The strategies from the beginning adopted by Hero Cycles in depressing macro-economic indicators of the sixties were to focus first in developing the most efficient supply chain. This would be a trigger for the concentration of bicycle part manufacturers with zero-inventory manufacturing systems (JIT). 'By 1975, Hero Cycles – some two decades after the first experimental bicycle rolled out – had become the largest manufacturer of bicycles in India, producing half a million cycles a year.
Hero's unique production schema – Just in Time or JIT – was the result of a peculiar set of circumstances. Along with this Hero, also laid the foundation of robust ancillaries to facilitate the production further by strengthening the supply chain mechanism.
Hero in 1977 created a full-fledged thriving exports division. With the growth of exports, capacity would have to expand to keep pace with demand. This created a unique ecosystem where Hero Cycles not only supplied the plant and the know-how for manufacture of bicycles but had a business for the supply of components and the component manufacturing entities in the group (Highway, Rockman, etc.,) to supply bicycles and components to more than ninety countries.
Hero cycles in a hostile and unfriendly business environment were able to roll out the first indigenously designed moped, the Hero Majestic with the thought that would power into the next phase of growth. Soon company entered into a foreign collaboration with Punch for technical know-how
The Case focus upon changes in business practices and strategic initiatives along with making managerial decisions in the family business with the changing need of the time. The case may be helpful for students to comprehend the following:
1. Analyzing the internal and external factors which push a business entity towards internationalization.
2. How models such as Ethnocentric Orientation, Regio-centric Orientation, Geocentric Orientation, and Polycentric Orientation (EPRG framework) help in analyzing Hero's transition from a local to a global firm?
3. What are the core strengths of the company on which strategic change initiatives were introduced with keeping pace with changing market conditions
4. Identification and linkages of key strategic decisions with the growth of the company
5. Importance of unfreezing the situation before implementing change
6. Importance of employee involvement in the change management process
7. Role of leadership in successful change management program
8. Identification and Leanings of best industrial practices