SWOT ANALYSIS

HERO HONDA
Presented By : - Mukul Verma
 SHORT INTRO
• Market leader in the two wheeler segment not only in India but
also is the number one two wheeler company in the world.

• The company’s name is synonymous with fuel-efficient bikes and

longevity.

• The company has a presence in all bike segments viz.

economy(CD 100SS,CD Dawn), executive(Super Splendor,
Splendor+) and premium (Karizma, CBZ & Hunk ).

• Splendor is the most successful product of the company and

accounts for almost 50% of the company’s turnover.

• joint venture agreement between the Munjal family’s Hero Group

and Honda Motor Company (HMC) of Japan, each having 26%
stake in the company.
 Strengths
• Huge brand equity/reputation among customers

• Research and development- joint venture with Japanese

giant – HONDA

• Models/products in almost every bike segment

• Healthy growth in profits

• Brilliant relations with customers and dealers

• Strong Resale Value

• International Technology with international collaboration

Contd…
 Strengths
Contd…

• 3 worldclass advanced manufacturing plant

(Haridwar,
Darukhera & Gurgaon)

• Strong Research & Development

• Quality product for each category

• Dedicated Human Resource

• Awareness in the people

• Highly competitive features

 Weakness
• Hero is very much dependent on Honda

• Low cash reserves due to massive dividend payouts

• Very difficult to cop up if contract discontinues

• Virtual absence in the highly lucrative bike segments

• Imports >31% of its spare parts requirements

• Slow to react to market changes- Slow innovation- late

entrants into the 125cc segment
 Weakness

Contd….

• Too much dependence on few models

• Absence of digital speedometer except Karizma

• Absence of variants except Hunk

 Opportunities
• Bikes Segment is still a fast growing sector

• HHML can still make it up by launching a strong model in

150cc segment

• 125cc bike segment - This segment is yet to pick pace

• Exports market is yet to be properly exploited

• Cruiser bike segment is unexplored by HHML

• Variants can be launched to increase the market share

• Hero Honda is the most reliable bike manufacturer in India

• Strong brand follower

 Threats
• Hero Honda will need to have a bigger presence in the
executive segment

• It will be a great threat for Hero is the collaboration breaks

Up

• All major bike makers in the world are lining up for India

• Absence in 150cc could harm the growth plans of HHML as

future lies in the 150cc and 125cc markets

• Low cash reserves

• HHML is losing a foothold in the exports market which is

now dominated by Bajaj

Strong competition from Bajaj, Yamaha & TVS