Motocorp Case Study

Extended Essay
In
Business and Management

Karan Ramjiyani

Title: The strategy taken by the Hero after the split.

Research Question: What was the impact on the company Hero MotoCorp after the termination of joint venture of Hero Honda?

Contents INTRODUCTION 3
BACKGROUND 3
RESEARCH PROPOSAL 4
RESEARCH QUESTION 4
METHODOLOGY 4
LIMITATIONS OF SOURCE 5
SECONDARY DATA FINDINGS 5
SALES FIGURE 6
MARKET SHARE 6
RANKING 7
SALES COMPARISON 8
ANALYSIS 9
SWOT ANALYSIS 9
Strength 9
Weakness 10
Opportunity 10
Threats 10
PEST ANALYSIS 11
Political 11
Economical 11
Social 11
Technological 11
BCG MATRIX 12
TECHNOLOGY 12
Impact 12
Response 12
BRAND IMAGE 13
Impact 13
Response 14
PORTER’S FIVE FORCE ANALYSIS 14
Threat of New Entry 15
Competitive

 After the split with Honda, customer loyalty may have went down
 Dependence on government policies and rising fuel price
 Better public transport will affect sales of Hero

Strength
Hero MotoCorp Ltd. already has a well-known brand image in the market, and also has customer loyalty and support . The company is the top manufacturer of bikes, and also has strong distribution network in India.
The company also has a wide portfolio of bikes such as CBZ, Karizma, Passion, Pleasure, Splendor, Impulse, etc. Hero MotoCorp has a good research and development, and has a product in almost every market segmentation.

Weakness
The company Hero MotoCorp’s major weakness is that they have no product in the premium range of segmentation. Hero only makes bikes/scooters for the middle class segment of the market, it doesn’t have any high end motor bikes for the higher class segment of the

This loss of technology will affect Hero MotoCorp significantly. They did not have any existing structure in place that would aid in product development. Hero MotoCorp does not have any team nominated for developing technology for its products. The business must create a technology development team and secure the buildings and equipment that the team requires. Without a team for development, Hero MotoCorp won’t be able to function. Unfortunately, gathering a team of competent researchers will be difficult in a short span of time. The short time span restricts the amount of time that can be spent in training them and assessing their performances. If the business hires unskilled scientists, the business will be left with sub-standard products. Hero MotoCorp must create new technology on its own or enter an agreement with another business to buy