Bajaj Finserv's – Quest to Stand Apart

Bajaj Finserv's – Quest to Stand Apart

Expected Learning Outcomes

• Familiarize the concepts of Indian Financial system and understand the critical success factors for a financial services/NBFC firm like Bajaj Finserv
• Examine Bajaj Finserv’s differentiation strategy with a few defining contrarian decisions
• Understand the role of leadership in formulating a well-defined strategy with precision-like execution

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I. Indian Financial Services Industry: Commoditized and The Need for Differentiation

1. What do you mean by financial services? What are the characteristics of financial services?
2. What is the importance of financial services for an economy’s economic growth and development?
3. What are the different types of financial services that are available in India?
4. What do you understand by the difference between ‘Fund-based Services’ and ‘Non-Fund-based Services’?
5. .................

II. Bajaj Finserv’s Differentiation: DNA

1. What do you think can be the possible platforms for a Financial Service company to distinguish and differentiate itself? How do you connect these platforms to Bajaj Finserv?
2. What is Bajaj Finserv and what are its constituent companies which are involved in offering financial services in India?
3. Sanjiv Bajaj states in the base article that, “When you enter a new space, the initial impression you create is very important; we don’t want to launch something ordinary and then improve on it later on”. How do you think a financial service company can create an initial impression? Do you think the value proposition can be precisely planned and delivered or do you think it should and can evolve?
4. ...............

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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)