Hero Motocorp is a popular Indian two wheeler manufacturing company that makes motorbikes and scooters . It was started in 1984 by Brijmohan Lall Munjal and the company is located in New Delhi , India . Hero Motocorp is the biggest company in the world when it comes to making two wheelers like bikes and scooters . In India , many people purchase their motorbikes as they have a big share of the market . The company offers various types of bikes and scooters for all kinds of customers , which makes them very popular .
In this article , swot analysis of hero motocorp provides strengths , weaknesses , opportunities and threats to hero motocorp . This analysis helps students to know its business model and also helps investors who want to know the business and growth prospectives in simple words .
Contents
hero motocorp company profile
The following list provides complete primary details of the company which helps you in further understanding of swot analysis of hero motocorp :
- Company Name : Hero MotoCorp Limited
- Founded : 1984 January 19
- Founder : Brijmohan Lall Munjal
- Headquarters : New Delhi , India
- Former Name : Hero Honda until 2011
- Industry : Automotive (Motorcycles and Scooters)
- Market Share : Approximately 46% in the Indian two wheeler market
- Total Vehicles Sold : Over 110 million since established
- Product Range : Motorcycles, scooters, and electric vehicles
- Popular Models : Hero Splendor , Hero Passion , Hero Glamour
- Manufacturing Plants : 8 plants across India
- International Presence : Operations in over 47 countries , including Colombia and Bangladesh
- Dealership Network : Over 6,500 dealerships and service centers
- Focus Areas : Innovation, sustainability , and electric mobility
- R&D Investment : Important investment in research and development
swot analysis of hero motocorp – Strengths
The following points shows the positive strengths of the company which are internal factors that helps the company to withstand in the market :
Strong Brand Value :
Hero Motocorp is a very popular two wheeler manufacturing brand in India . People trust their brand as they provide good quality motorbikes and scooters at low prices . It also provides a good mileage of 45 – 50 km for bikes and scooters which consumes less petrol and covers long distances .
For Example : The Hero Splendor is one of the most popular bikes in India . Many people use it because of its quality spare parts and good mileage .
Wide Availability :
Hero motocorp has a large number of showrooms and service centers all over India. Customers can find their showrooms and service centers to purchase their bikes or get servicing without any difficulty .
For Example : Even if you live in a small town, you can easily find a Hero showroom or service center to buy a bike or get your bike repaired .
Variety of Products :
Hero motocorp offers a diverse range of products and new models of bikes and scooters for young riders to families for daily use . Some of the products of Hero are Karizma , Hunk , CBZ Xtreme, Super Splendor , Glamour Fi , Splendor+ , Splendor NXG, Passion Plus and the scooter Pleasure .
Good Research and Development :
Hero Motocorp invests a lot in research and development to manufacture new and better bikes for different country markets . These bikes not only give good mileage but also look stylish . This helps Hero survive in the market with its cool and new innovative two wheeler models .
For Example : The Hero Xpulse 200 is a bike made for people who like to go on rough roads . Hero MotoCorp made it strong and safe, so it is great for adventures.
Financial Strength :
Hero motocorp has strong financial strength . The company does not have many loans or debts . It continuously invests in developing new models for changing customers tastes and preferences . They have sold Over 110 million products since their establishment . They have a market share of approximately 46% in the Indian two wheeler sector.
For Example : The Hero Xpulse 200 is a bike made for people who like to go on rough roads . Hero Motocorp made it strong and safe , so it is great for adventures.
Large Customer Base :
With millions of bikes sold ( Over 110 million ), Hero Motocorp has a large number of loyal customers . This large customer base helps the company maintain its position in the market .
swot analysis of hero motocorp – Weaknesses
Dependence on the Indian Market :
Hero motocorp is completely dependent on the Indian market . Most of their customers come from India . This is first a red flag to the company . As any disturbances in the economy can affect the company turnover very badly . Economic disturbances like inflation , recession , etc affect the buying power of the people. In this situation very few people will buy bikes as a result the company makes less earnings .
High Competition:
In India , There are many popular two wheeler brands which are well established and have a good brand value . People have many options if they want to buy a bike . This makes Hero motocorp difficult to hold their customers and attract new customers to survive in the market and keep its position in the market . Hero motocorp has to develop new innovative bikes at affordable prices to the people which match their tastes and preferences .
Employee Turnover :
Employee turnover means employees leaving the company . This happens when employees face difficulty in the work area , no work life balance or personal reasons . Employee turnover percentage is high in Hero motocorp . Hero motocorp has to invest a lot in onboarding new workers and training them . This disrupts company’s productivity .
swot analysis of hero motocorp – Opportunities
Expansion into New Markets:
Hero motocorp is only focused on the Indian market . It has many untapped locations globally . If the company establishes its presence in other countries, it increases revenue and profitability. It also spreads operational risks across different regions , reducing the company’s overall risk profile.
Electric Vehicles:
The Indian government is encouraging the use of electric vehicles and promoting manufacturing companies . Hero Motocorp can take advantage of these government policies to grow its business . Investing to develop EV bikes helps the company to capture the EV market and can see profits in the long term .
Focus on Sustainability:
As more people are becoming aware about environmental issues , Hero Motocorp can work on developing their production processes more sustainable . This means they can focus on using resources more efficiently and reducing waste , which will help the environment . A focus on sustainability can also make their brand more attractive to customers who care about the Environment .
swot analysis of hero motocorp – Threats
Fluctuating Raw Material Costs :
Hero Motocorp requires raw materials like steel and rubber to manufacture their motorcycles . Sometimes , Due to inflation the prices of these materials go up and down in a way that is hard to predict . If the prices go up , it costs more for Hero Motocorp to make their bikes . If they can not charge their customers more money for these bikes , the company might make less profit .
Bargaining Power of Buyers :
Customers today have access to the internet and other sources through which they can compare products of similar kind and choose the best one which is affordable . Due to Price comparison customers have the power to bargain and buy at a low price making less profit to the company .
Expansion of Public Transportation :
Due to economic conditions and government schemes , public transportation is developed
a lot . Expansion of these Public transportation middle class families prefer to travel in public transports to save money . Due to this sales of Motorbikes company will decrease and may shutdown .
Conclusion
Hero motocorp company has a strong brand value , Financial stability and investment in research and development helps the company in the long run .
Weaknesses like high employee turnover , focusing only on Indian markets are some of the factors which the company needs to address . It also has untapped regions in national and international markets which helps the company to increase its revenue and performance .
Strengths and weaknesses are internal factors which a company takes care of by analyzing its profits and gaps in profits . threats are the external factors which a company needs to tackle otherwise it will lose its market share and customer base . main threats for the company are fluctuation in raw materials cost and employee turnover .
By balancing its strengths and weaknesses , taking advantage of new opportunities and handling challenges effectively will help Hero motocorp to remain as the top motorcycle and scooter company in the world .
FAQs
1. When was Hero MotoCorp founded?
Ans. It was founded in 1984 as a joint venture between Hero Cycles and Honda, becoming independent in 2010.
2. Is Hero Moto a good investment option?
Ans. It depends on the investment size and Risk taking factor of the investors .
3. What are some popular Hero MotoCorp models?
Ans. Karizma , Hunk , CBZ Xtreme, Super Splendor , Glamour Fi , Splendor+ , Splendor NXG, Passion Plus and the scooter Pleasure .
4. Is Hero MotoCorp a listed company?
Ans. Yes , Hero Motocorp is a listed company and is traded on stock exchanges such as, NSE and BSE.
5. In how many countries does Hero MotoCorp have a presence in?
Ans. As of April 2024, Hero MotoCorp has presence in 47+ countries .
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