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The strategy of Hero Honda Motors was to capture the market by offering a superior product at an affordable price, with excellent customer service. (Right cost)
The strategy has been successful to date and Hero Honda Motors (India) Ltd. is the dominant market leader with over 50% of market share, ahead of closest competitors Bajaj (Kawasaki JV) and TVS-Suzuki.
Recently new challenges have come up: in 1999, Honda has set up a 100% owned subsidiary, which produces scooters, and represents a direct competitive threat.
New entrants have entered the market, offering cheap motorcycles from China.
The market is showing signs of maturing, with a reduction in business growth...
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Common topics in this essay:
- Bajaj Auto Vs Hero Honda
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