Description
PROJECT ON HERO MOTO CORP
Hero Moto Corp Ltd.
1
Issue
Cause
Effect
Theory
Solution
Competition
2010 Hero and Honda New brand Market Leader Hero Moto Corp Bajaj Auto, Hero - Honda started seeing identity & logodefensive should spend on Honda, TVS decides to move each other as Hero Moto Corp strategiesR&D for Motors, out of Joint competitors innovation, Mahindra - Position Venture develop new Scooters, LML, defence technology and Kinetic Motors, - Counter upgradation Suzuki, Royal offensive Enfield, Yamaha defence - Contraction defence
Honda didn't Hero group have intention might have to of sharing the pay higher upgraded royalties for the technology upgraded technology Refusal to merge the Spare Parts business
Hero Moto Corp buys stake in Honda
Hero Moto Corp Ltd.
2
Market Size
(Sales unit 2012)
15.4 Million (Approx.)
Motor cycles 10 Million
Scooters 2.7 Million
Moped 0.78 Million
Hero MotoCorp
6.23 Million
Motor cycles 58% market share 5.79 Million
Source:http://www.heromotocorp.com/hero_admin/data_content/pdf/annual_report/Annual_Report_2011_12.pdf
Hero Moto Corp Ltd.
Scooters 15.2% market share 0.41 Million
3
Revenue Stream
Years
Sales (units)
2007-08
33,37,142
2008-09
37,22,000
2009-10
46,00,130
2010-11
51,02,444
2011-12
62,35,205
25%
24%
20% 17% 16%
15%
15% 13% 12% 10% 10% 14%
Sales growth (nos.) %
11% 10%
11% 10%
OPM NPM
5%
0% 2008-09 2009-10 2010-11 2011-12
Hero Moto Corp Ltd.
4
Threat of New Entrants
Low Bargaining Power of Suppliers
Yamaha 4% Suzuki 4% Others 3%
High Bargaining Power of customers
Honda 16%
Hero MotoCorp 40%
TVS 14%
Munjal Showa AG Industries Satyam Auto components Sunbeam Auto Rockman Industries
Bajaj 19%
Extensive competition
2012 Domestic Sales – 15.4 Million Threat of substitutes
Hero Moto Corp Ltd.
5
Rs. 79
Rs. 45
Government Policies High import duty on motorbikes
76%
105%
R & D facilities in U.S. Erik Buell Racing $ 20 Millions
Core Competency
Exports 0.17 Mn two-wheelers
Share Price 10 % since 2011 1713-1905 Tie-up with AVL for engine development
Hero Moto Corp Ltd.
6
Political
• Land acquisition • Imposition of taxes
Technological
• 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 -
Economical
PEST
Social
• 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 prices
Green Technology Safe Manufacturing Rain Water Harvesting The Green Supply Chain Vocational Training Camp Safe Rider Program
Hero Moto Corp Ltd. 7
Hero Moto Corp Ltd.
8
Hero Moto Corp Ltd.
9
doc_589053914.pptx
PROJECT ON HERO MOTO CORP
Hero Moto Corp Ltd.
1
Issue
Cause
Effect
Theory
Solution
Competition
2010 Hero and Honda New brand Market Leader Hero Moto Corp Bajaj Auto, Hero - Honda started seeing identity & logodefensive should spend on Honda, TVS decides to move each other as Hero Moto Corp strategiesR&D for Motors, out of Joint competitors innovation, Mahindra - Position Venture develop new Scooters, LML, defence technology and Kinetic Motors, - Counter upgradation Suzuki, Royal offensive Enfield, Yamaha defence - Contraction defence
Honda didn't Hero group have intention might have to of sharing the pay higher upgraded royalties for the technology upgraded technology Refusal to merge the Spare Parts business
Hero Moto Corp buys stake in Honda
Hero Moto Corp Ltd.
2
Market Size
(Sales unit 2012)
15.4 Million (Approx.)
Motor cycles 10 Million
Scooters 2.7 Million
Moped 0.78 Million
Hero MotoCorp
6.23 Million
Motor cycles 58% market share 5.79 Million
Source:http://www.heromotocorp.com/hero_admin/data_content/pdf/annual_report/Annual_Report_2011_12.pdf
Hero Moto Corp Ltd.
Scooters 15.2% market share 0.41 Million
3
Revenue Stream
Years
Sales (units)
2007-08
33,37,142
2008-09
37,22,000
2009-10
46,00,130
2010-11
51,02,444
2011-12
62,35,205
25%
24%
20% 17% 16%
15%
15% 13% 12% 10% 10% 14%
Sales growth (nos.) %
11% 10%
11% 10%
OPM NPM
5%
0% 2008-09 2009-10 2010-11 2011-12
Hero Moto Corp Ltd.
4
Threat of New Entrants
Low Bargaining Power of Suppliers
Yamaha 4% Suzuki 4% Others 3%
High Bargaining Power of customers
Honda 16%
Hero MotoCorp 40%
TVS 14%
Munjal Showa AG Industries Satyam Auto components Sunbeam Auto Rockman Industries
Bajaj 19%
Extensive competition
2012 Domestic Sales – 15.4 Million Threat of substitutes
Hero Moto Corp Ltd.
5
Rs. 79
Rs. 45
Government Policies High import duty on motorbikes
76%
105%
R & D facilities in U.S. Erik Buell Racing $ 20 Millions
Core Competency
Exports 0.17 Mn two-wheelers
Share Price 10 % since 2011 1713-1905 Tie-up with AVL for engine development
Hero Moto Corp Ltd.
6
Political
• Land acquisition • Imposition of taxes
Technological
• 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 -
Economical
PEST
Social
• 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 prices
Green Technology Safe Manufacturing Rain Water Harvesting The Green Supply Chain Vocational Training Camp Safe Rider Program
Hero Moto Corp Ltd. 7
Hero Moto Corp Ltd.
8
Hero Moto Corp Ltd.
9
doc_589053914.pptx