeria had net connectivity. Kenya was one of Africa’s most technologically advanced countries, with more than 80% of its urban population having internet access. In most countries, the total share of internet-connected consumers dropped considerably when people in rural areas were factored in. Many African consumers, who had net connectivity, connected to the internet with a smartphone. Connections were typically over a 3 G network, which provided less than one-tenth the speed of 4 G connections. This would impact the companies while designing their websites and e-commerce services for consumers in Africa. Despite the slow internet speed, about one in four African consumers searched online for price information before going to a retail store. One in five consumers used the internet to search for product specifications and product information. In certain African countries, like Kenya and Ethiopia, social media sites became important sources of influence in offline shopping. The internet accessibility information was crucial for BA, as it had planned to strengthen its bond with youth through experiential online initiatives. BA’s massive international export operations had made it necessary to have an online presence accessible across the globe. It enabled them to know what was said about their brand and products and spread relevant product and brand awareness. Bajaj Auto’s success in the African markets BA’s foray into the African market was a reaction to the invasion of Chinese motorcycles in India in 2005. Though Chinese motorcycles were 30% cheaper, they could not significantly dent the Indian market because of their quality issues. This encouraged BA to attack the Chinese motorcycles in the African market. African consumers at that time had two choices – either to buy expensive Japanese motorcycles or purchase more economical Chinese offerings. Chinese motorcycles came as completely knocked down (CKD) units that had to be taken to a mechanic for assembly. BA launched its fully assembled motorcycle priced more than the Chinese models but less than the Japanese ones. By creating a system of dealerships, service centres and trained mechanics, besides developing a relationship with its consumers, BA established a strong brand presence and became the market leader in many African markets. Sharma elucidated, “Our international business is not a B2B business. It is not that we sell to some distributors and forget about it. It is a B2B2C business”. Sturdy built quality and competitive pricing due to frugal engineering made BA’s offerings the most popular in the less-than-150cc category of motorcycles. BA’s entry-level brand of motorcycle – Boxer, though 25% more expensive than available Chinese offerings, became a runaway success in many African countries such as Kenya, Namibia and Nigeria. The reason for Boxer’s success was the buyers’ perception of it offering a better value proposition, though at a higher price, as Sharma asserted, “Sure, we took time to prove our proposition, but the message was loud and clear: if you buy a Bajaj Boxer, you will get value over a period of time.” The Boxer was considered a rugged, minimalist motorcycle, characterised by its lightweight design and good build quality, as well as 7 unmatched versatility and durability. Many markets across Africa used it as a motorcycle taxi, locally known as a boda-boda. Over time, BA had installed over ten assembly facilities in Africa, wherein CKD units imported from India were assembled before being sold. It captured the two-wheeler market share in more than a dozen African markets, becoming either market leader or market challenger in these markets. It covered a cumulative market share of 40% of nearly 2.7 million two-wheeler units sold in these markets. By selling more than a million vehicles in these markets in the FY20, BA recorded a CAGR of 30% in the past three years. As Sharma ascertained, “Bajaj has been able to compete and win in Africa based on its product strengths, local assembly operations, quality assurance, a network of distribution partners, dealers and service centres”. He added, “With a long-term focus, a huge effort has been put in training tens of thousands of mechanics and establishing customer engagement programmes, which is yielding results”. This had resulted in the Boxer bike becoming a ubiquitous brand in these markets. The brand’s nearest competitor sold less than half of Boxer’s volume. Buoyant by its success in the African market, BA had introduced Qute. It was a quadricycle that met the European quadricycle norms and had received the European Whole Vehicle Type Approval certification. It was powered by a four-stroke, single-cylinder engine of 217 cc that produced power equivalent to a sub-250cc motorcycle. It had a top speed of 70 km per hour, suitable for an intra-city drive. Qute claimed a fuel economy of 35 km per litre of fuel. It was available in South Africa for 75,000 Rand (equivalent to US$5,300) and had seen wide popularity in the South African market due to this highly affordable price tag. BA hoped that its success in South African markets would also be emulated in other African markets. Challenges for Bajaj Auto in the African market Competitor challenges Despite having been successful in the African market, BA was well aware of the constant competitive threat from other players. Besides BA, other Indian manufacturers like TVS and Hero had also found success in the African market over the past decade. These companies were also among the leading players in many markets in Africa. TVS and Hero had seen steady growth in their two-wheeler exports over the past few years, and, like BA, these firms’ offerings were also known for good quality and competitive pricing. To further improve its competitive position in foreign markets, TVS had allied with German auto giant BMW’s motorcycle division, BMW Motorrad (BMW), to produce new products for both companies. As a part of this alliance, TVS would make and distribute BMW bikes in India, and BMW would help TVS build bikes with international standards. TVS was also one of the significant manufacturers of three-wheelers. Besides other global markets, TVS three-wheelers had also witnessed market share expansion and growth in the African markets, where customers had started to like its products. Not wanting to be left behind, in 2014, Hero appointed Markus Braunsperger as its Chief Technology Officer, whose responsibility included research and development. Braunsperger had 25 years of experience with BMW in various roles before joining Hero, which wanted to capitalise on his expertise to become the world’s largest manufacturer of motorcycles. BA was not only facing competition from fellow Indian firms; manufacturers from other countries were posing challenges too. Zongshen, a Chinese manufacturer, had made an extensive range of its products available across the African market. This range included 8 utilitarian mopeds, commuter motorcycles, retro-classic bikes, minibikes, etc. These offerings were widely popular among African consumers, enabling Zongshen to build a formidable reputation in the African market. Piaggio, the Italian conglomerate, also had a strong presence in Africa. Its offerings included models across multiple price brackets, ranging from economically priced town scooters to more expansive Moto Guzzi and Aprilia motorcycles. Piaggio’s three-wheeler was also very popular in the African market for its workhorse-like capabilities in ferrying agricultural products and household goods. These three-wheelers for the African market were manufactured in Piaggio’s Indian plant due to its price competitiveness and exported to the African markets. Japanese brands such as Yamaha and Honda also used India as an export hub for their African market. To cut down on carbon emissions, many governments in Africa were offering incentives to the buyers of electric three-wheelers. These electric three-wheelers were also exempted from various taxes to encourage their purchase. This brought competition for conventional vehicles from electric vehicle (EV) manufacturers. EkoRent from Finland had launched Nopia Ride, which was a full e-mobility service. The firm had planned to expand this service to many East African nations. Kenya Knights, a start-up, planned to import used EV -Nissan Leaf and test them for Kenyan roads. Various Chinese players dominated the African electric two-wheeler market. This was an issue for the Indian EV makers in the two-wheeler and three-wheeler space. Indian EV makers relied extensively on Chinese technical support, and even EV components were sourced from China. This made Indian EV firms less competitive; however, an Indian EV maker – One Electric Motorcycles – started exporting its electric motorcycles to Kenya despite this constraint. It also wanted to expand to other African countries in the future. The firm’s products were designed for harsh road conditions, heavy loading and high temperatures, making them popular in the African markets. Due to the highly competitive African market, BA is planning on investing in innovations to maximise returns and increase the customer base, as well as mergers or collaborations that will expand the sales and distribution networks. Market-related challenges The concerns for BA were not only due to various competitors but also because of many other factors that it encountered in the markets across Africa. An adverse currency exchange rate had hurt BA’s revenues and margins in Nigeria, which was its largest export market and accounted for two-thirds of its African exports. Added to this, there were some arbitrary rules whose implementation was bothersome for BA. In Lagos, the commercial hub of Nigeria, commercial motorcycles helped the commuters beat the traffic and have become popular. However, their excessive speeding had led to fatal road accidents, forcing the city authorities to impose a ban on commercial motorcycles and three-wheelers there. BA had exported about 40,000 to 45,000 motorcycles to Nigeria every month, and Lagos absorbed about 6% of this volume. Strict implementation of such bans would adversely affect BA. The Egyptian Government contemplated licensing three-wheelers and banning their free import because of safety concerns and their usage in various crimes. This would also adversely impact BA’s three-wheeler exports to Egypt, its second-largest market for three-wheeler exports. Nigeria and Egypt were essential markets for BA and constituted around 45% of its revenues and an even higher portion of operating profit, as these markets fetched better margins. 9 The African market was the largest export market for Indian three-wheelers, with around 0.3 million annual sales. Like other international corporations, BA would also prefer countries in Africa with a favourable tax and regulatory environment, political system stability, ample access to human and financial capital and proximity to key markets. However, the demand in many African markets was prone to continuous fluctuations because of volatility in forex rates, low dollar availability, political uncertainties, economic downturns, arbitrary legislation, etc. The depreciating value of local currency vis-à-vis the US$ in a few of BA’s export markets made India’s import costlier. In addition, a weakening Chinese Yuan was making Chinese products more competitively priced. These factors had forced BA to cut the prices of its products in various export markets. BA was also concerned about the falling share of its three-wheelers in the product mix being sold in these markets. Covid-19 challenges The unprecedented impact of COVID-19 on the world economy had created problems for BA. It was facing a shortage of shipping containers required to ship its products to various parts of the world. This problem arose due to the disruption of the fleet of ships around the globe caused by COVID-19-induced lockdowns. The bulk of container traffic was getting stuck in the Europe–China–US routes. “The fundamental issue is that the trade between China and the US and the trade between China and Europe has become very lucrative for the shippers; the shipping capacities have not increased, but the demand for containers has increased on that route, and the rates have gone up. So, everything has got sucked in by that sector”, clarified Sharma. This disruption had also caused a rise in freight costs and increased commodity prices, which had started to impact BA’s margin and forced it to raise prices across its motorcycle range by 1–3% in several markets. The international production and supply disruption due to COVID-19 caused another casualty in terms of the semiconductor shortage. As the automotive industry continued to grapple with the severe crunch in semiconductor chip availability, BA also lost half of its planned production during the July to September 2021 quarter due to the semiconductor shortage. Regarding the chip availability issue, Sharma observed, “The situation is dynamic. It might appear that supplies are improving, and then suddenly, the problem reappears. That is why we feel it is uncertain. There are other companies like Tesla that are setting up huge capacities and soaking up semiconductor supplies. This has had a ripple effect on us. So, this up and down in supplies will continue for some time”. COVID-19 had also created inventory management issues for BA. Sharma explained the complex scenario, “Due to poor offtake in April and May [2021], the industry and we are sitting on large inventory, but that is when compared to the current retail, which is low. the types of formal and informal institutions in African markets that affect Bajaj Auto’s operations. Provide ONE example for each type of institution from the case study. The experience of last year has been that as soon as the Covid situation recedes, and this time, depending on how aggressively the vaccination programme advances, there is an anticipation of a quick bounce back. the national competitive advantage theory to assess Bajaj Auto’s competitive advantage in the African market. Provide one example from the case for each aspect of the theory. That’s the reason we have not looked at aggressively reducing inventory”. Domestically, economic risk challenge Bajaj Auto faces in Nigeria and other African markets. Provide three examples of this challenge from the case. Conclude your answer by recommending strategies to manage these risks effectively. BA was facing supply chain issues at its plants in India due to Covid-19-related lockdowns imposed by state governments. It witnessed a 10–15% shortage in its workforce as many staff were either worried about coming to work due to the prevalence of Covid-19 or had returned to their villages due to lockdowns. cultural dimensions outlined by Hofstede’s framework. Then, explain how the dimensions might affect Bajaj Auto’s operations in African countries by comparing the scores for India and Nigeria. These factors adversely impacted production and shipments dedicated to the African continent. Despite these challenges, Sharma believed in the strength of the BA brand in Africa during a difficult period like Covid-19, when pay cuts had become the norm. He stated, “I would say 10 that in times like this, people like to go for real value and brands which they can trust. explicit corporate social and environmental responsibility (CSER) initiatives that Bajaj Auto can integrate into its African market operations to enhance stakeholder relations. In addition, indicate how each initiative can benefit Bajaj Auto. They do not rush to buy cheaper bikes,” he said. “The segment will be intact, but, within the segment, people will go more towards value and less towards fancy parts of the proposition,” reasoned Sharma. VRIO framework, identify and evaluate Bajaj Auto’s key resources and capabilities that provide it with a competitive advantage in the African market. Then briefly indicate the competitive implication. Regarding BA’s strategic path during such circumstances, Sharma asserted, OLI Paradigm and explain the advantages thereof. Then, apply it to Bajaj Auto’s investment strategy in Africa. Provide two examples from the case for each advantage to support your answer. “whatever we sell should make better money. We are clear this will only come if we offer something substantive to the buyer, more so during this time when people will tend to be conservative”. Notes 1. INR = Indian rupee; US$1 = INR 74.21 on June 24, 2021 2. This case is written solely for educational purposes. The authors may have disguised names; financial and other recognisable information to protect confidentiality. Figure 1: Comparison of the India and Nigeria on Hofstede cultural dimensions Power distance Individualism Masculinity Uncertainty Avoidance Long-