HERO MOTOCORP LIMITED
| PG NO.
| THE COMPANY PROFILE
| FINANCIAL PERFORMANCE ANALYSIS
| INDUSTRY AND COMPETITIVE ANALYSIS
| ANALYSING RESOURCES AND CAPABILITIES FOR COMPETITIVE ADVANTAGE – VRIN FRAMEWORK
| SWOT ANALYSIS
| STRATEGIES - CURRENT AND SUGGESTED
We express our sincere thanks and gratitude to our project guide Dr. Raj K. Kovid, who has been of immense support and guidance in enabling us to do this project. His deep understanding and valuable insights have been of great help in the successful completion of our project. We would also like to thank all those people, for whose support and help we are successful in completing the project.
I. THE COMPANY PROFILE
About the Company:
Hero MotoCorp Ltd. (HMCL) formerly Hero Honda Motors Ltd. is the world’s largest two wheeler company in volume terms. HMCL manufactures and sells fuel-efficient scooters and powerful motorcycles. It has a production capacity of 6.5 million two wheelers at its manufacturing facilities at Gurgaon and Dharuhera in Haryana and one at Uttaranchal. Hero MotoCorp accounts for 46% of all bikes sold in India. The company exports to Africa, Asia, Eastern Europe and Latin America. In the calendar year 2011, HMCL sold over six million units of two wheelers.
The company offers motorcycles in all the three major segments - CD Dawn and CD Deluxe in entry; Splendor, Passion, and Glamour in executive; and Hunk, Achiever, CBZ and Karizma in premium. It also sells Pleasure in the ungeared scooter segment. Hero MotoCorp started as a joint venture between Hero Group and Honda motors. In mid-2011 Honda sold its 26% stake in Hero MotoCorp to Hero Group. Pawan Munjal and the Munjal family own about 52% of Hero MotoCorp. Pawan munjal is currently the MD &CEO of HMCL.
Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.
* 1956 - Formation of Hero Cycles in Ludhiana (majestic auto limited). * 1975 - Hero Cycles becomes largest bicycle manufacturer in India. * 1983 - Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed and Shareholders Agreement signed. * 1984 - Hero Honda Motors Ltd. Incorporated
* 1984 to 2011 - Produced a number of successful products. All products were able to create a difference and made the company to be market leaders. * 2011(Aug) – Joint venture between Hero and Honda fell through. * 2012 – Hero Motocorp launched new models for younger generation. Mission:
HMCL’s mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.
The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.
The product line, segments and brands of HMCL are as shown below:
Key Strategic Decisions:
2011 - HeroHonda ends joint venture.
| Hero & Honda started seeing each other as competitors.
| New brand identity & logo.
| Honda no more technological partner after 2014.
| Because technology agreement ends on 2014.
| Hero partnered with EBR & other firms as technological partners and has also taken R&D initiatives.
| Can enter export market.
| Termination of agreement with Honda.
References: 1. http://www.moneycontrol.com/news/business/hero-motocorp-to-raise-output-to-7m-units-per-year_654760.html
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