Strategic Leadership Brijmohan Lal Munjal

Profile :
Founder Director and Chairman of the Company and the $3.2 billion Hero Group. Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India). In recognition of his contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government. Started his business career making bicycle parts. Today his $2 billion (sales) Hero Group is world's biggest bicycle and Motor cycle producer.

 Talking of their strategy in maintaining this position Munjal says that product innovation, new product development, distribution, and aftersale service coupled with excellent customer relationship management are some of the initiatives have helped them retain their World No 1 position for the over five years.

About Hero Motocorp

Started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan Honda brought in the technological know-how and Hero the India presence, and the local manufacturing ability. Established dealerships all over the country Three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Large sales and service network with over 3,000 dealerships and service points across India.

Suppliers
It is reported Hero Honda has five joint ventures or associate companies, Munjal Showa AG Industries Sunbeam Auto Rockman Industries Satyam Auto Components

That supply a majority of its components.

Strategies in three phases :

Phase I (1984-1994)
Competitiveness Operational Core competency Marketing With slogan Fill it, shut it , Forget it Close integration with suppliers Focusing on Distribution and After Sales Network Aim was to create synergy between technologies, systems and human resources, to produce the product and service that meet quality, performance and price aspirations of their customers.

Phase II
In 1992, updated contract with Honda for another 10 Years Planned more R&D support from Honda Splendor launched in 1994 for office going middleclass. Focused on market consolidation across country with punch line Desh ki Dhadkan

Phase III (1999-2011)

Strategic shift from earlier operational core competency to another added marketing competency Much more competitive Honda,Bajaj,TVS,Yamaha as competitors. Product Diversification Launched 5-7 new bikes every year Differentiation Launched girls scooter Pleasure Aggressive marketing Focused on marketing in addition to core competency (Like sponsoring Cricket Series,TV Shows etc.) R & D expenditure increased

Termination of Honda joint venture

In December 2010, the Board of Directors of the Hero Honda Group has decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. There were differences over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Heros uneasiness over high royalty payouts to the Japanese company.

 Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.

Thank You