International Business

Strategy Assignment
COMPA N Y – ROYA L E N F I EL D
S UBMI T TED BY:
SA I CHA N D S | | 1 6 0 10 92 | | P G DI E 4 6 B
 Royal Enfield – Company Profile [1]
• Established in 1863, Royal Enfield is the oldest motorcycle brand in the world still in production, with
the Bullet model enjoying the longest motorcycle production run of all time
• One of the most popular Motorcycle companies in India with presence around the world
• Originally a British motorcycle company, Royal Enfield and indigenous Madras Motors, it is now a
subsidiary of Eicher Motors Limited, an Indian automaker

Classic 500 Continental GT

[1] Available at https://en.wikipedia.org/wiki/Royal_Enfield_(India) accessed on 12th December, 2017

 Royal Enfield in India [2]
In 1955, the Indian government started looking for a suitable motorcycle for its police forces and the army for
patrolling duties on the country's border – Bullet 350 was chosen as the most suitable bike
the Redditch Company partnered with Madras Motors in India to form what was called 'Enfield India' to assemble
these 350 cc Bullet motorcycle under licence in erstwhile madras (Now called Chennai)
As per their agreement Madras Motors owned the majority (over 50%) of shares in the company
UK production ceased in 1970 but production in India continued
Meanwhile the Bullet 350 continued to be manufactured in India and by the 1980’s the motorcycles were even
exported to Europe out of India
In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and later merged with it in 1994. It was
during this merger that the name Enfield India changed to Royal Enfield.

[2] Available at https://royalenfield.com/aboutus/overview, accessed on 12th Dec, 2017

Internationalization
Royal Enfield is mainly a centralized exporter with its
production facilities restricted to Chennai
Its objective for internationalization has been
majorly market seeking.
Major Transferrable FSAs were developed in the
home country and follows pattern 1 of Verbeke’s for
resource recombination capability
Royal Enfield is present in the developed countries,
including the UK, the US and in Europe as a maker of
modern classics for many years.
However, its biggest growth levers will be a few
markets in Latin America and South East Asia
 Internationalization Case – United
Kingdom
Though Royal Enfield owes its origins to this region, the company had been completely rooted
out post the closure of its production in the UK
Royal Enfield’s Indian business was moderate before the recent revival by Siddharth Lal took
over the reins
Once the company’s domestic business grew, the company is now focusing on the international
markets again
It recently opened technical centre in Leicestershire, UK which will help in Product
Development[3]
This will also help in better understanding of the European Market
Royal Enfield has hired several veterans of Triumph Motorcycles Ltd at its UK subsidiary

[3] Mint, http://www.livemint.com/Companies/d85VJaq0FpU4Sct75EJ3vK/Royal-Enfield-launches-Himalayan-at-Rs155-lakh.html accessed on 12th Dec,

2017
 Internationalization Case – United
Kingdom – CAGE Analysis
Cultural Administrative Geographical Economic

• English • Colonizer • Moderate • High income

Language • Common law port customers
• Strong • Political infrastructure available
motorbiking Friendship in India but • Potential for
traditions well R&D spillover
• Large Indian developed due to
diaspora ports in the greater
presence UK technology
availability

Hofstede Comparison [4]

[4] https://www.hofstede-insights.com/product/compare-countries/
Barlett/Ghoshal Model
• The market that Royal Enfield aims for is
the niche biker groups that favour
traditional and vintage feel of the product

• The customers across the globe have the

same product requirement

• Hence it follows International Strategy

Major challenges & opportunities
Product is not at par with its international competitors in terms of performance, major
development required to justify the high price
Aftermarket service in International markets is sub standard
Countries such as Columbia, Thailand and Latin America have great potential for growth in the
“mid-range” bike segment
References
[1] Available at https://en.wikipedia.org/wiki/Royal_Enfield_(India) accessed on 12th December, 2017
[2] Available at https://royalenfield.com/aboutus/overview accessed on 12th Dec, 2017
[3] Mint, http://www.livemint.com/Companies/d85VJaq0FpU4Sct75EJ3vK/Royal-Enfield-launches-
Himalayan-at-Rs155-lakh.html accessed on 12th Dec, 2017
[4] https://www.hofstede-insights.com/product/compare-countries/
Thank You