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Strategic Management

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 worlds 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 netprofit stood up at `1281.7 crore.
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Introduction
The Company has its most popular model
Hero Honda Splendor, which is the worlds
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 Groups 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.

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 Hondas 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.

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 customers
needs and wants.

Recognized and established brand


name.
Effective advertising capability.
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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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Opportunities
1.Global expansion into the Caribbean
and Central America.

2.Expansion of target market


(include women).
3.Become Indias 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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