Documentos de Académico
Documentos de Profesional
Documentos de Cultura
• Team Details
– Abhishek Arora
• 10P003
• pg10abhishek_a@mandevian.com
– Abhishek Singh
• 10P004
• pg10abhishek_singh@mandevian.com
• Top 4 Companies:
– Hero Honda
– Bajaj Auto
– TVS Motors
– Yamaha Ltd
Customers Context
Social Trends
Market Needs
Economic Trends
Market Issues
Political / Regulatory Trends
Market Segments
Cultural Trends
Market Players and Share
Technological Trends
Company
Company Overview
Evolution Graph
Value Chain Analysis
SWOT Analysis
Business Model Framework
Time
Key Players: Market Share (Motorcycles)
•Hero Honda, the largest manufacturer in the
industry is also the largest globally.
•Some foreign players such as BMW, Harley
Davidson and Ducati have entered the Indian
market with high end motorcycles and niche
focus.
•Yamaha has increased its presence significantly in
past couple of years by aggressive new
launches and focused marketing. It is now a
significant contributor in 150cc+ motorcycle
sales of the industry
•Hero Honda maintains its dominance in the fuel
efficient 100cc motorcycle segment
0.39 0.41
0.32 0.36 0.36 0.35
0.29 0.30 0.32 0.30
1988 -90 1991-93 1994 -99 2002-03 2003-04 2004 -05 2005-06 2006 -07 2007-08 2008 -09
Threat of Substitutes
here is no perfect substitute to this industry. Though, the trend of low cost cars like TATA NANO may change the industry scenario.
LOW
o be granted to foreign equity investment up to 100% for manufacture of automobiles and components
l such that they facilitate the development of manufacturing capabilities as opposed to mere assembly.
Economic
estic policy with the international practice of imposing higher Trends
road tax on old vehicles so as to discourage their use.
Cultural
•The domestic Trends
demand for two wheeler
vehicles will be spurred by robust consumer demand backed by rising income levels, increased rural penetratio
• •Big purchases on festivals like Diwali and
•ExportsIdofand
motorcycles are
other major also on growth
festivals
track.
Emphasis on value for money
Trends
an important role in differentiation and reducing total cost of ownership for consumer, hence plays an important role
gely imported from European and Japanese manufacturers
hnology/technological up gradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is also allowed under automatic r
Market Share(Exports)
Bajaj Auto : 46 %
Total sales Volume : 84,44,243
TVS Motors : 16%
Hero Honda : 15 %
Yamaha : 10 %
Mission : Hero Honda’s mission is to strive for synergy between technology, systems and human resources,
to produce products and services that meet the quality, performance and price aspirations of its customers. At the
same time maintain the highest standards of ethics and social responsibilities
Main highlights
• Hero Honda Motors Ltd is the World's single largest two-wheeler motorcycle company
• The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's
single largest two wheeler company but also one of the most successful joint ventures worldwide
•
• In the year 1985, the company commenced their commercial production at Dharuhera plant in Haryana and introduced
their first motorcycle, CD 100 in the market.
•
• Current Models include : Passion Pro (100 cubic capacity-4 Stroke), CBZ-Extreme (150 cubic capacity - 4 Stroke),
Pleasure New Aesthetics, Splendor NXG (Self Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb) and
HUNK Special Edition. Also, they launched new motorcycle model, Karizma - ZMR
•
• Active Sponsor of sports in country, namely Cricket and Hockey
1999-2004
ched the new motorcycle model, Sleek in the market and in the year 1991, they introduced new motorcycle model, CD 100 SS in the ma
1997-97
. Year 1999,: Launch of Hero Honda CBZ, the India’s first 150cc motorcycle
Year 2001 : Launch of Passion and Joy in the market, Dawn and Ambition in the
Year 2003,: launched CD Dawn, Splendor+ and Passion Plusand ,Karizma, the
motorcycle.
Year 2004, Launched, Ambition 135 and CBZ* in the market.
Renewed the joint technical agreement with the Honda Motors Company, Japan
1985
•
as established as a joint venture company between Honda Motor Company of Japan and Hero Group. In the year 1983, they signed a jo
1
9
8
3
Support Activities
HRM: Recruiting, Training, Compensation
Marketing
Inbound Outbound
Operations and Services
Logistics Logistics
Primary Activities
Sales
m
Production
sheets,paints,parts
Setup Plan,Manufacturing,Welding,Assembling,Subassembling
,spares,machine tools, Maintain
MostlyShiiping,Transportation
Showrooms,
Inventory, Manage
Retail consumers,
shipment,
Technical
,Recall ofbrand
Testing,
Automobiles,
promotions,
RoadSpares
Testing
advertising,
etc Retailer
Collections,
Management,
Bulk Consumers(Pizza
Staff Development
Hut, Dominoe
cifications (Type & Volumes)
Opportunities Threats
Huge export potential, CD Dawn is the most popular Big uncertainty in minds of investor about drop in
brand of motorcycle in Columbia quality of technical knowhow after recent buyout
Under presence in scooter market can be improved Increased competition especially from Bajaj Auto
for higher sales eating into market share
Increased opportunity in heavy motorcycle market Increasing cost of supplies especially aluminum
reducing the profitability of company
Mission :Rapidly enhancing production ,exports and international facilities to become among the top three
largest 2 wheelers makers in the world
Main highlights
• .The company is well known for their R&D, product development, process engineering and low-cost manufacturing
skills
• The company is the largest exported of two and three-wheelers in the country with exports forming 18% of its total
sales.
• The company has two subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia
•
• Current Models include : ›Bajaj Pulsar 135 LS,Bajaj Pulsar DTSi, Bajaj Pulsar 200CC,Bajaj Avenger,Bajaj Pulsar DTS-
Fi 220 CC, Baja jDiscover DTS-Si 100cc, Bajaj Pulsar 220 S
•
•
• Operations in more than 60 countries
•The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Ba
•2007, the company inaugurated their green field plant at Pantnagar in Uttarakhand.
•Bajaj Auto International Holdings BV, a2001-2010
wholly owned subsidiary company acquired 14.51% eq
1981-90
1970-80
d two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers an
In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million ve
This decade also saw the launch of popular models like Boxer, Calibe
1
9
4
5
Support Activities
HRM: Recruiting, Training, Compensation
Technology Development: MIS capabilities, Product and Process Design, Testing, SAP, R&D,
Technology Transfer, Patent, Collaboration
Marketing
Inbound Outbound
Operations and Services
Logistics Logistics
Sales
Primary Activities
m sheets,paints,parts
Two Wheeler
Working
,spares,
Business
with
machine
Subsidaries,Exports
Unit,tools,
and Maintain
Commercial
Department
Inventory,
Vehicles
Retail consumers,
Manage
for
Business
geographies,
shipment,
Unit &Shiiping,Transportation ,Recall Retailer
of Automobiles,
Management,
SparesStaff
etc, Development
cifications (Type
International
& Volumes)
Business Unit for manufacturing, Niche
assembling
Customers,
and maintenance shops
Showrooms ,brand promotions, advertising, Collections, Bulk Consumers(Pizza Hut, Dominoes etc)
simultaneously developing product design and innovation impressive performance growing at a rate of 20%
capabilities, which is the prime reason behind the Won BBC World Wheels, Business Standard
energetic Bajaj of 21st century Motoring awards 2004 etc for Baja Pulsar
HRM The Company affirms that its competitiveness is The Company has a partnership programme with
interlinked with talent management, hence view HR as educational
Strategic role in its growth institution/s for training and development
In case of equal business offers, the Company
Technology Development Bajaj has been investing Bajaj Auto R&D also enjoys access to the
heavily in the latest, sophisticated technologies to scale specialized expertise of leading
down product development lifecycles and enhance testing international design and automobile engineering
capabilities. companies working in specific
area
Procurement Global Sourcing Team – China , a key destination for Centralized Strategic Sourcing for key
sourcing essential items like tires, power steering units etc components
transit of goods
High export to domestic sales ratio Not a global player in spite of huge volumes
High economies of scale. Not a globally recognizable brand (unlike the JV partner
High economies of scope Kawasaki
Opportunities Threats
Double-digit growth in two-wheeler market The competition catches-up any new innovation in no time.
Untapped market above 180 cc in motorcycles Threat of cheap imported motorcycles from China
More maturity and movement towards higher-end motorcycles Margins getting squeezed from both the directions (Price as well as
emerging markets
Vision : TVS Motor will be responsive to customer requirements consonant with its core competence and profitability.
TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the
right time.
Mission : TVS is committed to being a highly profitable, socially responsible, and leading manufacturer of
high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand
Main highlights
• . TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world,
with annual turnover of more than USD 1 billion i
• TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles.
Motorcycles (Apache RTR 180, Flame DS 125, Flame, TVS Jive, StaR City, Sports)
Variomatic Scooters (TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teenz)
Mopeds (TVS XL Super, TVS XL Heavy Duty)
•
• The company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh, North India and one at
Indonesia. The company has a production capacity of 2.5 million units a year.
1991-2000
1980-90
Support Activities
HRM: Total Employee Involvement ProgrammeRecruiting, Training, Compensation
Marketing
Inbound Outbound
Operations and Services
Logistics Logistics
Sales
Primary Activities
m sheets,paints,partsWorking
,spares,
with
machine
Subsidaries,Exports
tools,
Assembly
MaintainDepartment
Inventory,
Retail consumers,
Manage
for geographies,
shipment,Shiiping,Transportation ,Recall Retailer
of Automobiles,
Management,
SparesStaff
etc, Development
cifications (Type & Volumes) Forging Niche Customers,
Welding Showrooms ,brand promotions, advertising, Collections, Bulk Consumers(Pizza Hut, Dominoes etc)
Testing,
Electroplating
Chassis forming
Heat Treatment
Painting, Machining,
Road Testing
HRM Company follows Total Employee Involvement and TEI ensures sharing of responsibility across value
Technology Development Actively pursuing Research and development to Was able to launch seven models on a single day,
Inbound Logistics TVS follows following systems for efficient inbound TVS has been able to automate its process to
logistics ensure supply frequency optimization via SCM
Kanban Systems
Operations TVS uses state of art technology as well as modern Company possess prestigious certifications like
operationalpractices like JIT , Online Design ISO 9000,QS 9000 and TS16949
Collaboration, Reverse Auction Process and TPM
warehousing and value added services like line manufacturing companies like M&M and
Marketing and Sales feeding,
Riding onhigh sub-assemblies
their andeffectiveness
quality and cost SCM consultation General
TVS isa TVS sawMotors
a rise of 25 % exports in exports in past
big exporter with 25 % of its distribution from two years
SAARC countries,Africa,Argentina and Mexico
Services TVS has a good after sales service and spares network
but is much smaller than its bigger competitors
aspirational value
•Better sale service
Increasing price of supplies
•Highly competitive in export markets
Not a global player in spite of huge volumes
•It has a good brand image
Opportunities Threats
Improvise the fuel
Threat of cheap imported motorcycles from China
efficiency of offering in Scooter and Scooterette market
Make its product as competent as Honda Margins getting squeezed from both the directions (Price as well as
Cost)
Green Vehicles like electric scooty can be a big opportunity in near
Vision : To establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando" (touching their
hearts) - the first time and every time with world class products & services delivered by people having "passion for
customers".
Mission : Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA
products, focusing on serving our customer where we can build long term relationships by raising their lifestyle through
performance excellence, proactive design & innovative technology
Build the Winning Team with capabilities for success, thriving in a climate for action and delivering results
Main highlights
• . Yamaha Motors India was incorporated in August 2001 as a 100'% subsidiary of YMC, Japan
• YMI two State-of-art manufacturing plants in India i.e Faridabad and Surajpur a wide range of motorcycles that meet
International technology standards are manufactured.These cater to domesric as well as international markets.
• An agreement has recently been reached between Yamaha Motor Co., Ltd. (YMC) and its joint venture partner in
India, Escorts Limited under which YMC will acquire all of the 26% of the stock presently held by Escorts Limited
• Launched highly successful models Yamaha FZ and YZF R1
•In3780900
jpur with an area of 2008, Mitsui
sq &ft Co.,
withLtd. entered
bikes into an
Yamaha agreement
Crux with YMC to become a joint-investor in the motorcycle manuf
and RX100
•introduction of FZ-16, FZ-S, Fazer, and R15 they have made an impression on the mid range bike market in India
•
1985-1990
1
Established first plant at Faridabad in 1964 with part manufacturing capabilities
9
6
4
Support Activities
HRM: finding, screening, recruiting and training job applicants, Appraisal,as well as administering
employee-benefit programs.
Marketing
Inbound Outbound
Operations and Services
Logistics Logistics
Sales
Primary Activities
m sheets,paints,parts
Two Wheeler
Working
,spares,machine
Business
with Subsidaries,Exports
Unit,
tools,
and Maintain
Commercial
Department
Inventory,
Mostly
Vehicles
Manage
Showrooms,
for
Business
geographies,
shipment,
Unit
Retail
&Shiiping,Transportation
consumers, brand promotions,
,Recall Retailer
ofadvertising,
Automobiles,
Management,
Collections,
SparesStaff
etc,
Bulk
Development
Consumers(
cifications (Type
International
& Volumes)
Business Unit for manufacturing, assembling and maintenance shops
HRM Transparent & Team-Based Organisation Human Resources Development Division consists
Focused & Target Oriented (MBO Driven) of the Personnel Department, Employee Relation
working Department, Human Resources Development
Developing New Work-Culture (Yamaha Department, Health & Safety Department
Identity)
Technology Development Engine and FRP technology were used as a base to Access to Research and Development
actively diversify and globalize the area of business Capabilities through parent company in Japan
Procurement Vendors based in Delhi Suburban areas to reduce cost TVS has been able to connect to its 72% of its
Operations Yamaha was the early adapter of comprehensive Company meet standards like ISO 14001,QS
quality control systems and quick to put in place a 9000 and
TPM (Total Productive Management) program
Access to Japanese technology has given it competitive edge with High Dependence on Japanese counterpart for
Opportunities Threats
Recent success in >150 cc category augments more emphasis in Threat of cheap imported motorcycles from China
Increasing consumer disposable income with preference for styling may eat into market share
and quality gives a huge opportunity to Yamaha
Technology imports from Japan hampers domestic research and
No Presence in Scooters market yet which could be tapped in development process
future
Inflation may hamper the sales
* Niche products for high end customers cost products *Sports segment ,premium bikes
*World class manufacturing of almost all World class manufacturing in all * Manufacturing in different Manufacturing in different
Key Activities segment in the Indian Motorcycle segment in the Indian Motorcycle segments in India segments in India
segment segment * Assembling in international * Importing high end motorcycles
* Partnerships with sports events such * Innovative products aimed at markets which assemble CKD kits for sale in India
as Cricket and Hockey youth *Latest niche products
*Manufacturing facility at three units for Pro-Bikers
*3 plants at Waluj ,Chakan and at * Extensive R&D focus * Extensive R&D focus
Key Resources * Strong R&D from the Japanese Pant Nagar * Extensive distribution network * Qualified engineers and
counterpart Extensive R&D focus * Highly diversified business, managers *Technology support by
* Vast pool of technically competent * Huge distribution network apartf rom two-wheeler Yamaha
engineers and managers * Highly competent management manufacturing
* A JV between India's Hero Group and 14.51% equity stake in KTM * Partners in international markets * JV with mitsii
Key Partners Japan's Honda Group (to be terminated Power Sports AG of Austria to assemble CKD kits for sales * Originally a JV with Escorts
in 2014) * *International Logistics * Partners in Indian markets to
Minami-aoyama Minoto-ku for Technical Partners :Maersk Sealand, P&O boost its auto spares business
collaboration Nedloydand APL * Key *Only company of this size not
*PUC certification support Suppliers
Robust sales service not only in *having a major
Robust sales international
and service * Robust sales and service
Customer Relationships :JBM,MRFReinder,Makino
*Warranty on proprietary items handled India, and it
but most of the countries technology
network. supplier like hero
*Online network
by OEM Endurance
operates in * Online Honda
buying,maintainence scheduling *Follows 3S philosophy
*Recall capabilities developed at capabilities for service, spares available *MoU with SBI for fundamentals of -SALES SERVICE
dealership level ,test ride and financing Financial Loans and SPARE PARTS under one
roof.
* Individual customers * Mileage and cost conscious * Cost conciouscustomers *Quality focus customer *Cost
Customer Segments * Bulk customers such as pizza hut customers (100cc, 125cc) *TVSM continues to hold a focus customer *Premium
* Mileage and cost conscious customers* Style conscious customers monopoly position in the moped bikes customers
(100cc, 125cc) (150cc-200 segment) * segment with 100% market share
* Style conscious customers (150cc+ Pro Bikers(More than 200 cc) * Quality concious customers
segment)
Metrics Salesof different product segments Geographical distributonof sales Average service cost per *Ability to exceed consumer
* Average maintenance cost per year motorcycle expectations
*Different * No. of innovative features * No. of innovative features
needs for different customers compared to its rivals compared to its rivals
40
Business Model Hero Honda Bajaj Auto TVS Yamaha
Components Network of 550 dealers and 3,500 *498 dealers and over 1,500 Sales are done through the
Sales are done through the
Channels service centres * rural channel partners authorised service showroom route in India *Large showroom route in India
work on the rural vertical through the * For other countries, has presence with 3500 dealers *Relatively lower presence of
‘Har Gaon Har Aangan’ established its own sales network * Factory sales for bulk clients service stations and dealerships
Revenue Streams * Majority of revenues from fuel efficient * The company’s growth is The scooterettebusiness is an * Recent focus has shifted towards
program
100 cc segment, focusing on individual primarily driven by the domestic established one and has a strong 150cc+ segment
customers market, with sales rising by 23% brand recall *However , 68 % of *Entry level bikes such as Crux
*Hero Honda’s revenue come from motorcycles also showing good growth owing to
Profit Formula market share has improved to 45%in * Product mix *12% of the rural demsnd
entry segment bikes *Only 4.7% ofis tilting more towards premium revenues come from scooterette
revenue from spare parts with 50% market share *125 cc segment
Organization Form * A Vertical organisation structure * 20 % revenue through mopeds relatively underperforming
* Strong management team with * Innovation focussed leadership *Innovation focused leadership
involves key personnel from boh Hero top positions held by bajaj family * IndependeentResearch facilities * Functional hierarchy
and Honda * Divided intothree broad apart from vertical structure
* Functional hierarchy *Joint Managing business vericals of Executive
Director Toshiaki Nakagawa Search, Business Development *Chairman & Managing Director
Leadership Style and Expansion Driven, Hierarchal
Chairman Brijmohan Lall Munjal Hierarchal andInnovation
and Client Retention and Driven Participative and Quality
Venu Srinivasan - Driven Participative, Quality and
Attributes Managing Director & CEO Pawan Relations *Chairman Rahul Bajaj Director H Lakshmanan Consumer Oriented
Munjal Vice Chairman Madhur Bajaj Director T Kannan
Others Director Shobhanan Bhartia Managing Director Rajiv Bajaj Director C R Dua
Director (Technical) Sumihisa Fukuda Executive Director Sanjiv Bajaj
References:
• http://www.ibef.org/download/Automotives_270111.pdf
• Dept. of Heavy Industry India
http://www.dhi.nic.in/autopolicy.htm
• Society of Indian Automobile Manufacturers
http://www.siamindia.com/scripts/market-share.aspx
• EMIS Emerging Markets
http://site.securities.com/
• Federation of Automobile Dealers Associations
http://www.fadaweb.com/two_wheeler_industry.htm
http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/automobile.htm
• CMIE data base for November 2010
• World Bank Data
http://data.worldbank.org/country/india
http://india-reports.in/transitions/two-wheeler-segment-in-india/
http://www.parsoli.com/budget_highlights_parsoli.pdf