Project on Hero Moto Corp

download Project on Hero Moto Corp

of 9

Embed Size (px)

description

Hero

Transcript of Project on Hero Moto Corp

Slide 1

1Hero Moto Corp Ltd.IssueCauseEffectTheorySolutionCompetition2010Hero - Honda decides to move out of Joint VentureHero and Honda started seeing each other as competitorsNew brand identity & logo- Hero Moto CorpMarket Leader defensive strategies- Position defence Counter offensive defence- Contraction defence

Hero Moto Corp should spend on R&D for innovation, develop new technology and upgradationBajaj Auto, Honda, TVS Motors, Mahindra Scooters, LML, Kinetic Motors, Suzuki, Royal Enfield, YamahaHonda didn't have intention of sharing the upgraded technologyHero group might have to pay higher royalties for the upgraded technologyHero Moto Corp buys stake in HondaRefusal to merge the Spare Parts business2Hero Moto Corp Ltd.Market Size (Sales unit 2012)15.4 Million (Approx.)Motor cycles10 MillionScooters2.7 MillionSource: http://www.heromotocorp.com/hero_admin/data_content/pdf/annual_report/Annual_Report_2011_12.pdf

Hero MotoCorp6.23 MillionScooters15.2% market share0.41 Million

Moped0.78 MillionMotor cycles58% market share5.79 Million

3Hero Moto Corp Ltd.Revenue StreamYears2007-082008-092009-102010-112011-12Sales (units)33,37,14237,22,00046,00,13051,02,44462,35,2054Hero Moto Corp Ltd.

Low Bargaining Power of Suppliers

Extensive competitionHigh Bargaining Power of customers

Threat of substitutesThreat of New Entrants

Munjal ShowaAG IndustriesSatyam Auto componentsSunbeam AutoRockman Industries2012 Domestic Sales 15.4 Million5Hero Moto Corp Ltd.

76%

Government PoliciesHigh import duty on motorbikes 105%R & D facilities in U.S. Erik Buell Racing$ 20 MillionsShare Price10 % since 20111713-1905

Core CompetencyExports 0.17 Mn two-wheelers

Tie-up with AVL for engine developmentRs. 45Rs. 79

6Hero Moto Corp Ltd.

PoliticalEconomicalSocialTechnological- Green Technology- Safe Manufacturing- Rain Water Harvesting The Green Supply Chain Vocational Training Camp- Safe Rider Program Technical collaboration with Steyr Diamler Puch Largest investment of over Rs. 2500 Cr. to build an integrated R&D centre in Rajasthan Technical & Financial collaboration with Showa Corporation Japan Land acquisition Imposition of taxes

Changing lifestyles & high quality Deluxe segment (category) 100-125cc grew up by 15% 125-250cc category grew at 9% 4% excise cut & 1% reduction in CST Higher interest rate & fuel pricesPEST7Hero Moto Corp Ltd.Create HMC Experience

HMC Sports BikeHMC Roadies

HMC MerchandiseHMC Racing Events

8Hero Moto Corp Ltd.Thank You9Hero Moto Corp Ltd.