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Hero MotoCorp: Championing a Cause SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Hero MotoCorp: Championing a Cause


Hero MotoCorp Ltd. (HMCL) was the largest two-wheeler company in India, a country with one of the highest rates of road accidents in the world. HMCL realized that a cause marketing campaign around road safety could benefit the company in two ways-it could raise issues around road safety to benefit the greater society, and it could create a unique positioning for the company. HMCL created a multi-level campaign that created visibility and worked at the ground level to create behaviour change. HMCL's multi-level cause marketing campaign reached a large section of the population, but challenges lay ahead in measuring the success of the road safety campaign. The head of corporate social responsibility at the company had to determine how to measure the success of the campaign and whether to continue it. Utkarsh Majmudar is affiliated with Indian Institute of Management Udaipur.

Authors :: Utkarsh Majmudar, Namrata Rana

Topics :: Sales & Marketing

Tags :: Personnel policies, Social responsibility, Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Hero MotoCorp: Championing a Cause" written by Utkarsh Majmudar, Namrata Rana includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hmcl Campaign facing as an external strategic factors. Some of the topics covered in Hero MotoCorp: Championing a Cause case study are - Strategic Management Strategies, Personnel policies, Social responsibility, Strategy and Sales & Marketing.


Some of the macro environment factors that can be used to understand the Hero MotoCorp: Championing a Cause casestudy better are - – increasing energy prices, talent flight as more people leaving formal jobs, geopolitical disruptions, central banks are concerned over increasing inflation, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , etc



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Introduction to SWOT Analysis of Hero MotoCorp: Championing a Cause


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hero MotoCorp: Championing a Cause case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hmcl Campaign, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hmcl Campaign operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Hero MotoCorp: Championing a Cause can be done for the following purposes –
1. Strategic planning using facts provided in Hero MotoCorp: Championing a Cause case study
2. Improving business portfolio management of Hmcl Campaign
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hmcl Campaign




Strengths Hero MotoCorp: Championing a Cause | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hmcl Campaign in Hero MotoCorp: Championing a Cause Harvard Business Review case study are -

Successful track record of launching new products

– Hmcl Campaign has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hmcl Campaign has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Strong track record of project management

– Hmcl Campaign is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Diverse revenue streams

– Hmcl Campaign is present in almost all the verticals within the industry. This has provided firm in Hero MotoCorp: Championing a Cause case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Ability to recruit top talent

– Hmcl Campaign is one of the leading recruiters in the industry. Managers in the Hero MotoCorp: Championing a Cause are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Analytics focus

– Hmcl Campaign is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Utkarsh Majmudar, Namrata Rana can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Ability to lead change in Sales & Marketing field

– Hmcl Campaign is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Hmcl Campaign in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Highly skilled collaborators

– Hmcl Campaign has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Hero MotoCorp: Championing a Cause HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Low bargaining power of suppliers

– Suppliers of Hmcl Campaign in the sector have low bargaining power. Hero MotoCorp: Championing a Cause has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hmcl Campaign to manage not only supply disruptions but also source products at highly competitive prices.

Organizational Resilience of Hmcl Campaign

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hmcl Campaign does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

High brand equity

– Hmcl Campaign has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hmcl Campaign to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

High switching costs

– The high switching costs that Hmcl Campaign has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Learning organization

- Hmcl Campaign is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Hmcl Campaign is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hero MotoCorp: Championing a Cause Harvard Business Review case study emphasize – knowledge, initiative, and innovation.






Weaknesses Hero MotoCorp: Championing a Cause | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Hero MotoCorp: Championing a Cause are -

Interest costs

– Compare to the competition, Hmcl Campaign has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hmcl Campaign is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hero MotoCorp: Championing a Cause can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Hero MotoCorp: Championing a Cause, in the dynamic environment Hmcl Campaign has struggled to respond to the nimble upstart competition. Hmcl Campaign has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Workers concerns about automation

– As automation is fast increasing in the segment, Hmcl Campaign needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Capital Spending Reduction

– Even during the low interest decade, Hmcl Campaign has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Skills based hiring

– The stress on hiring functional specialists at Hmcl Campaign has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Hero MotoCorp: Championing a Cause, is just above the industry average. Hmcl Campaign needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Need for greater diversity

– Hmcl Campaign has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Increasing silos among functional specialists

– The organizational structure of Hmcl Campaign is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Hmcl Campaign needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hmcl Campaign to focus more on services rather than just following the product oriented approach.

No frontier risks strategy

– After analyzing the HBR case study Hero MotoCorp: Championing a Cause, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Products dominated business model

– Even though Hmcl Campaign has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Hero MotoCorp: Championing a Cause should strive to include more intangible value offerings along with its core products and services.




Opportunities Hero MotoCorp: Championing a Cause | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Hero MotoCorp: Championing a Cause are -

Low interest rates

– Even though inflation is raising its head in most developed economies, Hmcl Campaign can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Hmcl Campaign is facing challenges because of the dominance of functional experts in the organization. Hero MotoCorp: Championing a Cause case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Buying journey improvements

– Hmcl Campaign can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hero MotoCorp: Championing a Cause suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hmcl Campaign in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.

Learning at scale

– Online learning technologies has now opened space for Hmcl Campaign to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Loyalty marketing

– Hmcl Campaign has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Using analytics as competitive advantage

– Hmcl Campaign has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Hero MotoCorp: Championing a Cause - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hmcl Campaign to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

– The success of analytics program of Hmcl Campaign has opened avenues for new revenue streams for the organization in the industry. This can help Hmcl Campaign to build a more holistic ecosystem as suggested in the Hero MotoCorp: Championing a Cause case study. Hmcl Campaign can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Hmcl Campaign can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hmcl Campaign can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hmcl Campaign can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Hmcl Campaign can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Hero MotoCorp: Championing a Cause, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Developing new processes and practices

– Hmcl Campaign can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Better consumer reach

– The expansion of the 5G network will help Hmcl Campaign to increase its market reach. Hmcl Campaign will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.




Threats Hero MotoCorp: Championing a Cause External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Hero MotoCorp: Championing a Cause are -

Regulatory challenges

– Hmcl Campaign needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.

Easy access to finance

– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hmcl Campaign can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Stagnating economy with rate increase

– Hmcl Campaign can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

Increasing wage structure of Hmcl Campaign

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Hmcl Campaign.

Technology acceleration in Forth Industrial Revolution

– Hmcl Campaign has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Hmcl Campaign needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Hmcl Campaign in the Sales & Marketing sector and impact the bottomline of the organization.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Hmcl Campaign.

Shortening product life cycle

– it is one of the major threat that Hmcl Campaign is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Hmcl Campaign business can come under increasing regulations regarding data privacy, data security, etc.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Hmcl Campaign will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Hmcl Campaign can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Hero MotoCorp: Championing a Cause .

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Hmcl Campaign needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.




Weighted SWOT Analysis of Hero MotoCorp: Championing a Cause Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Hero MotoCorp: Championing a Cause needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Hero MotoCorp: Championing a Cause is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Hero MotoCorp: Championing a Cause is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Hero MotoCorp: Championing a Cause is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Hmcl Campaign needs to make to build a sustainable competitive advantage.



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