Flooding the Indian Motorcycle Market|Business Strategy|Case Study|Case Studies

Flooding the Indian Motorcycle Market

            
 
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR026
Case Length : 10 Pages
Period : 1990s-2002
Organization : Hero Honda, TVS
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Automobile & Automotive

To download Flooding the Indian Motorcycle Market case study (Case Code: BSTR026) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here



Price:

For delivery in electronic format: Rs. 300 ;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

Business Strategy Case Studies
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Industry Wise Case Studies
Case Studies by Company

Custom Search



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

EXCERPTS

The Motorcycle Story

In the early 1980s, the motorcycle segment reported a sharp decline in growth on account of factors such as high running and maintenance costs, perception that motorcycles were more suitable for the rural roads, high price of motorcycles in comparison with scooters or mopeds and the availability of fairly new models of scooters.

With the de-licensing of the automobile sector in the mid-1980s, the motorcycle sales registered a healthy growth during the late 1980s. In 1990, due to the rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing, the industry witnessed a recession. Added to that, factors like increased production in 1992 due to the entry of new players resulted in companies either reporting losses or a fall in profits. In 1993, the recession began to ease off and the growth in the motorcycles segment began. The two-wheeler industry saw large-scale structural changes. With the launch of lighter, 100-cc motorcycles, a significant inter-segment shift began to take place and motorcycles sales began to grow...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The Future

Although the avalanche of motorcycles offered Indian consumers a wide variety of models to choose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts, technology enhancements and upgradations and styling. Their margins came under pressure as marketing costs escalated.

The companies were forced to reduce prices and offer discounts to survive the competition. Moreover, analysts were skeptical about the segment's ability to maintain the growth rate in the years to come. One of the major assumptions underlying the motorcycles rush was that if the market was considerably large and was growing at a constant pace, there was room for a profitable existence for all brands. In 2001, there were over 30 motorcycle brands in the market. However, with the top five brands accounting for more than 60% of the market, only 40% of the market was available for all other new brands put together. Despite the launch of more vehicles, the survival prospects of many of the individual brands were deemed to be rather bleak...

Exhibits

Exhibit I: Key National Income Statistics


Custom Search





Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.