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  • Group 8 - Sec E - Hero Honda Motors

    Transféré par

    Ravi Rakesh
    56 vues10 pages
    Hero Group came into existence in the early 40 s with bicycles. Entry of foreign players in the mid-80 s through joint ventures. Demand drivers: urbanization, saturation of cities, inadequate roads, expensive four wheelers Motorcycle was the fastest growing segment in two-wheelers in India (22% CAGR, 1996-2001)

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    Group 8_Sec E_Hero Honda Motors

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    Hero Group came into existence in the early 40 s with bicycles. Entry of foreign players in the mid-80 s through joint ventures. Demand drivers: urbanization, saturation of cities, inadequate roads, expensive four wheelers Motorcycle was the fastest growing segment in two-wheelers in India (22% CAGR, 1996-2001)

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    56 vues10 pages

    Group 8 - Sec E - Hero Honda Motors

    Transféré par

    Ravi Rakesh
    Hero Group came into existence in the early 40 s with bicycles. Entry of foreign players in the mid-80 s through joint ventures. Demand drivers: urbanization, saturation of cities, inadequate roads, expensive four wheelers Motorcycle was the fastest growing segment in two-wheelers in India (22% CAGR, 1996-2001)

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme PPTX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 10

    Group 08 Roll No.

    PGP/015/296 PGP/015/304 PGP/015/311 PGP/015/319 PGP/015/321 PGP/015/324

    Section E Name Nibedita Chakma Prem Sarath Ravi Rakesh Saurav Agarwal Siddhartha Roy Swati Gupta

    Email-ID nibeditac15@iimk.ac.in prems15@iimk.ac.in ravir15@iimk.ac.in saurava15@iimk.ac.in siddharthar15@iimk.ac.in swatigupta15@iimk.ac.in

    Contact no. 8943126933 9946747622 9645002546 8943986863 8086019147 9539553361

    Hero Group came into existence in the early 40 s with bicycles Achieved highest level of employee productivity and efficiency on a global basis

    Provided superior products at reasonable prices Approach towards product innovation, quality and reliability Excellent network of dealers with rural and urban reach Mission: Bringing transportation to the masses

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    Entry of foreign players in the mid-80 s through joint ventures Cut throat competition: styling, price and fuel efficiency Increase in significance of technological expertise Huge opportunity due to low penetration for the two wheelers in India (10%, late 90 s) Demand drivers: Urbanization, saturation of cities, inadequate roads, expensive four wheelers Motorcycle was the fastest growing segment in two-wheelers (22% CAGR, 1996-2001)

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    1984: Hero Honda Motors (HMM) was born as a result of Joint Venture (JV) between Hero Group and Honda Motor Company Honda Motor Company
    

    Hero Group
    

    Honda needed an Indian partner A compromised relationship: Hero was the last choice Contribution: Technical know-how

    Hero wanted to graduate from bicycles to motorcycles Desire of beating Bajaj and leveraging the Honda brand Contribution: Great customer understanding and reach
    4

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    1995: Significant renegotiations in terms and conditions; in favor of Hero Significant slash in royalty from 4% to 0.5% Honda agreed for greater sharing of its R&D and product suites HMC agreed to increase extent of components and subassemblies purchased from Hero s suppliers Honda lacked an understanding of the Indian consumers and also lacked a proper supply chain Regulatory restrictions made it mandatory for foreign players to enter through a JV with local player
    Strategic Management, IIMK 5

    Tuesday, February 21, 2012

    No indigenous R&D expertise at present Competitors will take advantage of their international associations  Bajaj spends 12 times more on R&D  Others will market their international brand associations Quality support functions can take a setback as Honda always provided it Honda will become the new Hero
    Hero needs to defer the break-up till it develops independent R&D and quality support
    6

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    Carrot

    Stick

    Upward revision of royalties Allow Honda to leverage Hero s distribution network and unique supply chain for its scooter business

    Enter into strategic alliances with players in the scooter segment like Piaggio  Honda will be pressurized in its own prized segment in India  Build long term independent capabilities (CAGR scooter: ~23%, 2004-2010)
    7

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    Start building R&D capability  Four stroke technologies  Fuel efficient vehicles  Start developing technologies to deal with Euro 4 standards (long term) Invest heavily in the green technologies such as e-scooters and motorbikes Introduce product variants such as gearless bikes for women

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    Enter the African market starting with Nigeria (the largest twowheeler market in Africa, at around 1.5 million units a year)

    Get into countries which lacks a public transport system like Russia, Pakistan, Mexico

    Enter the small car market with an offering at around 2500 USD by 2009 Start two wheelers after-market business

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    THANKYOU

    Tuesday, February 21, 2012

    Strategic Management, IIMK

    10

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