History and Background

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is a

motorcycle and scooter manufacturer based in India.

Hero

Honda started in 1984 as a joint venture between Hero Cycles of

India and Honda of Japan. The company is the largest two wheeler
manufacturer in India.

In December 2010, the Board of Directors of the Hero Honda Group

have decided to terminate the joint venture between Hero Group of
India and Honda of Japan in a phased manner.

Hero MotoCorp
Parent Company

Hero Group

Sector

Two-Wheelers

Tagline/Slogan

Hum mei hai Hero; Desh ki Dhadkan

Segment

Young boys looking for fast sporty bikes for Indian

roads

Target Group

Young boys in the age 18-30 middle class

USP

Wide product variety, excellent brand equity & high

customer loyalty

Positioning

Every person has a hero and a winner within ones

self

Brands

CBZ
Passion
Splendor

Competitors

Yamaha
Bajaj Auto Limited
Harley Davidson

Karizma
Pleasure
Impulse
TVS
Suzuki
Royal Enfield

SWOT ANALYSIS
Strength

Strong brand
Growing brand
Largest manufacturing facilities
Serving worldwide
Strong Revenues
Strong profits
R&D

Weaknesses

Product recalls
Shortage of spare parts
Weak sales in Korea
Production losses
Low sales in Japan
Limited bike designs

Opportunities

Develop fuel efficient cars

Hybrid cars
Providing training to dealers
Boosting fuel efficiency
Optimize production processes to minimize losses
Launch electric cars

Threats

Conflict between south and north Korea

Exchange rates
Inflation
High fuel prices
Improvement in public transport
Competition

Vision
The companys new identity reflects its commitment towards
providing sturdy and solid world-class mobility solutions with a
renewed focus on steadily moving ahead and expanding the footprint
in the global arena.

Mission
Its mission is to become a global enterprise fulfilling its customers
needs and aspirations for mobility, solidity and sturdiness.
The company aims to set benchmarks in technology, style and quality
to convert its customers into brand advocates. The company provides
an engaging environment for its people to perform to their true
potential. It aims to continue its focus on value creation and enduring
relationships with its partners.

Strategy
Their key strategies 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 and ensure customer and
shareholder delight.

Future Prospects

The company has recently tied up with a few International

Automotive companies for technological expertise that would be
adapted in the Hero MotoCorp products.

The company is planning to think beyond the two wheeler market, the
way Bajaj Auto is operating. Theyre already in the three wheeler
segment and with the coming up of RE60, theyve forayed into the
passenger car segment as well. This new segment will help the
company in meeting a target of $10 billion turnover over a span of
next 5 to 6 years.

The company would launch bikes which incorporates EBRs

technology by the next fiscal year.

 The

company is also looking forward to get into tie ups

with few other companies that would help Hero MotoCorp
to become superior when it comes to the technological
front.

The

company has started working on the 100 125cc

engines as of now. Wed always been quoting the news that
HMC is all set to launch low cost bikes in the price band of
INR 30,000 40,000.

There

is a plan to diversify into other segments, maybe cars

or commercial vehicles though thats a more mid and
long-term strategy.

Environmental Policy
The company have been committed to demonstrate excellence in
environmental performance on a continuous basis, as an intrinsic
element of corporate philosophy.

To achieve this they are committed themselves to:

Integrate

environmental attributes and cleaner production in all our

business processes and practices with specific consideration to
substitution of hazardous chemicals and strengthening the greening of
supply chain.

Comply

with all applicable environmental legislation and also

controlling environmental discharges through the principles of "alara"
(as low as reasonably achievable).

 Continue

product innovations to improve environmental

compatibility.

Institutionalize

resource conservation in the areas of oil,

water, electrical energy, paints and chemicals.

Enhance

environmental awareness of their employees and

dealers / vendors, while promoting their involvement in
ensuring sound environmental management.