Bajaj Auto Managing Director Highlights Fundamental Difference Between Established Brands and Startups

Mumbai, India - In a recent speech at the CNBCTV18 Global Leadership Summit, Bajaj Auto's Managing Director Rajiv Bajaj emphasized the stark contrast between established brands and many startups. While established players spend decades building strategy, brand, and technology, many startups resort to 'burn' strategies that end up depleting these resources.

According to Dr. Bajaj, 'upstarts' are companies that fail to develop a build-strategy, instead relying on a 'burn strategy'. This approach involves eroding one's brand value through aggressive pricing reductions, burning out inventory and equipment in factories and distribution channels, and sacrificing customer satisfaction to increase short-term profits.

In contrast, 'startups' have built a strategy and focus on developing technology, branding, product development, and consumer experiences. These companies prioritize building strong relationships with employees, consumers, and partners while driving both the top and bottom lines.

Dr. Bajaj notes that many startups fail because they primarily aim to serve existing markets rather than creating new ones. This approach leads to a high degree of similarity between new businesses and established players, ultimately resulting in failure.

"It's not about winning or losing; it's about being a champion," Dr. Bajaj said. "Whether we're in the motorcycle industry or any other business, 90-95 per cent of all new businesses fail due to this strategy of serving an existing market rather than creating one."

He further emphasized that the key difference between established companies like Wipro and traditional startups lies not in their size but in their approach and mindset. "We are more like so-called startups because we've built a compelling story over time, while others may be big but lack such story," he said.

As the technology landscape continues to evolve at an unprecedented pace, Dr. Bajaj's comments serve as a timely reminder for startups and established players alike: to invest in building strategy, brand, and technology is essential for long-term success.