Stepping Back to Win ; Tvs Motor Launches New Products That May Revive Its Fortune.
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Summary
Towards end-February, Venu Srinivasan was in a real dilemma. As Chairman and Managing Director of TVS Motor Company, India's third- largest twowheeler manufacturer, he was caught between his stakeholders' interest on the one hand and his strong conviction on the other. The company's original 125cc motorcycle 'Flame' ended up in the courts after Bajaj Auto accused it of violating its patent over the use of twin spark plug technology and obtained an injunction restraining TVS Motor from selling the product. He was convinced that his company had not breached any law and will eventually win the case. In fact, TVS Motor has filed a suit questioning the very grant of patent over the use of twin spark plug to Bajaj Auto in the first place on the grounds that the technology was a 'known art' and has been in use since 1987.
But the Chennai-based company was losing about Rs 40 crore a month by not selling 'Flame'. Suppliers and dealers were getting jittery. The top management was frustrated as they were sure that with 'Flame' the company has finally got the product right to fix the gaping hole in the fast moving 'executive segment' the cause for its poor showing in the last couple of years. Waiting for the law to take its course would naturally take time.See the full content of this document
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Stepping Back to Win ; Tvs Motor Launches New Products That May Revive Its Fortune.
The company had already lost over two months. Should he tweak the product by dropping the contentious twin spark plug ...
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