spi ppt on hhm

8/7/2019 spi ppt on hhm

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+ =(since 1984..- 2004)

sUBMITTED bYiSHU mANN

nUPUR rOY

nAVED aLAM

rAHUL bHATTACHARYAlAIRENLAKPAM wINTON

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The Market before JV

Restricted foreign investment and License Raj

In 1980s govt. permitted JV with minorityforeign holding

The entry of these new foreign companiestransformed the very essence of competitionfrom the supply side to the demand side.


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WHY JV WITHHERO?

Wide distribution network through dealers

Better understanding of the market dynamics

Limited options with Honda

Wide experience in manufacturing of vehicles

Commitment to quality

Its relation with the distributors

Focus on financial and raw material processesSalience of HERO brand


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ABOUTHERO-HONDA

Came to existence in the year 1984.

Honda agreed to provide technical

know-hows to HHM. HHM gave a lumosome fees of Rs$500,000

Their 1st

model was CD-100motorcycle in the year 1985,poweredby the India's 1st 4 stroke engine


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VISSION & MISSION

VISION

The vision of a mobile and an empowered India,

powered by Hero Honda

MISSION

Hero

Hondas mission is to strive for synergybetween technology, systems and human resources

to produce products and services that meet thequality, performance and price aspirations of its

customers.


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Strengths

Ability tounderstandcustomer

needs and

wants

RecognisedandEstablished

brand name

Firstmovers

advantage

Aftersalesservice

Technology

Lowmaintena

ncecost

Fuelefficiency


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Weakness

R & D is not close to manufacturing plant

Brand name Hero itself has no influencein the automobile industry

New product needs time to be adopted

Imports of 31% spare parts.


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Opportunities

Global expansion

High demand in two wheeler industry Expansion of target market includes women

Become india's leader in two wheeler industry


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THREATS

Honda can take away market

share and cause JV to go sour

Bajaj motors is a strong

competitor Honda will introduce itself soon

in the market

Petrol price increase Pollution norms

Alluminium ans steel price

increase

Introduction of other players.


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FOUR STROKEENGINE

DISTRIBUTIONNETWORKLATEST TECHNOLOGY

FOCUS ONRURALMARKETALONGWITHURBANLOW COST &EFFICIENT

TECHNOLOGICALSUPPORTBRAND IMAGE


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BCG MATRIX

STAR SUZUKI ?MAHINDRABUSINESS BAJAJ TVS HONDA YAMAHA

GROWTH

RATE(%) HERO HONDA

cash COW DOG

1.6

motorcycleHero

HondaScooter

HHMMotorcycleBAJAj

ScooterHonda


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Benefits to HHM from HMC

y Brand name.

y R&D

y Technology.

y Design specification.

Technical expertise.

Benefits to HMC from HHM

1. Royalty 2. Market knowledge.

3.Penetrate Indian market .( increase in market size) 4. Work force


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VALUE CHAINANALYSIS

INBOUND LOGISTICS Coordination between its manufacturing

facilities & vendor ancillary units

Online real time connectivity between itsoperations & that of 72% of its 300 plusstrong vendor base

OPERATIONS

Annual production capacity is 4.5 million units

Ensure high efficiency

Low inventory

Benifits like increased cash flow


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INBOUND LOGISTCS

Less working capital

HHML demand in India & exports-95000bikes through its well established deliverychannel from the 3 plants

MARKETING & SALES

HHML has paid attention to stated & unstatedneeds of customer & improved 4 p's.

Clearly focusing on two markets HARGAONHARANGAAN

HHML strength its supply chain & distributionnetwork company having 3500 customer points

in India.


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OUTBOUND LOGISTICS

Less working capitalHHML demand in India & exports-95000bikes through its well established deliverychannel from the 3 plants

MARKETING & SALES

HHML has paid attention to stated & unstatedneeds of customer & improved 4 p's.

Clearly focusing on two markets HAR GAONHAR ANGAAN

HHML strength its supply chain & distributionnetwork company having 3500 customerpoints in India.


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PORTER'S 5 FORCE MODEL

1.THREATOF NEW COMPETITORS Mahindra & Mahindra tie up with Kinetic motors to

build two-wheeler business plan E-Bikes: Not just here to provide solution.

.They are here for keeps!

The Nano effect

High end bikes


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2.RIVALRYAMONGEXISTING FIRM

Economy segment: Bajaj (46%),Boxer

Executive segment: Hero Honda(67%),Splender& Passion

Premium segment: counter attack with CBZExtreme,Hunk ATFT

3.THREATOF SUBSTITUTEGOODS In Premium segment bikes

2nd hand cars


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4.SUPPLIERS BARGAINING POWER

Suppliers play an important role in the pricing of thebikes

HH in discussion with ENERGTEK ,a provider of

absorbed nature gas product5.BARGAINING POWER OF CUSTOMER HH retains its customers by providing very good

services with help of wide range of services-centersand customer services

HH is able to control bargaining power of customers byits affordable pricing along with best quality


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COMPETITIONREVS UP

Bajaj Auto

TVS-Suzuki

Escorts-Yamaha(EYML)

Kinetic Honda Ltd.


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OTHER CHALLENGES

Monto Motors(Rajasthan)

HMSI Ltd.


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CONCLUSION

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spi ppt on hhm