Business Strategy Analysis – Hindustan Motors

Presented By,
Tejaswi Monangi,
1807010,
PGPEX - VLFM
 Mission & Vision

Hindustan Motors is committed to

core values of quality, safety,
environmental care and holistic
customer orientation.
 Impact Matrix Analysis
Hindustan Motors - Maruti Udyog Limited –
Sl. No Key Macro Influencer
Ambassador Maruti 800

• Sturdy and Safe Build (++) • Aesthetic Designs (++)

1 Design & Technology
• Low Fuel Efficiency (- -) • Better Fuel Efficiency (++)

2 Brand Image High (++) High (++)

Service Centers &

3 Good (+) Very Good (++)
Distribution Network

Government Support &

4 High (++) High (+)
Patronage

5 Foreign Collaborations Multiple Companies (++) Suzuki (+)

6 Employee Motivation Low (- -) High (++)
Total Score 5 12
 Porter's 5 Force Analysis
Threat of New Entrants(L)
Huge Capital Costs
Involved in Setting up
Production Systems

Industry Bargaining Power of

Bargaining Power of Competition(H) Customers(H)
Suppliers(M) Maruti, Tata, Hyundai, Increased due to
Increased due to Honda, Toyota, Gen. increased purchasing
alternative players Motors, Volkswagen, power and Finance
Ford options

Threat of Substitutes(H)
Advent of New Entrants
with Fuel Efficient Models
and Aesthetic Designs
 Core Assets Vs Core Activities
• Manufacturing
Units are shutting
Threatened down one by one.
Core Assets
• Market share
• Networks with Foreign Creative Radical
Companies. dropped from 75%
Change Change
• Production Facilities. to less than 3%
• Brand Image
Core Assets
Core Activities
• Manufacturing of
automobiles.
• Manufacture of Trucks
and Earth Moving
Equipment. Progressive Intermediating
• Manufacturing of Change Change
components & Spares.
Not
Threatened

Not Threatened
Core Activities
Threatened
 Strategic Group Analysis
Broad Honda, Hyundai,
Toyota, Volkswagen,
Ford, General Motors
Product Range
Tata Motors,
Mahindra & BMW, Subaru, Suzuki,
Mahindra Isuzu

Hindustan Motors, JLR, Rolls Royce,

Maruti Suzuki Mercedes
Narrow

National Geographical Scope Global

 Capability Analysis
Production
Capability
System & Safety & Competence
Distribution Durability
network

Networks Brand
with Image as Core
Resource Foreign Iconic Competence
Companies Indian Car
 VRIN Analysis
Resource/ Non Competitive Performance
Valuable Rare Inimitable
Capability Substitutable Consequence Indicator

Networks with Unused Above

Foreign Yes Yes Yes No Competitive Average
Manufacturers Advantage Returns
Temporary Above
Brand Image Yes Yes No No Competitive Average
Advantage Returns

Safe & Sturdy Competitive

Yes No No No Average Return
Designs Parity

Production
Competitive
Capability & Yes No No No Average Return
Parity
Distribution
 Relative Appraisal
Sl. No Resource/ Capability Industry Standard Hindustan Motors
R: Resources
R1 Brand Image 6 8
Networks with Foreign
R2 4 8
Companies
R3 Research & Development 7 3

R4 Production System 8 4
C: Capabilities
C1 Employee Motivation 9 4
C2 Distribution Network 8 7

C3 Marketing & Sales 7 4

New Product
C4 8 4
Development
 Relative Appraisal
10 Superfluous Key
Strengths Strengths
R2 R1 C2

Relative Strength

C3 R4 C1
C4
R3

Zone of Key
1
Irrelevance Weakness

1 Relative Importance 10
 Products & Capabilities With Time
Ambassador Opel Astra,
Opel Corsa –
Hindustan 10 General Motors Commenced Launched
Based on Launched Contract Outlander in Joint
Morris 10 Mitsubishi Manufacturing of Venture with
Pajero Isuzu’s SUVs & Pick Mitsubishi Entering
Up Trucks Premium Segment
Isuzu F series Trucks

1948 1954 1958 1959 1982 1984 1994 1998 2002 2013 2016 2018

Commenced
Hindustan Earth Mitsubishi Launched
Tractors Moving Lancer Project Mitsubishi
Equipment Pajero Sport
Hindustan 14 Division -
Baby Terex
Hindustan
Started
Contessa with
Izusu
 Hindustan Motors - Mile Stones
Established
Earth Modernization of
Moving EED, PPD, Uttarpara Launched Pajero in
Equipment Plant Collaboration with Stopped Production
Started as
Assembly Division – Mitsubishi, Japan. of Ambassador
Plant for Tiruvallur, TN
Passenger Commenced Launched
Cars – Okha, Commenced Contract Outlander in Joint
Commercial Mitsubishi Lancer Manufacturing of
Gujarat Venture with
Vehicle Division Project Isuzu’s SUVs & Pick Mitsubishi Entering
Establishment & Sell Up Trucks Premium Segment
off to Gen. Motors

1942 1948 1971 1985 1986 1987 1996 1997 1998 2001 2002 2004 2013 2014 2014 2017 2018

Production Transferred Sold

Power Production of of Road Pithampur & Ambassador
products Petrol Engines Trusted Hosur divisions brand to PSA
division for & Vehicles to AVTEC Group
Set Up Facility transmission of Transmissions
for earth moving – Pithampur,
Manufacture equipment – M.P Earth Moving Divested Chennai
of Cars & Hosur, Division Sold off to Car Plant
Trucks – Karnataka Caterpillar
Uttarpara,
W.B
 References
 Vision & Mission Statement: http://www.hindmotor.com/aboutus.asp
 Key Milestones: http://www.hindmotor.com/miles.asp
 Outlander Introduction: https://www.cnbctv18.com/videos/auto/hindustan-motors-
launches-outlander-in-india-574921.htm
 Information Source : https://en.wikipedia.org/wiki/Hindustan_Motors
 Analysis Help from: https://www.ukessays.com/essays/marketing/company-and-
market-analysis-of-hindustan-motors-limited-marketing-essay.php
 https://www.bseindia.com/xml-data/corpfiling/CorpAttachment//2018/9/6072cc4f-
b211-4644-8e5f-6a08fbf06a0e.pdf
Thank You