View
222
Download
0
Category
Preview:
Citation preview
8/14/2019 Managmen Perspective on hero honda and bajaj Report
1/18
MAN AGEM ENT PER SP EC TIV ES
2 T WO W HEELER GIA NTS IN I ND IA
GROUP- 7
COU RSE FACILITATOR - GROUPMEMBERS D im pl e Gr ove r
KRI T KR .V ERMA (0 86 09 052 )
AMIT KUMAR ( 08 60 905 3)
ROHI T JAI N
(08609054)RA CHY JAIN
(08609056)
AD IT YA AST HANA
(08609057)
8/14/2019 Managmen Perspective on hero honda and bajaj Report
2/18
8/14/2019 Managmen Perspective on hero honda and bajaj Report
3/18
BAJAJ STRATEGI C P LAN NI NG
INTR ODU CTION-
BAJAJ AUTO Ltd is one of the oldest and largestmanufacturers of automobiles in India and has beenthe market leader in scooters. It is the flagship of theBAJAJ group of companies .BAJAJ is currently Indiaslargest two and three wheeler manufacturer and one of the biggest in the world.
TURNOVER-
72 MILLION (1968) --------------- 81.06 (BILLION)
CURRENT PERFORMANCE-
32% growth in 2004-05 US industry growth of 19%
Increase from 28% to 31% in year 2005-06 inmotorcycle segment
Annual turnover is of Rs.81.06
It is present in all those segment
PRICE SEGMENT
8/14/2019 Managmen Perspective on hero honda and bajaj Report
4/18
VALUE SEGMENT
PERFORMANCE SEGMENT
Selling more than 1.20 lakh motorcycle annually
COMPARATIVE ANALYSIS OF BAJAJ ON BASISOF TOWS MATRIX
SO (Maxi-Maxi)-
With the upper hand in high performance segment
with several variants BAJAJ can perform very well inthe market of high ended motorcycle i.e.(150 cc)
BAJAJ is pioneer in launching new technology of DTSi which stands for digital twin spark ignitionwhich delivers more power and efficiency whichcan be very helpful in delivering the demand of
technology based bikes.With the concept of free riding it can easily attractthe young generation.
Can use the existing R&D capabilities for newmodels and new segment.
The company is sitting on cash pool and can easilyproduce the battery operated two wheelers with
8/14/2019 Managmen Perspective on hero honda and bajaj Report
5/18
higher efficiency for which the demand is expectedto be very high in future.
Can use its Kawasaki distribution network tocapture the world market.
WO(Mini-Maxi)-
Must employ the cash in production and productcapabilities to match competitors and forcontinuous export growth.
Must hire the brand ambassador with higher facevalue to attract customer because there is higherdemand of a product if celebrity advertise for it.
Engage itself in the production of heavy andmore high ended bikes to overcome theweakness in the world market segment and had
a opportunity of capturing the market segmentMaintain and deliver the quality service to itscustomer for capturing the market in terms of quality product service and service provider.
ST(Maxi-Mini)-
Can use its excellent R&D department to catchup with the new innovation & technologicalchange
Due to its already established customer base itcan easily remove the threat of customerdisloyalty
Can also use its various wings i.e; BAJAJ FINANCEand BAJAJ INSURANCE
8/14/2019 Managmen Perspective on hero honda and bajaj Report
6/18
Provides high performance product across allcategories all categories that will build image of the company
WT(Mini-Mini)-
Invest in building world class bikes to sustain theinternational market
Tie up with different companies in foreign toexport there production.
BAJAJS PORTER ANALYSISRIVALRY-
8/14/2019 Managmen Perspective on hero honda and bajaj Report
7/18
BAJAJ has a competitive advantage over its competitorin following respects;
Own R & D facilities
Low maintenance cost
Innovative design
Large product lines
High performance bikes
Advantage of self owned finance and insurancecompany.
THREATS OF SUBSTITUTES -
Bajaj Pulsar 225 DTSFi has a threat as itscompetitor Hero Honda will decrease the price of Karizma
Lowering cost of second hand cars.
Substitute of every model is available in one orother company.
BUYERS POWER
As bajaj auto is a major player in market and itproduces different range of products withinnovative features which is very well demandedby the buyers.
Individual buyer cannot affect the price of thecompany so they are less powerful
This can be shown by the fact that thesale of bike pulsar has grown to 40000 vehicle per
8/14/2019 Managmen Perspective on hero honda and bajaj Report
8/18
month and increase of 24% over last year despite of high cost.
SUPPLIER POWER-
Manufacturing of bikes need various kind of spare partsand this spares parts are supplied to bajaj by varioussuppliers ie;-
MINDA- ignition locks,fuel tank locks etc.
LUMAX- head light,tail light,indicators etc.
EXIDE- battery
DEE OVERSEAS- clutch plates,gasket,air filters etc.
As these suppliers are very renowned and they havethe power to affect market supply and BAJAJ cannoteasily switch to other suppliers because they use thesecompanies spare parts in various range of products.
THREATS OF ENTRY-
If BAJAJ want to enter other segment of market thenthese are the barriers-
Bajaj entering in car market is a high barrier entryas already there are so many competitors in themarket.
Patent on proprietary knowhow is necessary forbajaj in order to prevent the products from beingcopied.
8/14/2019 Managmen Perspective on hero honda and bajaj Report
9/18
Bajaj scooters entry is low as the business isindependent and now scooters are being lesspreferred by gents.
BCG MAP FOR BAJAJ
PULSAR 220 DTSFi IS STAR DISCOVER 135 ISQUESTION MARK
PULSAR 150 IS CASH COW
WAVE DTSi IS LIKE DOGS
8/14/2019 Managmen Perspective on hero honda and bajaj Report
10/18
HERO HONDAINTRODUCTION -
HERO HONDA MOTORS ltd. Established in 1984 is in a joint venture between Hero group, the worlds largestbicycle manufacturers and the Honda motor companyof Japan. Hero Honda manufactures a range of motorcycle like CD Dawn, Splendor, Passion, CBZ,Karizma etc.Its splendour bike is one of the largestselling bikes in the country. Its world largest twowheeler manufacturer in the world.
8/14/2019 Managmen Perspective on hero honda and bajaj Report
11/18
CURRENT SCENARIO-
Hero Honda produces largest number of twowheelers in India
Sales of 314567 two wheeler in September
Consolidated over 50% share in the domesticmotorcycle market
Crossed half a million retail sales in the festiveseason.
THE TOWS MATRIX FOR STRATEGY FORMULATION
SO(Maxi-Maxi)-
Regular production of good quality two wheeler
with efficient & skilled worker producing 13000motorcycle a day approximately it can cover thehuge demand from the market.
High performance in the festival season.
Without increasing its cost it can supply largemotorcycle to curtail the opportunity of transportand mobility since public transport is not efficient.
Large coverage in tier2 &tier3 cities where thedemand for two wheeler is increasing.
Positive image of the company can help it toincrease its sales in rural areas due to the growthof road network in rural area by intiative of government.
8/14/2019 Managmen Perspective on hero honda and bajaj Report
12/18
8/14/2019 Managmen Perspective on hero honda and bajaj Report
13/18
WT(Mini-Mini)-
Take away the products from the market for whichthere is very less sale.
Came in joint venture with the foreign company fornew innovation
Joint venture partner Honda motors Japan,forbringing in the next generation engines, whichinclude fuel injection and other features into India.
PORTERS ANALYSIS
RIAVALRY-
Hero Honda has competitive advantage over itscompetitor Bajaj in following are as follows;
Huge customer base
High sale i n tier1 and tier2 cities and also in ruralareas.
Large distribution network
Technical knowledge to the mechanics.
Large service centre across whole country
Stable prices
Resale value of Hero Honda Bike is more thanBajaj.
8/14/2019 Managmen Perspective on hero honda and bajaj Report
14/18
THREATS OF SUBSTITUTES -Hero Honda face threatof substitute in many segment.
Splendor with Discover
Pulsar 220 DTSFi with Karizma
Pleasure with Scooty pep
Substitute of high ended bikes like Avenger
Lowering price of second hand cars-The car price
is low which gives the switching power tobuyers.Due to availability of substitute demand ismore elastic.
BUYERS POWER -
Buyers are less powerful because Hero Honda hasits own distribution channel.
Buyers are fragmented in the market so noparticular group of buyer had a significance onsale of motorcycle or its price so buyer are lesspowerful.
SUPPLIER POWER -
Rolex IPEX Company provides the engine,suspension, brakes etc for hero Honda.
Saicom International provide electrical parts, headlight, tail lights, switches.
In case of Hero Honda its suppliershave the power to bargain because in all theproduct line the same spare part is used by thecompany so it cannot early switch it. But the
8/14/2019 Managmen Perspective on hero honda and bajaj Report
15/18
supplier maintains relationship with the companybecause they regularly receive the order from thecompany in bulk.
BARRIER TO ENTRY AND EXIT -
If Hero Honda wants to enter into other segmentmarket ie; producing scooters, cars, three wheelersetc.
It has to take patent or proprietary knowhow.
It has to explore new distribution channels.Product would be successful or not
Switching to other segment will affect the industryor not.
It is not easy to exit two wheeler segments becauseHero Honda has not set up many specialised plantsetc.
Very high exit cost from industry.
BOSTON CONSULTING GROUP MAP FOR HEROHONDA
KARIZMA IS STAR
HUNK IS QUESTION MARK
SPLENDOR IS CASH COW ACHIEVER IS DOGS
BOSTON CONSULTING GROUP (BCG) MAP
8/14/2019 Managmen Perspective on hero honda and bajaj Report
16/18
The business portfolio matrix was developed byBoston consulting group (BCG).The map shows thelink between the growth rate of business and the
market share. Question marks in business are withweak market share and high growth rate; usuallyrequire cash investment so that they can becomestars. The businesses with high growth and strongcompetitive position. These kinds of businesses haveopportunities for growth and profit. The cash cows,with a strong competitive position and low growth
rate, are usually well established in the market andsuch enterprises are in the position of making theirproducts at low cost. The dogs are the businesseswith a low growth rate and a weak market share.
These businesses are usually not profitable andgenerally should be disposed of.
TOWS MATRIX-
The tows matrix was developed for analysing thecompetitive situation of the company or even of anation. The tows matrix is a conceptual frameworkfor a systematic analysis that facilitates matching theexternal threats and opportunities
with the internal weaknesses and strengths of theorganisation. The word tows comprises of T standsfor threat, O stands for opportunities,W standsfor weakness & S stands for strength.
INTERPRETATION
8/14/2019 Managmen Perspective on hero honda and bajaj Report
17/18
From the above analysis we can say that Bajaj twowheelers will capture the martek share of Hero Hondaalso incoming years and will perform extreamly well
in the industry because of the following facts:1. It has its own R & D facilities.
2. It varies its bike from time to time .
3. Bajaj bike produce statement on road.
4. Bajaj has opportunities of providing extra
services to its customers by using its finance andinsurance company.
5. It can easily target the young age group moreefficiently due to its design and technology.
LIMITATIONS
1. Difficulty in finding the numeric data.
2. Difficulty in finding the recent knowledge about thecompany.
3. Difficulty in adjusting the material into the limitednumber of slides.
8/14/2019 Managmen Perspective on hero honda and bajaj Report
18/18
REFERENCES
Tekemeong.com
Bajaj.com
HeroHonda.com
Essential of Management by Koontz& Weihrich.
Managementparadize.com
Equitymaster.com
Davegelber.com Coolavenues.com
Recommended