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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.
The company's response is a defend and fortify strategy: Hero has renewed the technology JV with Honda, and have widened their offering a wider share of products...
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Common topics in this essay:
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