Strength:

literacy 93%
67 % above poverty line
80% live in urban area
Venezuela holds the largest reserves of oil in the Western Hemisphere
Venezuela s geographical location also gives you access to Colombia, Trinidad and
Tobago and other markets in the region.
Weakness:

Opportunities:
Venezuela has significant economic potential with the OIL and Gas sector dominat
ing the market s economy.

Threats:
Bureaucracy, price and exchange controls, corruption and lack of transparency ar
e often referred to as obstacles by the business community.

The Venezuelan market offers different ways of marketing a product commercially

speaking. TV commercials, newspapers and magazines ads and inserts are popular w
ays of advertising. Street and motorways banners are used extensively. Most rece
ntly the use of Internet is becoming more and more popular.

The Venezuelan legal framework can be described as extensive and sometimes compl
icated. A proper assessment of the legal aspect is fundamental prior to consider
ing entering the Venezuelan market. It is advisable to seek legal assistance in
order to analyse the legal aspects of doing business in Venezuela as well as the
advantages and disadvantages of the different approaches available. A suitable
law firm is in position to provide guidance on aspects such as starting up busin
ess, different types of business partnerships, taxation, exchange controls, labo
ur regulations, intellectual property, etc.
weak contract rights and government interventionism, shortages of foreign exchan
ge and a growing bureaucratic burden not least because of the introduction this ye
ar of a dual exchange-rate system.
poor macroeconomic outlook
high inflation

Venezuela has attractive advantages to attract investment. A good supply of natu

ral resources, infrastructure above Latin American standards, skilled labor, fav
orable geographical location and trade agreements allow for a market beyond our
borders.

manufacturing has the highest relative weight in the Gross Domestic Product (GDP
) and employment-generating capacity, ie a market with purchasing power.
S:
Strengths ?Ability to understand customer s needs and wants Ability to understand
customer s needs and wants ?Recognized and established brand name Recognized and e
stablished brand name ?Effective advertising capability Effective advertising ca
pability ?Its after sells service Its after sells service ?Technology
?Maintenance cost is low
?Resell value is high
?Company s name is synonymouswith fuel-efficient bikes and connectivity
Highly experienced management.
Product design and development capabilities.
Extensive R & D focus.
Widespread distribution network.
High performance products across all categories.
High export to domestic sales ratio.
Great financial support network (For financing the automobile)
High economies of scale.
High economies of scope.

Weaknesses ?R&D is not close to the Hero manufacturing R&D is not close to the H
ero manufacturing plant plant
Not a globally recognizable brand
Opportunities ?Global expansion Global expansion ?Expansion of target market (in
clude women) Expansion of target market (include women) ?Become India s leader in
the scooter market Become India s leader in the scooter market ?Financial help eas
ily available ?Relatively low rate of interest and the discount of prices offere
d by the dealers and manufacturers lead to the increasing demand for two-wheeler
vehicles ?Large market for the high performance segment which is increasing wit
h the upliftment of the lifestyle of people

Threats:
Margins getting squeezed from both the directions (Price as well as Cost)
Petrol price increases
?Pollution norms
?Aluminum and steel price increases