SWOT Analysis of Hero Motocorp focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors that influence the SWOT Analysis of Hero Motocorp.
Strengths are defined as the best thing every company does in its range of activities that can give it hold on its competitors. Weaknesses are used in areas in which improvement of the business or brand is necessary. Opportunities are the environmental avenues around the enterprise that can be used to increase its income. Threats are environmental factors that can adversely affect business growth.
Hero Motocorp Ltd., formerly known as Hero Honda, is an Indian manufacturer of scooters and motorbikes. The company’s headquarters are in New Delhi, India. Hero Motocorp is now the world’s biggest maker of two-wheelers. It has a 46 percent market share in the two-wheeler segment. Hero Moto Corp has recently launched Hero Electric two wheelers. These vehicles are launched due to increasing fuel prices. People are showing great interest in these electric vehicles.
Hero Moto corp a has a production capacity of 7587130 units with a operating income of US$530 million dollars and total assets of US$2.5 billion dollar.
Strength in the SWOT Analysis of Hero Motocorp – Hero Motocorp SWOT Analysis
The aspects of a businessman’s strengths that assist it to expand further and maintain its dominant position above all. Hero Motocorp’s strengths are as follows:
- Brand Equity: Hero Motocorp has a lot of brand equity, which is one of its main assets. This corporation is one of the most important companies in the two-wheeler sector. A company can only flourish if its brand name is well-known. Hero Motocorp is one of the firms that can compete on the popularity front.
- Strong Distribution Network: Hero Motocorp has more than 3000 dealerships and service facilities, making it the market leader.
- Wide Range of Products: The more products a firm successfully launches, the more popular it gets. As a result, Hero Motocrop is the market’s true hero. Hero Moto Corp has recently launched Hero Electric two wheelers. These vehicles are launched due to increasing fuel prices. People are showing great interest in these electric vehicles.
- Recognitions and Awards: When a brand is recognised with prizes and awards, customers may put their trust in it. Hero Motocorp has garnered several awards throughout the years.
- Sponsoring Events: Sports and racing events contribute sponsorships to the firm, which has made it the most popular of all its rivals.
- Superb Performance in New Markets: Hero Motocorp has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
- Mergers and Acquisition: Successful track record of integrating complimentary firms through mergers & acquisition. It has successfully integrated number of companies in the past few years to streamline its operations and to expand its footprint & business.
- Strong Brand Portfolio: Over the years Hero Motocorp has invested in building a strong brand portfolio. The SWOT analysis of Hero Motocorp just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
- Good Returns on Capital Expenditure: Hero Motocorp is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
- Skilled Workforce: Highly skilled workforce through successful training and learning programs. Hero Motocorp is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
Weaknesses in the SWOT Analysis of Hero Motocorp – Hero Motocorp SWOT Analysis
Weaknesses are areas where the company has fallen behind competitors. There are opportunities to overcome these obstacles and get back on track. Hero Motocorp’s weaknesses are as follows:
- Intense Competition: The market is crowded with national and international firms that compete fiercely with Hero Motocorp.
- Lack of Innovation: The majority of Hero Motocorp’s products have almost identical characteristics, both in terms of appearance and functionality.
- High attrition rate: Compare to other organizations in the industry Hero Motocorp has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
- New Technology: Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Hero Motocorp needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
Opportunities in the SWOT Analysis of Hero Motocorp – Hero Motocorp SWOT Analysis
Opportunities are the elements that are critical in generating money. This company’s possibilities are as follows:
- Growing Industry: As the demand for two-wheelers grows, so does the possibility for the firm to expand.
- Electric Vehicles: Electric Vehicle market is projected to increase year by year. Company must target this segment.
- Hybrid Vehicles: Demand of Hybrid vehicles are increasing year by year. This segment can also be targeted by the company.
Threats in the SWOT Analysis of Hero Motocorp – Hero Motocorp SWOT Analysis
Threats are the areas in which the firm lags behind its rivals. The following are the areas:
- Intense Competition: There are several other firms that are fast rising and pose a significant threat to the company.
- Alternative Transportation: As alternative forms of transportation have grown in popularity; the usage of two-wheelers has declined.
- Government Regulations: Government regulations can also affect the production and sales of the company.
- New Entrants: New Entrants can also be a major threat.
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