Hero MotoCorp Limited

 INTRODUCTION OF THE COMPANY

 Hero Motocorp Ltd., formerly Hero Honda, is an

Indian motorcycle and scooter manufacturer based in New Delhi, India. The company
is the largest two-wheeler manufacturer in the world, and also in India, where it has a
market share of about 46% in the two-wheeler category.
 Hero MotoCorp two wheelers are manufactured across 4 globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are
located in the state of Haryana in northern India. The third and the latest
manufacturing plant is based at Haridwar, in the hill state of Uttarakhand. The market
capitalization of the company touched the magic figure of Rs 30,800 crore on 31st
March 2013. The company started its operation in 1984 as a joint venture with Hero
Cycle.

 HISTORY- Inception of the company

 Hero Honda started its operations in 1984 as a joint venture between Hero

Cycles (sometimes called Hero Group of India and Honda of Japan.  
 "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 Motors Limited at Dharuhera,
India. Munjal family and Honda group both owned 26% stake in the Company.
 In the year 1983 they signed a joint collaboration agreement and formed the company.
The joint venture between India's Hero Group and Honda Motor Company Japan has
not only created the world's single largest two wheeler company but also one of the
most successful joint ventures worldwide.
 In the year 1985 the company commenced their commercial production at Dharuhera
plant in Haryana and introduced their first motorcycle CD 100 in the market. 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 emphasised the motorcycle's fuel efficiency helped the company grow
at a double-digit pace since inception.
 In 2001, the company became the second largest two-wheeler manufacturing
company in India and globally. It maintains global industry leadership to date.

The termination of Honda Joint venture

 By December 2010, the board of directors of the Hero Honda Group had decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner.
 The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.Under
the joint venture Hero Group could not export to international markets (except Nepal,
Bangladesh and Sri Lanka) and the termination would mean that Hero Group could
now export.

Formation of the new company

 The name of the company was changed from Hero Honda Motors Limited to Hero
MotoCorp Limited on 29 July 2011. The new brand identity and logo of Hero
MotoCorp were developed by the British firm Wolff Olins. 
 Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is
free to use any vendor for its components instead of just Honda-approved vendors.
 On 21 April 2014, Hero MotoCorp announced their plan on a ₹2.540
billion (US$36 million) joint venture with Bangladesh's Nitol-Niloy Group in the
next five years to set up manufacturing plant in Bangladesh. The plant started
production in 2017 under the name "HMCL Niloy Bangladesh Limited". Hero
MotoCorp owns the 55% of the manufacturing company. Hero also updated its
100cc engine range in 2014 for 110cc bikes except Hero Dawn.

 VISON of the Company

The story of Hero Honda began with a simple vision - the vision of a mobile and
an empowered India, powered by its two wheelers. Hero MotoCorp Ltd.,
company's new identity, reflects its commitment towards providing world class
mobility solutions with renewed focus on expanding company's footprint in the
global arena.

 MISSON of the Company

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers'

needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The company will
provide an engaging environment for its people to perform to their true potential.
It will continue its focus on value creation and enduring relationships with its
partners.

 Objectives of the Company

 Hero MotoCorp's key objectives are to build a robust product portfolio across
categories.
 Explore growth opportunities globally.
 Continuously improve its operational efficiency.
  Aggressively expand its reach to customers.
 Continue to invest in brand building activities.
 Ensure customer and shareholder delight.

 BUSINESS DEFINITION –
With innovation at the core of its philosophy, the New Delhi (India)
headquartered Hero MotoCorp has been at the forefront of designing and
developing technologically advanced motorcycles and scooters for customers
around the world.
It became the world’s largest two-wheeler manufacturer in 2001, in terms of unit
volume sales in a calendar year, and has maintained the coveted title for the past
18 consecutive years.
With over 90 million satisfied customers across the globe, it continues to
champion socio-economic progress and empowerment through its range of
products and services.
Led by Dr Pawan Munjal, Chairman, Hero MotoCorp, it has taken rapid strides to
expand its presence to 37 countries across Asia, Africa, and South & Central
America.
Hero MotoCorp is a truly global enterprise with a workforce that comprises of
people from different nationalities including India, Bangladesh, Colombia,
Germany, Austria, Japan, and France.
Hero MotoCorp is the dominant market leader in India – the world’s largest two-
wheeler market – with over 50% share in the domestic motorcycle market.

 SWOT Analysis of the company

SWOT analysis is a strategic planning technique used to help a person or

organization identify strengths, weaknesses, opportunities, and threats related to
business competition or project planning.

 STRENGTHS –

 Huge Brand Equity – This is really one of the biggest strengths of Hero Motocorp.

This company the biggest player in the market of two-wheelers.
 Strong Brand Image – A Company can only grow once it is popular by its brand
name. Hero Motocorp is really one of those companies who can play hard on the
popularity field.
 Excellent Distribution – Hero Motocorp has more than 3000 dealerships and
service centers which have made it the leading company in the industry.
 Wide Variety of Products – The more products a company launch successfully,
the more popular it becomes. Hero Motocrop is, therefore, the real hero in the
market.
 Awards and Recognition – Customers can rely on a brand when it is
acknowledged with rewards and awards. Hero Motocorp has received many in all
these years.
  Sponsorships – Events, related to sports and racing provide sponsorships to the
company that has made it hugely popular of all its competitors.

 WEAKNESS –

 Strong Competition – There are lots of national and international players in the

market who give tough competition to the Hero Motocorp.
 Lack of Innovation – Maximum products of Hero Motocorp comes with almost
similar features, whether is design or funtions.

 OPPORTUNITIES –

 Growing Industry – The demand for two-wheelers are increasing a lot, and

that brings the opportunity for the company to grow bigger.

 THREATS –

 Strong Competition – There are lots of other companies which are emerging
rapidly and give tough competition to the company.
 Betterment of Public Transport – As other modes of transportation have
increased a lot, the use of two-wheelers is not in demand.

 PEST ANALYSIS
PEST Analysis (political, economic, social and technological) is a management
method whereby an organization can assess major external factors that influence its
operation in order to become more competitive in the market.

 POLITICAL FACTORS –

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of
corruption, as the resulting repercussions may lead to possible impeachments or
resignations of high level government employees.
 The laws that the country enforces, especially with regards to business, such as
contract law, as they dictate what Hero MotoCorp Championing a Cause is and is
not allowed to do.
 Whether or not a company’s intellectual property is protected. For example, a
country that has no policies for IP protection would mean that entrepreneurs may
find it too risky to invest in Hero MotoCorp Championing a Cause
 The trade barriers that the host country has would protect Hero MotoCorp
Championing a Cause; however, trade barriers that countries with potential trade
partners would harm companies by preventing potential exports.
 A high level of taxation would demotivate companies like Hero MotoCorp
Championing a Cause from maximizing their profits.
 The risk of military invasion by hostile countries may cause divestment from
ventures.
 A low minimum wage would mean higher profits and, thus, higher chances of
survival for Hero MotoCorp Championing a Cause.

 ECONOMIC FACTORS –

 The economic system that is currently operational in the sector in question-

whether it is a monopoly, an oligopoly, or something similar to a perfect
competition economic system.
 The rate of GDP growth in the country will affect how fast Hero MotoCorp
Championing a Cause is expected to grow in the near future.
 The interest rates in the country would affect how much individuals are willing to
borrow and invest.
 How efficiently the financial markets operate also impact how well Hero
MotoCorp Championing a Cause can raise capital at a fair price, keeping in mind
the demand and supply.
 The exchange rate of the country and the stability of the currency is also
important, an unstable currency discourages international investors.
 A high level of unemployment in the country would mean there is a greater supply
of jobs than demand, meaning people would be willing to work for a lower wage,
which would lower the costs of Hero MotoCorp Championing a Cause.

 SOCIAL FACTORS –

 The demographics of the population, meaning their respective ages and genders,
vastly impact whether or not a certain product may be marketed to them. Makeup
is mostly catered to women, so targeting a majority male population would be less
population than targeting a population that is mostly female.
 The class distribution among the population is of paramount importance: Hero
MotoCorp Championing a Cause would be unable to promote a premium product
to the general public if the majority of the population was a lower class; rather,
they would have to rely on very niche marketing.
 To some extent, the differences in educational background between the marketers
and the target market may make it difficult to relate to and draw in the target
market effectively. Hero MotoCorp Championing a Cause should be very careful
not to lose the connection to the target market's interests and priorities.
 Hero MotoCorp Championing a Cause needs to be fully aware of what level of
health standards, reactions to harassment claims and importance of environmental
protection prevail in the industry as a whole, and thus are expected from any
company as they are seen as the norm.
 TECHNOLOGICAL FACTORS –

 The recent technological developments and breakthroughs made by competitors,

as mentioned above. If Hero MotoCorp Championing a Cause encounters a new
technology that is gaining popularity in the industry in question, it is important to
monitor the level of popularity and how quickly it is growing and disrupting its
competitors’ revenues. This would translate to the level of urgency required to
adequately respond to the innovation, either by matching the technology or
finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the
industry, leading to other firms copying the technological processes/ features of
Hero MotoCorp Championing a Cause
 How much an improvement of technology would improve/ transform what the
product initially offers. If this improvement is drastic, then other firms in the
industry suffer more heavily.
 The impact of the technology on the costs that most companies in the industry are
subject to have the potential to increase or reduce the resulting profits greatly. If
these profits are great in number, they may be reinvested into the research and
development department, where future technological innovations would further
raise the level of profits, and so on, ensuring sustainable profits over a long period
of time.

 THE WAY FORWARD –

The new Hero is rising and is poised to shine on the global arena. Company's new
identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus
on mobility and technology and creating global footprint. Building and promoting
new brand identity will be central to all its initiatives, utilizing every opportunity
and leveraging its strong presence across sports, entertainment and ground-level
activation.

A company that believes in maintaining ecological standards along with business

standards. "We must do something for the community from whose land we
generate our wealth." - Chairman Dr.Brijmohan Lall Munjal. Hero MotoCorp’s,
goal isn't limited to business but encompasses the broader spectrum of serving
humanity through social initiatives. Hero MotoCorp takes a stand as a socially
responsible enterprise respectful of its environment.

Ready for Tomorrow - The current global technology landscape is ever-evolving

and they continue to keep theirselves aligned with the changing world trends.
During FY’19, enterprise systems in production technology got further
streamlined across the globe. In an endeavour to stay ahead of the curve, they also
adopted technologies such as Robotic Process Automation, Artificial Intelligence
(AI), IOT, Block Chain and Machine Learning, to name a few. In their key
international markets, like in Argentina, they have developed a single-webpage
user interface, where the customer gets all the relevant information regarding –
sale, insurance, finance and accessories – on a single window. Such innovative
new initiatives enable us to differentiate ourselves from competition. At the same
time providing a value-added and convenient purchase experience to the
customer.

At Hero, every member of the family has a key role to play, as they progress
towards becoming a global entity and achieving greater success. they assure that
they will continue to create value for each one, while continuing with our efforts
to create a greener, safer and equitable society.