The Hero Group
Hero is an Indian company making motorcycles and mopeds. They were able to understand the importance of operating internationally when other Indian company focused on domestic production. Hero was able to grow in the international market by understanding just in time or JIT, dealer networks with strategic alliances, employee policy. In each of these areas, Hero has created strategic alliances helping the company grow internationally.
Hero was one of the first cycle companies to utilize just-in-time inventory. By using JIT Hero was able to reduce inventory costs and boaster operational efficiency. This method reduces the amount of inventory on the floor and creates and environment that produces products at the end of the day that are ready to be shipped off. With less clutter on the floor employees are able to see what product they have and what they need to have shipped in for the next day. Dealer networks are also very important factors in the success of Hero. Hero is a family company and has created a unique close to its dealer it operates with. Sales agents from Hero maintain in constant communication with each of it dealership around the world. The Hero Employees’ are also a key factor in the core concept of how Hero has been able to create a solid company. The employees are not involved in unions. The Hero Company encourages its employee to grow with the company. Since the company is owned by a family the idea that the employees are a part of the family helps in creating a united coalition towards growing the Hero Company. Hero provides allowance for rent, travel, and medical check -ups. This is a big benefit for employee and thus has created a loyal work force. This has also been the case in the creation of strategic alliances around the world. Hero has three different types of strategic alliances and the three are technology related partnerships, IT related alliances, and product engineering. Hero has alliances with many well...
Please join StudyMode to read the full document