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SWOT analysis

OF 2 WHEELER AUTOMOBILE INDUSTRY IN

INDIAA Seminar by

Mohan Kumar G.1st Sem., M.Tech. (M.E.M.),

S.J.C.E., Mysore.

12-01-2016

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Plan of Presentation What is SWOT analysis?

Definition

Internal & External Factors

SWOT analysis Matrix

When, How and Where to use SWOT analysis?

Limitations of SWOT analysis

SWOT analysis of "Indian Automobile Industry" as a whole

2 Wheeler Automobile Industry in India

Case Study of Hero Motocorp

SWOT analysis of 2 Wheeler Hero Motocorp

References

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What is SWOT analysis?"If you know your enemies and know yourself, you can win a hundred battles without a single loss. If you only know yourself, but not your opponent, you may win or may lose. If you know neither yourself nor your enemy, you will always endanger yourself."

- “The Art of War” by Sun Tzu, 5th Century B.C.

So, to be successful, we should know our own Strengths, Weaknesses, Opportunities & Threats. This is known as SWOT analysis.

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DefinitionA SWOT analysis, alternatively known as SWOT matrix is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business venture or in your own Personal Life.

A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are helpful and harmful to achieve that objective.

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Strengths: characteristics of the business or project that give it an advantage over others.

Weaknesses: characteristics that place the business or project at a disadvantage relative to others.

Opportunities: elements that the business or project could exploit to its advantage.

Threats: elements in the environment that could cause trouble for the business or project.

Dive in Detail

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Internal and External factorsSWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective. SWOT analysis groups key pieces of information into two main categories:

Internal factors – the strengths and weaknesses internal to the organization

External factors – the opportunities and threats presented by the environment external to the organization

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Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another objective. The factors may include all of the 4Ps (i.e., Product, Price, Place and Promotion); as well as Personnel, Finance, Manufacturing capabilities, and so on.

The external factors may include Macro economic matters, Technological change, Legislation, and Socio-economical changes, as well as changes in the marketplace or in competitive position. The results are often presented in the form of a Matrix.

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SWOT Analysis Matrix

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When to use SWOT Analysis?A SWOT analysis can be used to:

Explore new solutions to problems.Identify barriers that will limit goals/objectives.Decide on direction that will be most effective.Reveal possibilities and limitations for change.To revise plans to best navigate systems,

communities, and organizations.As a brainstorming and recording device as a

means of communication.To enhance “credibility of interpretation” to be

utilized in presentation to leaders or key supporters.

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How to use SWOT Analysis?SWOT analysis can be used effectively to build organization or personal strategy. Steps necessary to execute strategy-oriented analysis involve:

Identification of internal and external factors (using 2x2 matrix).

Selection and evaluation of the most important factors. Identification of relations existing between internal and

external features.

For instance, strong relations between strengths and opportunities can suggest good condition of the company and allow using aggressive strategy. On the other hand, strong interaction between weaknesses and threats could be analyzed as potential warning and advise for using defensive strategy.

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Preparing SWOT Analysis

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Where to use SWOT Analysis?

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) is defined.

Examples include: Non-profit organizations, Governmental units, Marketing Management, and Individuals. SWOT analysis may also be used in creating a recommendation during a viability study / feasibility study.

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A SWOT analysis, for Career Successin an individual’s Life

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Limitations of SWOT AnalysisSWOT analysis is just one method of categorization and has its own weaknesses.For example, it may tend to persuade its users to compile lists rather than to think about actual important factors in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization.

Hence, various complementary analyses to SWOT have been proposed, such as the Growth-share matrix and Porter Five Forces analysis. Heinz Weihrich introduced the TOWS Matrix, a conceptual framework that helps in finding the most efficient actions.

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SWOT Analysis of 2 Wheeler Automobile Industry in India

Segments of Indian Automobile Industry:-Two wheelers: 76.49%

Passenger Vehicle: 15.96%

Commercial Vehicle: 3.95%

Three wheelers: 3.60%

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Top Automobile Companies in India

Following is a list of leading car manufacturers in the country and some important details of the same:

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SWOT Analysis of the "Indian Automobile Industry" as a whole

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Top 2 Wheeler Automobile Companies in India

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Top 2 Wheeler Automobile Companies in India

Following is the segments and list of leading 2 Wheeler manufacturers in the country and their Market Share

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Case Study of ‘Hero Motocorp’Brief background of Hero MotoCorp

Hero Motocorp Ltd., formerly Hero Honda, is an

Indian motorcycle (<250cc) and scooter manufacturer

based in New Delhi, India.

The principal parent company ‘Hero Cycles’ was founded

in 1956 in Ludhiana, Punjab, by Munjal brothers.

Famously known as Hero Honda Motors Limited, it was

an amalgamation of Hero (an Indian company) and

Honda (a Japanese company) for 26 years from 1984 to

2010.

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Factors helping Growth of Hero MotoCorp Hero MotoCorp - Manufacturing Happiness!

Has over three decade of rich experience.Have a wide range of about 24 products across

bikes and scooter categories.Market Capitalisation as on March 31, 2015 was Rs. 52,714 Crores.Team of 7,334 employees who works efficiently

and passionately to ensure customer delight.Have a 22-country presence across four

continents.World's largest manufacturer of two-wheelers

since 2001.

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Believe it or not!Hero MotoCorp has been growing in leaps and bounds. Here's a sneak peek, of the Stock Growth of Hero MotoCorp, which itself will speak what is Hero MotoCorp.

If your parents had invested Rs. 1,000 in 1984-85 in IPO of Hero Honda, and bought 100 Shares of Rs. 10 each face value, now it would have worth a gigantic amount of around Rs. 42,00,000/- considering the Bonus shares and Split of Face value of Shares and regular dividends from the company's rapid growth. This is around 30% C.A.G.R. growth year or year!

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SWOT Analysis of ‘Hero Motocorp’

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References1. www.google.com

2. https://en.wikipedia.org/wiki/SWOT_analysis

3. https://en.wikipedia.org/wiki/Hero_MotoCorp

4. http://business.mapsofindia.com/automobile

5. http://www.heromotocorp.com/en-in/investors/annual-reports.html

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THANK YOU