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HERO HONDA
ABSTRACT
The amount of research regarding the topic “Hero vs Honda” is so vast. The
topic is new; it is as about the merging and formation of the organizations. The
companies after walking hand-in-hand for 27years are now standing head to
head in Indian two-wheeler market. Now their marketing strategies to earn
market share. This study verifies the marriage between the Mega
Corporation from Japan Honda and the world's leading maker of
cycles Hero. It was a remarkable union. One that stood the test of time. The
alliance started in the year 1984 and was intact for more than 25 years (ended in
the year 2010.
INTRODUCTION
Some of the reasons that The breakup of Hero Honda after a marriage spanning
25 years sent shockwaves across the entire Indian auto industry. Hero Honda
had brought the concept of a two–wheeler in India’s collective consciousness. It
is also regarded as the largest manufacturer of two–wheelers in the world. Then
why the breakup of such an uber successful marriage? The reason cited includes
disagreement over various issues and deals.
LITERATURE REVIEW
Hero Honda …no! It’s Hero vs. Honda. There was a time when I used to
compare the sales figures of Hero Honda with Bajaj Auto. Both were arch rivals
as the competition between the two groups in two-wheeler segment is very stiff.
But who knows about the biggest rivalry yet to come. Two wheeler segments
has got one more competitor just because there is something unexpected
Happened in the recent past. It was 2010 when I first heard the news about Hero
motocorp and Honda Motorcycles and Scooters (HMSI) rift. And then the
biggest news appeared on different news channels, Newspapers, Magazines and
on Internet somewhere in October 2010
And therefore Honda India is varying of sharing this technology with the Hero
Group. This would have also resulted in greater royalty payments towards
Honda which has already impacted the profitability of Hero Honda for many
years.
Future?
Since the name Hero – Honda can be used up to 2015, I am sure it gives a great
chance for both – the Hero Group as well as Honda India to develop their
respective strategies. With the infrastructure already there and continuous
research and development, both these organizations would be really successful
in the long run.
It all depends on how fast they are able to leverage their individual identities
and move out of the “Dash Ki Dhaka” bit!
SURVEY ANALYSIS AND FINDINGS
These are like the after effects after a massive earthquake. The after -effects at
the end of a long relationship also affects the society in some way to other
.Something similar happened in this case also. The shares of both Hero
monocarp as well as HMSI falls negatively and sales were also affected.
People were not ready to buy the bikes of Hero because the technology of
Honda was missing and same is the case with Honda as buyers didn’t find any
Indian connection and engineering which they previously get from Hero.
Recovery by Hero
Recovery by Honda
CONCLUSION
The rising differences between the two partners that gradually emerged as an
irritant. Differences had been brewing for few years before the split over a
variety of issues, ranging from Honda's reluctance to fully and freely share
technology with Hero (despite a 10-year technology tie-up that expires in 2014)
as well as Indian partner's uneasiness over high royalty payouts to the Japanese
company. Another major irritant for Honda was the refusal of Hero
Honda (mainly managed by the Munjal family) to merge the company's spare
parts business with Honda's new fully owned subsidiary Honda Motors
India (HMI)
The friends have parted ways. They are now Hero MotoCorp and Honda
Motorcycle & Scooter India Pvt. Ltd.
REFERENCES