Strategic Management

Presented By Roll No.

Anant Chavan 11

Mihir Panchal 481

Introduction

Hero Honda Motors Ltd; based in Delhi, India is a joint venture between Hero Group of India & Honda of Japan.It is been referred as world’s biggest manufacturer of 2 wheeler motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year.During Fiscal year 2008-09, the company had sold 3.28 million bikes and the net-profit stood up at `1281.7 crore.

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Introduction

The Company has its most popular model Hero Honda Splendor, which is the world’s largest-selling motorcycle (sold more than 1 million units per year).

Other than splendor, the company has launched its bikes in different models & looks with new innovation & technology.

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Diversification

The Group Chairman, Mr.Brijmohanlal Munjal has actively looked at diversification.

A considerable level of vertical integration in its manufacturing activities has been present in the Group’s growth & led into establishment of the Hero Cycles Cold Rolling Division, Munjal & Sunbeam Castings, Munjal Auto Components.

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Models of Hero Honda

• Achiever• Ambition 135• CBZ, CBZ Xtreme• CD 100, CD deluxe, CD dawn• Glamour• Hunk• Karizma, Karizma R, Karizma ZMR F1• Passion, Passion+, Passion Pro• Pleasure• Splendor

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Company Profile

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company, India.

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Company Profile

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception.

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Mission

Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers.

At the same time maintain the highest

standards of ethics and social responsibilities.

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Mission

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

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Problems & Issues

Joint Venture Problems:- Honda Motor Company Ltd. announced it

was setting up a subsidiary.The development of the CD-100 motorcycle

was only successful for a very short period of time .

Honda held complete responsibility for the Research & Development department for Hero Honda.

Honda negotiated new ventures and partnerships with other Indian manufacturers in the automobile and power equipment industry, leaving Hero completely out.

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SWOT Analysis

Strengths Ability to understand customer’s

needs and wants. Recognized and established brand

name. Effective advertising capability.

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Weaknesses Weaknesses

R&D is not close to the Hero manufacturing plant

Hero is vulnerable in the joint

venture because Honda Motor Company has so much power.

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OpportunitiesOpportunities

1.Global expansion into the Caribbean and Central America.

2.Expansion of target market (include women).

3.Become India’s leader in the scooter market.

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Threats

Bajaj Motors is a strong competitor.

Honda Motorcycles and Scooters India can take away market share and cause joint venture to go sour.

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Hero Honda to Split

• Hero Honda is a joint venture motorcycle company in India since 25 years.

• This venture has been extremely successful in the production of 2 wheelers in India.

• But, Honda also established its independent Motorcycle & Scooter company.

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Hero Honda to Split

• As this has been a shadow to the joint venture of Hero Honda.

• Honda is now a leading seller of scooters in India, with its attractive offerings such as Honda Activa, Honda Aviator & Honda Eterno.

• It also offers bikes such as Honda Unicorn, Honda CB Twister etc.

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Major Competitors

•Bajaj Auto•TVS Motors•Mahindra scooters•LML •Kinetic Motors•Honda

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Thank you!Thank you!Any Questions?Any Questions?

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