Lastly, we saw the SWOT Analysis of TVS, today we will look at the SWOT analysis of Hero.
Hero Motocorp is one of the leading denominations in the automobile industry. Formerly known as Hero Honda, Hero Motocorp Ltd. is an Indian manufacturing company of two-wheeler automobiles.
The headquarters is located in New Delhi, India. Momentarily, Hero motocorp prevails over the massive works of two-wheelers around the globe. lt appreciates around 45-46% market stake in the two-wheeler section.
The major element which has contributed to the success of the company is its smart marketing tactics. Marketing is essential for the growth of any business, to know more about marketing and its digital aspect, check out Free Digital Marketing Masterclass by Karan Shah, the founder and CEO of IIDE.
In this blog, we’ll go through Hero’s strengths, weaknesses, opportunities, and threats in-depth, but before starting with the SWOT analysis of Hero, first, let’s learn a little about the company.
(Founder of Hero Dr Brijmohan Lall Munjal, Source: Hero MotoCorp)
Hero is the denomination name used by the Munjal brothers for their flagship product, Hero Cycles Ltd. A joint endeavour between the hero group and honda motor firm was ascertained in 1984 as the Hero Honda Motors Limited at Dharuhera, India.
Hero Motocorp Ltd. is the world’s largest works of two-wheeled vehicles, established in India. With-it 2001, the corporation attained the desired viewpoint of being the biggest two-wheeler generating corporation in India. Hero Motocorp Ltd. proceeds to retain this stance to date.
|Founder||Dr Brijmohan Lall Munjal|
|Origin||New Delhi, India|
|No. of Employees||8,599|
|Market Cap||Rs 53,664 Crore (2021)|
|Annual Revenue||Rs 29,614 Crore (2020)|
|Net Income/ Profit||Rs 3,633 Crore (2020)|
Products of Hero
(Hero Range of Products, Source: Google Images)
Competitors of Hero
- Bajaj Auto
- Royal Enfield
SWOT Analysis of Hero
SWOT Analysis of Hero is a process of evaluating a company’s strengths, weaknesses, opportunities, and threats. It allows you to maximize strengths, overcome weaknesses, reduce risks, and increase your chances of success. SWOT-analysis helps corporate decision-makers to develop strategic plans according to the internal and external factors of the company.
Strengths of Hero
- Enormous Brand Equity: This is one of the largest strengths of Hero Motocorp. This company is one of the largest performers in the market of two-wheelers.
- Dominant Brand Image: A corporation can barely accumulate once it is prominent by its denomination name. Hero Motocorp is one of those corporations that can play tough on the popularity area.
- Terrific Distribution: Hero Motocorp has more than 3000 dealerships and service centres which have made it the leading company in the enterprise.
- Broad Variety of Products: The extra commodities a corporation takeoff successfully, the more prominent it becomes.
- Awards and Recognition: Customers can be sure of a brand when it is conceded with prizes and awards. Hero Motocorp has obtained many in all these years.
- Sponsorship: Events associated with sports and racing provide sponsorships to the corporation that has made it hugely prominent among all its opponents.
Weaknesses of Hero
- Poor Gender Diversification: As of late 2018, Hero MotoCorp had only 256 female workers out of 8266.
- Lack of Innovation: Hero Motocorp is undergoing a lack of significant talent particularly in the field of technology and digital modification. If you also don’t want to lose on learning digital skills then soon enrol in our range of 13+ short term digital marketing courses and start upgrading your skillset.
- Customer Dissatisfaction: Even though the appetite for commodities has not gone under there is a simmer for the understanding of dissatisfaction among the customers of Hero Motocorp.
- Declining Assistance: In a study conducted by the International Journal of Innovative Research in Science, Engineering and Technology in 2015, the overall service quality for Hero MotoCorp fell below the expectations of end consumers.
Opportunities for Hero
- Development in Artificial Intelligence: Hero Motocorp can utilize growths in artificial intelligence to better indicate customer demand, cater to closet segments, and make better suggestion engines.
- Evolving Preferences of Customers: The exponential expansion meant in the population, and particularly in the existing or likely customer segments is a great growth chance for the business organisation.
- Changing Technology Landscape: The growth of new technologies to boost the product output and delivery procedure can be influenced to embed creation in business systems. The progressive technological integration can reduce costs, improve efficiency and result in the quick introduction of innovative commodities.
Threats to Hero
- Strong Competition: The increasing number of direct or indirect competitors affects the organisation’s ability to strengthen and expand the customer base.
- Development of Public Transportation: The government of India is trying to expand its public transport infrastructure. Programs such as the National Highways Development Project will add on more than 80,000 km of highways in India.
- Increasing Bargain Power of Buyers: Over the years the bargaining power of customers of Hero Motocorp has increased significantly which is putting downward prices.
- Pinching Middle Class in the Developed and Developing World: The growing imbalance is one of the biggest threats to not only globalization but also to capitalism. Hero Motocorp first-hand glimpsed the impact of it where it has seen lower demand of its products from middle-class customers in US and EU markets.
This ends our end-to-end study of the SWOT analysis of Hero. Let’s conclude our learning below.
Hero MotoCorp is one of the leading automobile industries in India. It competes against companies like Yamaha, Bajaj Auto, Honda, and TVS, etc. Therefore it must constantly innovate its products to stay ahead of the competition.
Even though Hero’s revenue has increased in recent years, it still has a long way to go. With India’s growing two and three-wheeler market, Hero should try to grab this opportunity and give its competitors a run for their money.
The company is using digital marketing effectively to get a competitive advantage. As the world goes digital, marketing is evolving and being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, which is vital. If you want to learn more and improve your skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course.
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