Eicher Motors - Corporate Strategy

Executive Summary        4

Introduction        5

Methodology, Source of Data and Presentation Schema        6

Company Profile        7

Problem Statement        8

Strategic Analysis of the Problem and Decisions taken        10

1.        Disinvestment        10

2.        Business Level Strategic Development        10

3.        Focus on R & D and Product Innovation        11

4.        Focus on Quality improvement and Increasing of Efficiency        11

5.        Improved Reach and Connect        12

SWOT Analysis        13

Porter’s Five Forces Model        15

1.        Threat of New Entrants        15

2.        Competitive Rivalry        15

3.        Threats of Substitution        15

4.        Bargaining power of customers        15

5.        Bargaining power of supplier        16

PESTLE Model        17

1.        Political Environment        17

2.        Economic Environment        17

3.        Social Environment        17

4.        Technological Environment        17

5.        Environmental Environment        17

6.        Legal Environment        17

Conclusion:        18

Recommendation        19

Appendix:        21

Table of Figures

1. Figure 1: Share price of Eicher Motors from 2007 to 2017.  
2. Figure 2: Depicts the top 10 selling bikes in the Indian Market.
3. Figure 3: Percentage rise in returns Eicher Motors Vs Bajaj Auto Vs Hero MotoCorp.
4. Figure 4: Key Milestones of Eicher Motors. Source: Royal Enfield website
5. Figure 5: Growth Trajectory of Royal Enfield from 2004 -2013.
6. Figure 6: Shows the new products that have been introduced in the market post 2000 along with the existing offering.
7. Figure 7: The above data has been mapped based on the New Worth as in the Balance sheets of Eicher Motors.

Executive Summary

Royal Enfield, the largest revenue contributor to the Eicher Motors, was not always the market frontrunner in the motor industry of India. After being sold to the Enfield India in 1971 (renamed as Royal Enfield post it’s merger with Eicher Motors in 1994) the fame of being the touted motorbike of World War II  began to slowly fade and reached a point in 2000 that the parent company – now Eicher Motors decided to either sell or close the business.  After a persuasion by Siddhartha Lal, a member of the Lal family, who was determined to change the fate of the Royal Enfield motorbike. He was soon appointed as the CEO of Eicher Motors to give his proposal to revive the motor business a try.