(8 pages of text)
Case (Pub Mat)
After a 26 year partnership in the Indian two-wheeler industry, Hero and Honda parted ways. Honda had now become one of Hero’s main competitors. The case covers the reasons for the split, the challenges faced by Hero and the strategic initiatives it had to use to overcome these challenges. After the split, rebranding and re-positioning itself as a stand-alone brand was of primary importance to Hero MotoCorp. To ensure that Hero MotoCorp continued its association with the Indian consumers, it underwent a series of transition phases. With ever rising competition, Hero was putting all of its efforts into ensuring that it overcame each roadblock and maintained its number one position in the Indian two-wheeler market, but were the strategies producing results?
This case can be used for a module on corporate strategy, especially for discussing joint ventures, as it illustrates reasons for the formation as well as the split of a joint venture, even after a very successful run. The case illustrates the various re-branding strategies that a company undertakes in order to keep the confidence of the key stakeholders in the new brand intact after the split. When any joint venture splits, there are several key issues that the new separate entities need to look into. Their performance in terms of profits, market share and share prices may suffer in the initial phases of separation. The case can be used to analyze how a company needs to identify its new goals and undertake initiatives to achieve them.
India, Large, 2013
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