Apple learnt from Samsung & LG that bigger screens on mobile handsets do sell & though Steve Jobs was against bigger screens, Apple has come out with a 5.5 inch screen in the Apple 6.

Rajiv Bajaj confesses to what he has learnt from his competitors but after providing the following data:

1. Bajaj is good at scooters but critics always said that Bajaj could not be good at motorcycles. The critics felt that the dealers were complacent; that Bajaj’s advertising was no good; that the others had superior product quality. Here, Bajaj observed that many products had quality issues but still did well in the market.

2. Maruti came 30 years after Ambassador but could beat it.

3. Today Bajaj is good in big motorcycles but has not done well in smaller bikes. Similarly, Suzuki is doing well in big bikes & not well in smaller bikes.In the case of Hero Motocorp, the reverse is true.

4. Hero lags in scooters; Honda is big in scooters but small in motorcycles.

5. TVS controls the moped market but not successful in scooters or motorcycles.

6. Bajaj has 90% share in 3 wheelers but in big 3 wheelers, Piaggio is the leader.

7. People buy Tata trucks but not its cars.

8. Mahindra is strong in SUV’s but is struggling to move into other segments.

9. Toyota & Honda are doing well in the mid-size cars segment but not well with Etios Liva & Brio.

What Bajaj concludes:

1. Logically you feel that a strength in one area should extend to another. But it does not happen that way.

2. As an engineer, he is tempted to feel that that if you make a better product, the customer will switch. But the customer switches not because it is better but because it is different.

3. Customer satisfaction & customer acquisition is not the same thing. Kaizen, quality improvement & the like, can help you get customer satisfaction but not customer acquisition. The latter is a very different game.

4. The leaders are not those who create products but those who create categories. It is not about selling products but selling perceptions.

5. Our scooter, the 3 wheeler, Maruti 800, our Pulsar are or were new categories.

6. Brand only means one thing: Did you create a new category? We have to create brands in the minds of people & not on the shop floor.