Hero Honda Motors (india) Ltd: Is It Honda That Made It a Hero?
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Hero Honda Motors ( India) Ltd: Is it Honda that Made IT a Hero?
The birth if the Indian two- wheeler industry started in 1950 when Automobile Products of India started manufacturing scooters. API dominated the scooter market with Bajaj Auto Ltd, a company that became a legend in the scooter industry. The motorcycle segment was no different because it was dominated by Enfirlds, which was the only motorcycle company with a four stock engine.
In India no foreign companies were allowed to enter the market, imports were controlled tightly. Customers were forced to wait 12 years to buy a scooter from such companies because of the governmental control on India. They had no incentive to implement proactive strategies to customers. In the 1980s the Indian government started permitting foreign companies to enter the Indian Market through minority joint ventures. Because of the four Indo- Japanese joint ventures helped boost motorcycles revenues. This changed the market and helped boost motorcycle revenues.
The entry of the new foreign companies transformed the essence of competition from the supply side to the demand side. The consumer was confronted with many choices and this was the influence over products that they purchased. The industry accelerated the launch of newer models, different styling, and pricing and fuel efficiency because of higher expectations. Two-wheelers had become the standard mode of transformation in many of Indians large urban centers. Because of the fact that cars were too expensive and two wheelers were much less, it was Hondas choice on entry mode.
The Hero group had made their beginning as suppliers of bicycle components. Later on they became the worlds largest bicycle manufacturer. They had the highest employee productivity and efficiency on global basis. The family was involved in day to day management of operations and setting strategic direction. The strategy of the company was anchored to the fundamental principle of proving products of value at reasonable prices to the consumer. Their belief was quality, innovation, and reliability. Throughout the years Hero Group entered multiple business areas for the transportation industry. Honda Motor Company had similar beginning; the company produces the first