Case 3 Honda
Hero Honda Motors Ltd is one of the leading companies in the two-wheeler industry. At present, it is the market leader in the motorcycle segment with around 47% the market share during 2000 to 2001. The company has emerged as one of the most successful players, putting themselves much ahead its competitors with its superior and reliable product quality, backed with great marketing techniques. The company has been consistently addressing the growing demand for motorcycles and has a cumulative customer base that is loyal to them.
The Indian two wheeler contributes the largest volume amongst all the segments in the automobile industry. Though the segment can be broadly categorized into 3 sub-segments(scooters, motorcycles and mopeds) some categories introduced can be a combination of two or more segments. The market primarily consists of five players in the two-wheeler segment with most of the companies having foreign collaborations with well-known Japanese firms earlier. However, most of the companies are now planning 100% subsidiaries in India.
1. The thing that stood out to me in this case study was the fact that Hero Honda depends on Honda for new products and this is a big weakness for them. The reason...