Biting the bullet (case study)

Solution

1) What according to you is the main Problem in the case study mentioned?

The main problem in the case study is related to loss making royal Enfield motorcycle division.
The situation is so bad that they even had decided to shutdown or sell off the whole unit. No
doubt the sales figure has too supported the step as it was really a matter of concern. The sales
were down with 2000 units a month against the plants installed capacity 6000 units which have
been mounting for years.

Irrespective of the fact that the fan following of this motorcycle is huge yet it is not able to hit
the expected sales figure.

2) What was the Way Out to solve the problem as arised in the case study?

The following ways out is suggested:

 Bringing modification to the design of the vehicle but at the same time maintaining the
feel of the motorcycle, the rugged look and throbbing as for the examples.

 Addressing the mechanical problems of the motorcycle. For example: engine seizures,
oil leakages etc.

 The management team has to work hard for seeing to the customer expectations and
how close they can bring it to reality. The quality checks have to be and made sure
customer grievances are reduced as far as possible.

3) What were the Challenges faced by the company as per the case study?

They wanted to modernize the motorcycle and reach out to the wider customer base to
overcome this crisis they were facing but the problem was that the Royal Enfield fans wanted
the design as it was always and if they decide to change the design and features of the
motorcycle, there was always this risk of losing on to the old customers without even gaining
any new. So, the main challenge was to gain new customers without losing the old customers
when planning to make changes with the motorcycle.
Apart from this the technical challenge was to modify the engine for its oil leakage and meeting
the emission standards but changing it would change the sound and beat of the motorcycle
which if compromised could affect adversely. This challenge was met by taking help from
international experts and sound mapping was done to bring it as closer to the previous
throbbing of the motorcycle.

4) What do you make out on the Competition faced by Royal Enfield as mentioned in the
exhibit?

 American motorcycle maker, Harley-Davidson has an expansive plan to enter newer

segments, one of which will be the entry-level 250-500 cc space that will arrive as early
as next year which can give the royal Enfield bullet a run for the money. The main
reason being the competitive price the Harley-Davidson is planning to launch.

 The Benelli Imperiale 400 is a humble-looking motorcycle, which is squarely at the Royal
Enfield Classic range. The motorcycle gets a single round headlamp, a retro-styled
teardrop-shaped fuel tank, split seats, and a fine balance between chrome and black.
Relaxed ergonomics of the motorcycle allow the rider to travel comfortably for hours.
The Benelli Imperiale is priced at Rs 1.69 lakh (ex-showroom, Delhi).

 KTM-owned Husqvarna Motorcycles is all set to enter the Indian market early next
month with deliveries beginning in January or February 2020. The result is a progressive
looking machine, which brings together retro love with modern technology. Expect this
Royal Enfield competitor to carry a sticker price below Rs 3 lakhs.

5) What was the major Success factor that made Royal Enfield a great success?

The following are the major success factor:

 First and foremost the initiative taken by Mr. Siddhartha lal when the situation was the
worst to take up this challenge and the confidence shown by him standing up for his
believe on the unit against all odds was the for the biggest factor which was followed by

 The decision of bringing few technical modifications and addressing to the user
feedback for E.g.- engine modification , making gearing more convenient etc.

 And the improved management practices by regular quality checks and bringing
customer expectation to reality as closer as possible.
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