This joint venture has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. Hero Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian motorcycle company. This is a relationship so harmonious that Hero Honda has managed to achieve. Introduction to Company Hero Motocorp Ltd. In terms of sales volume, it moved to the top position as the largest manufacturer of two wheeler in the world in the year The company has successfully managed to maintain this position ever since.
Hero MotoCorp Case Study Analysis & Solution
Hero MotoCorp [10 Steps] Case Study Analysis & Solution
Trek has launched a program which is Trek credit card. It helps to finance the bicycle enthusiasts to achieve their dreams to have a Trek bicycle. Under this program, bicycle enthusiasts can purchase a Trek bicycle easily by using the installment method. Besides that, Trek have launched free bicycle maintanence program to capture the continuous support from the customers. The company had to competes with a large number of firms. Also, substitutes such as private cars and public transportation were available to their potential customer. Based on the Five Forces Analysis, Harley-Davidson must maintain competitiveness, especially in terms of product quality, to protect its business from other firms.
Hero Honda started its operations in as a joint venture between Hero Cycles sometimes called Hero Group, not to be confused with the Hero Group food company of Switzerland of India and Honda of Japan. This decision came 18 months after its split from Hero Honda. During the s, 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 , the company became the second largest two-wheeler manufacturing company in India and globally.
Announcing the break-up of joint venture company Hero Honda Motors Ltd HHML , Pawan Munjal cited changing market dynamics coupled with ambitions of growing beyond India as the two compelling reasons for the split. Under the present agreement, HHML was not permitted to tap overseas markets, seek technology from any other company and even participate in large scale exports. He did not disclose the price at which Honda has agreed to sell its shares. Munjal declined to confirm if there was a lump sum royalty payment. Munjal also clarified that the deal envisages a new technical agreement, which will cover existing as well as new products till