Hero MotoCorp is among the trailblazers in the two-wheeler industry. In this blog, we will see the SWOT analysis of Hero MotoCorp in detail.
About Hero MotoCorp
Hero MotoCorp is among the world’s biggest two-wheeler vehicle manufacturers having headquarters in India. The company was founded in 1984 in New Delhi, India. It is a joint partnership between The Hero Group and Honda Motors.
Hero MotoCorp at a Glance
| Founder | Brijmohan Lall Munjal |
| Key People | Pawan Munjal – Chairman |
| Year of Establishment | 19 January 1984 |
| Annual Revenue (as of FY24) | US$4.6 billion |
| Net Income (as of FY24) | US$450 million |
| Total Assets (as of FY24) | US$3.1 billion |
| Origin | Noida, India |
| Total no. of employees | Approx. 33,966 |
SWOT Analysis of Hero MotoCorp
The SWOT analysis of Hero Motocorp is the method of analyzing the company’s weaknesses, opportunities, strengths, and threats. It also helps the decision makers of the company to create strategic plans as per the internal and external factors.
Strengths of Hero MotoCorp
Hero MotoCorp’s strengths lie in –
1. Huge brand equity
It is one of the biggest strengths of Hero MotoCorp as it is one of the biggest performers in the two-wheeler market in India. The company plays a major role when it comes to the most popular two-wheeler manufacturer in the industry.
2. Extensive distribution
The company has approximately 3500 dealerships as well as service centers that have made it the leading manufacturer in the industry. Moreover, the company has extra commodities to take off which makes it more prominent.
3. Sponsorships and recognition
Hero MotoCorp has been recognized by the top awards as well as prices obtained throughout the journey. Moreover, the company offers sponsorships to all the sports and racing events that make it unique among its competitors.
Weaknesses of Hero MotoCorp
The major weaknesses of the company include –
1. Unstable gender diversification
As per to latest reports Hero Motocorp only has approximately 250 female workers and the rest that is approximately 8000 male workers.
2. Lack of uniqueness
Hero Motocorp is experiencing a shortage of talent specifically in the technical and digital modification segments. This is the top weakness of the company which calls for consistent innovation.
3. Unsatisfied customers
Hero MotoCorp faces unsatisfied customers on which the company should focus more. Moreover, the overall service quality of the company is falling below the expectations of customers which is a major concern.
Opportunities to Hero MotoCorp
The main opportunities for Hero Motocorp involve –
1. Increasing usage of artificial intelligence
Hero MotoCorp can make the best use of artificial intelligence that indicates customer demands and can also serve closet segments. Artificial intelligence can also make advanced suggestion engines which will prove beneficial for the automotive industry.
2. Changing customer preferences
The huge expansion in the population as well as particularly in the existing customer sectors is a big chance for the company to grow in the long run.
3. Tech-upgradation
The development of new technology is the capacity to boost the final product, as well as the delivery process, can be influenced to bring creativity to the business systems. Consistent technological integration can also reduce costs while improving efficiency.
Threats to Hero Motocorp
Here are the major threats the company confronts-
1. Severe competition
Today, the number of direct as well as indirect competitors affects the company’s ability to strengthen and expand the customer base to a greater extent. The company should be able to cope with the severe competition in the automotive industry to stand tall among the rest.
2. Improvement in public transportation
The Indian Government is trying to improve its public transport infrastructure including the National Highways Development Project. These government programs will result in reduced usage of personal vehicles which is a major threat to the company.
3. Imbalance in the developed and developing countries
The increasing imbalance across the board is a major threat to globalization and the capitalist nature of the company. The company is experiencing the effect of the imbalance that it is experiencing in reducing the demand for its products from middle-class people.
Top Competitors of Hero Motocorp
Here are the top 5 competitors of Hero Motocorp –
1. Bajaj Auto
It is a top player in the two-wheeler industry and is popular for its Platina and Pulsar series.
2. TVS Motors Company
It is a major competitor of Hero MotoCorp with its Jupiter and Apache models.
The company offers premium as well as classic cruiser bikes. It is also a top competitor of Hero Motocorp.
4. Suzuki Motorcycle India
It is popular for its stylish and highly performance-oriented motorcycles.
5. Yamaha Motors
The company offers a broad range of performance-focused and security bikes that are popular among young riders.
Conclusion
The SWOT analysis of Hero MotoCorp we can understand the strategic position of the company in the two-wheeler industry. The company has a very strong presence, an extensive distribution network, and many other key strengths. The company has a heavy reliance on the market in India and a very limited international presence that needs high concentration. The company is a dominant element in the two-wheeler automotive industry looking for consistent growth innovation in the coming years. The company should capitalize on the opportunities and strengths while also addressing threats as well as weaknesses.