A term paper on Hero MotoCorp

Topics: Honda, Brand, Motorcycle Pages: 43 (3223 words) Published: March 18, 2014
Strategic Management

A term paper on
Hero MotoCorp
There is a Hero in each one of us………….

11/11/2013
Strategic Management

Submitted by

Submitted to

Sachin M

Prof. Vedavyas MG

USN :1PT12MBA79

Associate Professor

3rd sem MBA-“C”

Department of MBA

Stream: Finance-“F2”

PESIT

Table of contents
Contents

Page number

ABSTRACT

02

OVERVIEW OF THE INDUSTRY

03

Industry Analysis- using Porter’s Five Forces

04

Model
HERO MOTOCORP LTD-Background

05-06

Vision, Mission And Objectives

07-08

Products of Hero Motocorp

08

PEST STUDY

09

Micro environmental study

09

SWOT Analysis

10-11

Strategic Analysis

12

BCG matrix

12

GE nine cell matrix

13-14

Financial analysis & ratios

14-16

Competitors analysis- BAJAJ AUTO

17

LIMITED analysis
SWOT analysis of BAJAJ AUTO LIMITED

17

capitals
Ratio analysis

18

Findings

19

Conclusions

19

References

20

1

ABSTRACT
An analysis of the two wheeler industry is done by identifying the position of our company, Hero MotoCorp. Having a fortified background, the company has shown tremendous results and opportunities for the growth and development in this industry. The company has also witnessed several strategic movements in terms of human resource, diversification of the product basket, technological advancements, and merger-demerger to name a few. Being the pioneer in selling two-wheelers in the country, this company has built strongly on its brand value and customer loyalty. To learn more about the functioning of Hero MotoCorp and to give a useful insight of it, the performance of the company is evaluated which avows its position as number one as compared to its competitor (Bajaj Auto Ltd). Various tools have been used to compare the company’s performance with the industry competitor. An in-depth analysis reflects the strong position that Hero MotoCorp is holding (market share of > 52%). Hero leads the category in brand stature, which is to be expected since the brand has enjoyed market leadership for several years and hence it should strengthen it in order to be invincible in this industry.

2

OVERVIEW OF THE INDUSTRY
The automobiles industry is divided into four segments
1. Two-wheelers (mopeds, scooters, motorcycles, electric two-wheelers) 2. Passenger vehicles (passenger cars, utility vehicles, multi-purpose vehicles) 3. Commercial vehicles (light and medium-heavy vehicles)

4. Three wheelers (passenger carriers and good carriers)

The industry is one of the key drivers of economic growth of the nation. Since the economic liberalization of policy of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come a long way. Today, almost every global auto major has set up facilities in the country.

The two wheeler industry in India is a flourishing industry with a recorded sales volume of 3.4 million units in Q3, 2011-12
The worlds standing for the Indian automobile sector, as per the Confederation of Indian industry, are as follows:
 Largest three wheeler market
 Second largest two-wheeler market
 Tenth largest passenger car making
 Fourth largest tractor manufacturing
 Fifth largest commercial vehicle market
 Fifth largest bus and truck segment

Motor Cycle
Motor cycle remains the most affordable transport preferred by the Indians and the key competitor for this industry is the emerging Tata Nano (Price range-Rs.150000-2, 50,000), designed by the TATA Motors which is keen on establishing itself as a safety alternative to motor cycles as the number of fatal accidents of motorcycle users is relatively high. However, a significant aspect of the market is that it continues to hold a dominant market share of 75% as compared to that of passenger cars (16%).

3

Industry Analysis- using Porter’s Five Forces Model
1) Entry Barriers:
Entry barriers are...
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