Marketing & Enterprise (Hero MotoCorp Ltd.)
Hero MotoCorp Ltd’s Strategic Market Entry Plan5
Market entry strategies5
Marketing mix strategies8
A critical review Hero MotoCorp Ltd’s logistics and supply chain activities14 Conclusion17
Contemporary international business experts suggest that the success of Multinational corporations depends on the plans and strategic options put in place by managers as they pursue business in new territories. The failure to taking part in comprehensive strategic planning increases the chance of multinational corporations failing as they enter new territories. Strategic planning is crucial as it empowers managers make justified decision particularly during entry in new markets. High levels of ambiguity that accompany the decision of entering new markets can be overcome by formulating and implementing appropriate market entry, organizational structure, supply chain management and marketing mix strategies. Hero MotoCorp Ltd is a reputable organization manufacturing motorcycles that has enjoyed considerable success in various markets that include India and South Korea. The organizations ability to manufacture affordable motorcycles and motorcycle engines has enabled the organization grain ground in the global motorcycle industry. As the Indian motorcycle continues to shrink, the organization has decided to search for new business opportunities in the Chinese market. The decision to choose the Chinese market was arrived at following a careful PESTEL and Industry analysis carried out by Hero MotoCorp Ltd marketing managers. As Hero MotoCorp Ltd pursues commercial interests in the Chinese market, managers have discovered that there is need for the organization to form essential partnerships to guarantee success. Likewise, managers believe that a centralized organization structure coupled by a favorable marketing mix anchored on cost leadership supported a vast network of supply chain partners will guarantee the success of the company in the Chinese market. This report takes a Hero MotoCorp Ltd can come up with appropriate strategies to succeed in the Chinese motorcycle industry.
Bennet (2006, pp 177-193) urges international business managers to be extra careful especially when venturing into new business territories. The author believes that careful planning coupled by distinguished strategic management tools go a long way in ensuring that international business managers make informed decisions thereby guaranteeing success in the long-term. Consequently, the short-term and long-term of success of Hero MotoCorp Ltd in the Chinese and global market depends on the type of plans put in place by organizational managers. Brassington & Pettitt (2006, pp. 5-24) believe that managers must take part in strategic market planning while determining, the mode of entry, organization structure, supply chain activities and the marketing mix to ensure they make justified business decisions when entering new markets. Strong strategic and marketing plans ensure managers come up with shrewd strategic options that will see the organization succeed as it pursues its business ambitions in the Chinese market. The Chinese market is lucrative owing to its size, a favourable legal framework supporting foreign multinational corporations and its expected economic growth that makes the market a good destination for Hero MotoCorp Ltd. However, it is important for managers to know that the country is a volatile market owing to stiff competition that Hero MotoCorp Ltd is likely to face in its quest to manufacture two wheeled automobiles, emerging from rival domestic and foreign manufactures operating in...