Winds of Change at Hero Honda
Case number:
A06-22-0006
Abstract
Hero MotoCorp was initially Hero Honda Motors, a Joint Venture (JV) between Honda Motors of Japan and Hero Group of India launched in 1984. The JV benefitted from the complementary strengths of the two partners: Honda’s technical competence in motorcycles and Hero’s understanding of the Indian market. By 2001, the JV was the world’s largest two-wheeler manufacturer. The JV was dissolved in 2010, and Hero group bought Honda’s JV stake. It was a difficult decision for the Hero Group to give up Honda’s technical and R&D support and venture out on its own. Many analysts and industry watchers wrote off the renamed Hero MotoCorp and predicted tough days ahead. Though the company faced some challenges, it succeeded as a standalone company.
Teaching
This case can be used in strategic management or international business courses to examine the life cycle of international JVs (IJVs).
Students will learn about:
1. The importance of JVs in the growth strategy of organizations.
2. The risks and opportunities of partnering.
3. The decision predicament faced when JVs are terminated.
4. How to develop strategic priorities after JV termination.
Students will learn about:
1. The importance of JVs in the growth strategy of organizations.
2. The risks and opportunities of partnering.
3. The decision predicament faced when JVs are terminated.
4. How to develop strategic priorities after JV termination.
Case number:
A06-22-0006
Year:
Setting:
East Asia, India
Length:
14 pages
Source:
Published sources
Topics
Andrew Inkpen
J. Kenneth and Jeanette Seward Chair in Global Strategy & Director, Thunderbird Case Series