Exploring market potential for leasing and hire purchase in Baroda; Apple Industries Limited, Baroda

Abstract

This study has been carried out for M/s Apple Industries Limited, Financial Services Division, Baroda to explore the market potential for leasing and hire-purchase activities in Baroda. This is intended to help the company design an appropriate strategy to consolidate their market share in Baroda. Fifty companies which use/ are likely to use leasing and seven financing companies were interviewed to know their ideas about leasing and hire purchase. The study shows that leasing and hire purchase are a rapidly growing market in Baroda with the market for car-financing growing at the rate of 100%. However, at the same time, competition is getting tough day by day. Educating the customer has been found to be very important as most of the times, he is ignorant about the beneficiary aspects of leasing, as compared to bank financing. Also, the leasing companies will have to provide, cheaper finance in the days to come as banks are emerging as a potential competition to this business. The key phrase for the finance companies to survive in this market is going to be + ‘customer satisfaction! 7 if necessary, at the stake of reduced margins for Providing better service. It is going to be Survival of the Fittest.