Professional Documents
Culture Documents
CORPORATE STRATEGY OF
HERO MOTOCORP
By sumanjit mohanta
Issue
Cause
2010
Hero and
Hero - Honda
Honda
decides to
started
move out of seeing each
Joint Venture
other as
competitors
Effect
New brand
identity &
logo- Hero
Moto Corp
Theory
Solution
Competitio
n
Market
Hero Moto
Bajaj Auto,
Leader
Corp should Honda, TVS
defensive
spend on
Motors,
strategiesR&D for
Mahindra
innovation,
Scooters,
- Position
develop new LML, Kinetic
defence
technology
Motors,
- Counter
and
Suzuki, Royal
offensive
upgradation
Enfield,
defence
Yamaha
- Contraction
defence
Hero Moto
Corp buys
stake in
Honda
COMPETITORS
BAJAJ AUTO LIMITED
TVS
YAMAHA MOTOR CO., LTD
HONDA
CORPORATE STRATAGIES
Hero MotoCorp's key
strategies are to build a
robust product portfolio
across categories, explore
growth opportunities globally,
continuously improve its
operational efficiency,
aggressively expand its reach
to customers, continue to
invest in brand building
activities and ensure
customer and shareholder
delight.
JOINT
JOINT VENTURES
VENTURES
SWOT
PORTERS 5
FORCES
Intensity
Intensity of
of
Rivalries
Rivalries
JOINT VENTURES
Hero MotoCorp, on Tuesday,
STRENGTH
WEAKNESS
OPPURTUNITY
THREAT
Threat of Substitutes
of Substitutes
Threat
Unlimited
number of substitutes (HERO MOTO CORP)
Substitute product is inferior (HERO MOTO CORP
Threat
Threatof
ofNew
NewEntrants
Entrants
Low
Low
Bargaining
Bargaining
Power
Powerof
of
Suppliers
Suppliers
High
HighBargaining
Bargaining
Power
Powerof
of
customers
customers
Suzuki; 3% Others; 2%
Hero MotoCorp; 44%
Yamaha; 3%
Honda;
15%19%
Bajaj;
TVS; 14%
Munjal Showa
AG Industries
Satyam Auto components
Sunbeam Auto
Rockman Industries
Extensive
Extensivecompetition
competition
2012 Domestic Sales 15.4 Million
Threat
Threatof
ofsubstitutes
substitutes
Rs. 79
Rs. 45
Government
Policies
High import duty
on motorbikes
105%
76%
R & D facilities
in U.S. Erik
Buell Racing
$ 20 Millions
Core Competency
Exports
0.17 Mn two-wheelers
Share Price
10 % since 2011 Tie-up with AVL for
1713-1905
engine development
CC
M
H
ee HM
t
a
e
r
t
CCrea iencee
rrienc
e
p
x
EExpe
HMC Roadies
HMC Merchandise
Political
Land acquisition
Imposition of taxes
Technological
Economical
PEST
PEST
Thank You