Hero honda swot analysis

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Hero honda swot analysis

  1. 1. SWOT ANALYSIS HERO HONDA Presented By : - Mukul Verma
  2. 2. SHORT INTRO <ul><li>Market leader in the two wheeler segment not only in India but </li></ul><ul><li>also is the number one two wheeler company in the world . </li></ul><ul><li>The company’s name is synonymous with fuel-efficient bikes and </li></ul><ul><li>longevity . </li></ul><ul><li>The company has a presence in all bike segments viz. </li></ul><ul><li>economy(CD 100SS,CD Dawn), executive(Super Splendor, </li></ul><ul><li>Splendor+) and premium (Karizma, CBZ & Hunk ). </li></ul><ul><li>Splendor is the most successful product of the company and </li></ul><ul><li>accounts for almost 50% of the company’s turnover. </li></ul><ul><li>joint venture agreement between the Munjal family’s Hero Group </li></ul><ul><li>and Honda Motor Company (HMC) of Japan, each having 26% </li></ul><ul><li>stake in the company. </li></ul>
  3. 3. Strengths <ul><li>Huge brand equity/reputation among customers </li></ul><ul><li>Research and development- joint venture with Japanese </li></ul><ul><li>giant – HONDA </li></ul><ul><li>Models/products in almost every bike segment </li></ul><ul><li>Healthy growth in profits </li></ul><ul><li>Brilliant relations with customers and dealers </li></ul><ul><li>Strong Resale Value </li></ul><ul><li>International Technology with international collaboration </li></ul>Contd…
  4. 4. Strengths <ul><li>Contd… </li></ul><ul><li>3 worldclass advanced manufacturing plant (Haridwar, </li></ul><ul><li>Darukhera & Gurgaon) </li></ul><ul><li>Strong Research & Development </li></ul><ul><li>Quality product for each category </li></ul><ul><li>Dedicated Human Resource </li></ul><ul><li>Awareness in the people </li></ul><ul><li>Highly competitive features </li></ul>
  5. 5. Weakness <ul><li>Hero is very much dependent on Honda </li></ul><ul><li>Low cash reserves due to massive dividend payouts </li></ul><ul><li>Very difficult to cop up if contract discontinues </li></ul><ul><li>Virtual absence in the highly lucrative bike segments </li></ul><ul><li>Imports >31% of its spare parts requirements </li></ul><ul><li>Slow to react to market changes- Slow innovation- late </li></ul><ul><li>entrants into the 125cc segment </li></ul>
  6. 6. <ul><li>Contd…. </li></ul><ul><li>Too much dependence on few models </li></ul><ul><li>Absence of digital speedometer except Karizma </li></ul><ul><li>Absence of variants except Hunk </li></ul>Weakness
  7. 7. Opportunities <ul><li>Bikes Segment is still a fast growing sector </li></ul><ul><li>HHML can still make it up by launching a strong model in </li></ul><ul><li>150cc segment </li></ul><ul><li>125cc bike segment - This segment is yet to pick pace </li></ul><ul><li>Exports market is yet to be properly exploited </li></ul><ul><li>Cruiser bike segment is unexplored by HHML </li></ul><ul><li>Variants can be launched to increase the market share </li></ul><ul><li>Hero Honda is the most reliable bike manufacturer in India </li></ul><ul><li>Strong brand follower </li></ul>
  8. 8. Threats <ul><li>Hero Honda will need to have a bigger presence in the </li></ul><ul><li>executive segment </li></ul><ul><li>It will be a great threat for Hero is the collaboration breaks </li></ul><ul><li>Up </li></ul><ul><li>All major bike makers in the world are lining up for India </li></ul><ul><li>Absence in 150cc could harm the growth plans of HHML as </li></ul><ul><li>future lies in the 150cc and 125cc markets </li></ul><ul><li>Low cash reserves </li></ul><ul><li>HHML is losing a foothold in the exports market which is </li></ul><ul><li>now dominated by Bajaj </li></ul><ul><li>Strong competition from Bajaj, Yamaha & TVS </li></ul>

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