Bajaj Finserv's – Quest to Stand Apart
Synopsis
This case flyer offers an overview of the Indian Financial Services industry. It explains the differentiation strategies for a financial brand and further connects these concepts to Bajaj Finserv’s differentiation strategy in the light of Sanjiv Bajaj’s contrarian decisions.
Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion
The students should have a basic understanding of the Indian Financial System and Indian Financial Services Industry. Also, they must have familiarized themselves with an overview of Bajaj Finserv’s businesses and its business performance since 2007.
Case Positioning and Setting
This case flyer can be used for the following:
- • In MBA Program: This case flyer can be used either in Marketing or Brand Management courses to discuss how differentiation strategy can be conceived and executed especially in a highly commoditized industry like financial services
- • In MDPs/EDPs: This case flyer can also be used in strategy course to understand the importance of leadership in putting together a “differentiated” value proposition that can lead to a high performing business
Case Flyer Analysis and Classroom Discussion
Preamble to this Case flyer Analysis:
Indian Financial services industry is highly fragmented (and therefore commoditized) with a few notable national players with strong regional and local players. Bajaj Finserv, with a few contrarian decisions, has differentiated itself in a commoditized industry, thanks to Sanjiv Bajaj’s clear thinking and a well-crafted strategy. Accordingly, this case flyer enables a discussion on the factors that have helped Bajaj Finserv to differentiate itself in a crowded financial service industry. The classroom orchestration of this case flyer was carried out in the following (suggested) way [Exhibit (TN)-I]:.........................
I. Indian Financial Services Industry: Commoditized and The Need for Differentiation
The purpose of the first segment/section of this case flyer is to let the students/participants understand the Indian financial services industry structure and business dynamics of the same. Without a reasonable understanding of these it wouldn’t be prudent to connect the dots between how Bajaj Finserv positioned its brand vis-à-vis its differentiation strategy.
1. What do you mean by financial services? What are characteristics of financial services?
• Financial services –Financial services also known as financial intermediation, refer to the services provided by the finance industry, which deal with the management of money by banks, investment companies, leasing companies, venture capital companies, credit card companies, insurance companies, consumer finance companies, stock brokers, investment funds, accountancy companies and government sponsored enterprises
These institutions provide a variety of services to corporate and industrial enterprises for the facilitation of various financial transactions and other related activities.
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Exhibits
Exhibit (TN)-I: Classroom Discussion Dashboard
Exhibit (TN)-II: Types of Financial Services in India
Exhibit (TN)-III: Differences between Fund-based Services and Non-Fund-based Services
Exhibit (TN)-IV: The Structure of Indian Financial Industry
Exhibit (TN)-V: Relationship between Commoditization and Differentiation
Exhibit (TN)-VI :Top 10 Financial Services Players in India (2014-15)
Exhibit (TN)-VII: Differentiating Platforms of a Financial Service Company
Exhibit (TN)-VIII : Constituent Companies of Bajaj Finserv
Exhibit (TN)- IX: Bajaj Finserv Differentiation Proposition
Exhibit (TN)-X: Bajaj Finserv Financial Performance (Q2-2015)