Organisational Analysis

of Hero MotoCorp and

Eicher Motors
GROUP 9
Aditya Jain- M005-21
Aishwarya Roy- M006-21
Ayush Kumar- M017-21
Harshit Vats- M033-21
Jante Sudhir Devidas- M035-21
Kothari Kartik Sandeep- M044-21
Kumodini Brahma- M047-21
Mallam Ravikanth- M050-21
Rupanshi Jaiswal- M073-21
Raja G– M066-21
 STRUCTURE
Hero Eicher
Hero MotoCorp MotoCorp Motors Eicher
Vision Dr. Pawan Munjal(CEO) Siddhartha Lal(MD & CEO) Vision
Board of
Mr. Pradeep Dinodia(Non-Exec. Director) S. Sandilya(Chairman, EML)
directors
To be recognized Mr. Suman Kant Munjal(Non-Exec. Director Manvi Sinha(Independent Director, EML)
as the industry
leader driving Be the
Dr. Pawan Munjal President Siddhartha Lal
modernization in
commercial
future of
transportation in mobility
India and the Anil Gauba, Avnesh Jain General Rajesh Jain, S Parameshwaran
developing world manager

ISO centre Chief engineer

MISSION MISSION
Finance Manager
Reducing logistics Manager
manager Create
costs for goods and
• Redefine mobility
people – leading to
higher enablement of • Set best practice and
Engineeri Finance Purcha Business
specialization in Production Quality HR Ware Head sing
benchmark
ng dept dept dept dept dept house quarters dept
manufacturing, dept Collaborate
agriculture and • Leverage partnerships and
ISO document
services, thereby control centre exhibit teamwork.
increasing the nation's • Co-create solutions that
economic activity and benefit the community
productivity.
Tooling Stamping Die-casting Winding motor Painting Parts Final
workshop workshop workshop workshop workshop assembly assembly
 Life cycle stage
Hero Moto Corp Eicher
Hero Moto Corp is in the Elaboration Stage since it is a large Large size, multiple product/service lines – 4899 employees (as
organization with bureaucracy, reputation, institutionalized of Mar 2020), multiple products: Royal Enfield motorcycles,
R&D department, and multiple product and service lines. Hero Light/Medium/Heavy-duty trucks, Buses, Construction and
MotoCorp has a size organizational size of more than 9000 Mining vehicles, Automotive components, Engines for power
employees. Hero MotoCorp has multiple product or service generation, and a vast service network covering 310+
lines encompassing 21+ scooters and bikes. They also offer dealerships and 2800+ retailers.
services like spare parts, accessories etc.

Bureaucratic means of control is used, with extensive rules Very bureaucratic (extensive rules and procedures): Eicher has
under code of conduct, code of practices, environment policy, in place a Code of Conduct, Policies regarding Human Rights,
risk management policy etc. for various departments. Information security, Board diversity, Supplier conduct,
Remuneration, Archival, Whistle blowing, Tax strategy, CSR,
Redressal of sexual harassment, and Dividend distribution.
Hero MotoCorp has its own R&D department for scooters and Innovation institutionalized through R&D dept. – Bengaluru
bikes in Jaipur and Germany, hence innovation is based R&D center to design platforms for heavy duty trucks
institutionalized.
Stature and reputation are important for Hero MotoCorp. This Stature and reputation are important: The firm maintains its
can be seen through an ongoing legal case, wherein the reputation by investing into the GoodEarth Education
organization wanted to use Hero electric’s name under its own foundation, and Eicher Schools in Alwar, Parwanoo and
organization to seem like they invested in green vehicles. Faridabad

2
 Inter-Organisation Relationships
Hero MotoCorp:
Generalist known for fuel economy and
Hero MotoCorp: wide variety of low cost two wheelers, front
Hero MotoCorp and Gilera Motors Argentina runner for Electric Mobility
The project Green Leaf with IBM Eicher Motors:
Eicher Motors: Experiential brand, Royal Enfield with its
Enfield India, Ramon and Demm, Govt. of motorcycle combines modern-day elements
Tamil Nadu, Harris Performance with the brand’s heritage and garners
Resource Population immense enthusiasm amongst global
Dependence Ecology motorcyclists

Hero MotoCorp: Collaborative Institutionalism Hero MotoCorp:

Joint venture with Gogoro to Accelerate the Network Association with Ather Energy, to focus
shift to electric transportation in India on shift towards green energy
Partnership with Erik Buell racing. Eicher Motors:
Eicher Motors: Transitioned to BS VI emission norms,
Joint venture with Sweden’s Volvo and Polaris has three major initiatives that serve
industries from the US. Partnerships with society, Indias 2nd most engaging brand
Corbeta group and PT Distributors to expand after Netflix, and has pledged 50 crores
into Colombia and Indonesia. for COVID relief

3
 Hero MotoCorp is focusing on Global Business currently and
follows R4 Strategy:
Strategy Eicher has adopted the Strategy:
Introduction of small-format stores to expand its distributor footprint
Revitalize Recalibrate Revive Revolutionize

The company intends to target under-penetrated states where its

brand has a lower market share than the national average.
Investing in new products for international markets and
are determined to expand their global footprint.
Increasing the store count from approximately 1,100 to 1,350 by FY20.
and increasing dealer profitability by increasing spare and accessory
sales.
Goal is to create new markets and increase market share
in existing ones by providing superior products and
enhanced customer experiences.
The international business team devised Key City Strategy:
Strategic development programmes in cities with the greatest potential for
middleweight motorcycles
In Bangladesh, Nepal, and Latin America, the company
intends to strengthen its focus on the premium
motorcycles and scooters segment. Customization and design events in the UK and Asia Pacific to increase
brand exposure and awareness

Collaboration Influencers During lockdown in

In Africa, it is revamping its product portfolio, expanding The launch of
with Bike in Thailand, Europe, the Royal
its network, and establishing its brand presence. exclusive custom kits
Shed in Indonesia Enfield custom
for Himalayan and
London and and team conducted
650 Twins by custom
launch of Australia brand building
houses in Asia-
Bolt-On-Build resulted in exercise and
Pacific strengthened
project to unique and storytelling
Result of strategy- FY21 ended with the highest-ever monthly Royal Enfield’s
engage with creative through weekly
customisation
exports. prominent custom series of ‘Custom
Despite the impact of Covid-19, the company exported 1,91,609 capabilities
customers. projects. World Live’
units in FY21, a 7.5 percent increase over FY20.
 Competitive Position
Hero MotoCorp operates in a capital-intensive industry- Net Worth Net Worth
Current
achieving market dominance via economies of scale,   ’19, Pre ’21 Post Eicher has 915+ dealers worldwide and 42+
Market Cap
innovation, and distribution. Therefore, has a wide Covid(Cr) Covid (Cr) exclusive Royal Enfield stores outside of
economic moat. 671.50B IN India.
Eicher 7126 9705
R
Hero
492.65B IN
Operates seven globally benchmarked manufacturing MotoCor 12857.12 15198.43
R In India, market share of more than 90% in
facilities, five of which are in India and one each in p
Colombia and Bangladesh. the Mid-Size motorcycle segment and sells
nearly 8.2 lakh motorcycles per year under
the Royal Enfield brand.
The current capacity is 9+ million units, and once the 8th
plant in Andhra Pradesh is operational, the capacity will
increase to 11+ million units.
Highest EBITDA margin in the industry, at
EICHER 30.1 percent. This demonstrates the
company's pricing power and brand
Separation from the Honda-led joint venture= premiumization.
establishment of own R&D and technology centres.

The Center of Innovation and Technology (CIT) in Jaipur

HERO In India, the Volvo Eicher JV has a 30 percent
serves as Hero's global R&D hub. MOTOCORP  or higher market share in the commercial ve
hicle segment.

One of the most extensive distribution networks in the

industry, with over 9000 customer touchpoints worldwide,
including over 6500 in India.
Due to its sheer size and
market dominance, it has a wide economic
moat.
A strong presence in the rural market throughout India.
5
 Similarities and Differences with
Rationale
Similarities: Both companies have a strategy of
expanding into global markets by having a wide
While both Eicher and Hero MotoCorp have similar product lineup, constant innovation, and reliable
vision, Hero MotoCorp’s mission is more stakeholder aftersales service.
oriented along with a sustainability bent. Eicher’s Differences: Hero MotoCorp invests in the development
mission on the other hand is geared more towards of new products for international markets while Eicher
improving efficiency/productivity thereby increasing wants to target under-penetrated stores where their
economic output.  brand has lesser market share compared to national
average. Hero MotoCorp wants to expand their
Vision Strategy motorcycles in the premium segment while Eicher is
more focused on middleweight motorcycles.

Competitive Structure
position
Both companies are in a similar position when it Both companies have a divisional
comes to expansion into global markets, investment departmental grouping. The divisions are
into R&D, and economies of scale. However, what also geographically divided.
makes Hero MotoCorp different from Eicher is its Geographic:
much larger distribution network, stronger rural Hero MotoCorp is spread across India, Bangladesh,
presence. This is reflected in the difference in net Nepal and Latin America and African markets.
worth, both pre and post COVID. Eicher is spread across India, UK and Asia Pacific