ROYAL ENFIELD (B): HARLEY-DAVIDSON X440 CHALLENGE
CASE STUDY SOLUTION
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SYNOPSIS
Royal Enfield has maintained its dominance in the 250–750 cubic centimetre (cc) mid-size motorcycle
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segment in India. After a COVID-19-induced lean patch, the company’s unit sales have skyrocketed to an
all-time high of 834,895 units in fiscal year 2022–23 (FY 2023). The demand for premium motorcycles is
growing significantly, which bodes well for Royal Enfield. However, the market leader has been confronted
with a big challenge. The alliance between Hero MotoCorp Ltd. (Hero) and Harley-Davidson Inc. (Harley-
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Davidson) has launched the Harley-Davidson X440—the most affordable Harley—to take on Royal
Enfield. Meanwhile, the alliance between Bajaj Auto Ltd. (Bajaj) and Triumph Motorcycles Ltd. (Triumph)
tio
has unveiled the competitively priced Speed 400. The initial response to the new motorcycles has been
overwhelming. What strategic options are available to Royal Enfield to maintain its market lead amid
intensified competitive rivalry?
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OBJECTIVES
• Understand corporate-level strategy.
• Identify strategic options to respond to price cuts.
• Develop a competitive profile matrix (CPM).
• Analyze different market-share management strategies.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
1. How has the “Rebalance” strategic initiative enabled Royal Enfield to maintain its competitive
position?
2. How should Royal Enfield respond to the “most affordable Harley” threat?
3. Develop a CPM for Royal Enfield and its major competitors.
4. What are the various market-share management strategies that Royal Enfield can adopt?
The Case Solution Starts From page 5
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ANALYSIS
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1. How has the “Rebalance” strategic initiative enabled Royal Enfield to maintain its competitive
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position?
Eicher Motors, the corporate parent of Royal Enfield, has adopted the Rebalance strategy as its broader
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purpose. The overarching aim of Rebalance is to create an “agile, resilient, and timeless business.” The
Rebalance strategy will enable Eicher to effectively capitalize on market opportunities and respond to
market challenges. This strategic approach rests on four pillars: growth, sustainability, the internal
So
combustion engine and electric vehicle, and brand-led customer experience. These pillars are the foundation
for sustained long-term growth and value creation for different stakeholders.
In sync with the Rebalance strategic objective, Eicher has outlined five strategic priorities for its motorcycle
division, Royal Enfield.
Build a Premium Brand in India with an Expansive Distribution Network
Royal Enfield has vintage appeal and enjoys a cult following. It is the undisputed leader in the mid-size
The Case Solution Starts From page 5
, EXHIBIT 1: COMPETITIVE PROFILE MATRIX
Critical success factor Royal Enfield Hero-Harley Mahindra Bajaja
WT RT WS RT WS RT WS RT WS
Product portfolio 0.05 4 0.2 2 0.1 3 0.15 3 0.15
Aspirational value 0.11 4 0.44 4 0.44 3 0.33 2 0.22
Distribution network 0.08 4 0.32 3 0.24 2 0.16 3 0.24
Product quality 0.10 3 0.3 4 0.4 3 0.3 4 0.4
Service quality
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The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Royal Enfield has maintained its dominance in the 250–750 cubic centimetre (cc) mid-size motorcycle
Sa
segment in India. After a COVID-19-induced lean patch, the company’s unit sales have skyrocketed to an
all-time high of 834,895 units in fiscal year 2022–23 (FY 2023). The demand for premium motorcycles is
growing significantly, which bodes well for Royal Enfield. However, the market leader has been confronted
with a big challenge. The alliance between Hero MotoCorp Ltd. (Hero) and Harley-Davidson Inc. (Harley-
n
Davidson) has launched the Harley-Davidson X440—the most affordable Harley—to take on Royal
Enfield. Meanwhile, the alliance between Bajaj Auto Ltd. (Bajaj) and Triumph Motorcycles Ltd. (Triumph)
tio
has unveiled the competitively priced Speed 400. The initial response to the new motorcycles has been
overwhelming. What strategic options are available to Royal Enfield to maintain its market lead amid
intensified competitive rivalry?
lu
So
OBJECTIVES
• Understand corporate-level strategy.
• Identify strategic options to respond to price cuts.
• Develop a competitive profile matrix (CPM).
• Analyze different market-share management strategies.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. How has the “Rebalance” strategic initiative enabled Royal Enfield to maintain its competitive
position?
2. How should Royal Enfield respond to the “most affordable Harley” threat?
3. Develop a CPM for Royal Enfield and its major competitors.
4. What are the various market-share management strategies that Royal Enfield can adopt?
The Case Solution Starts From page 5
, e
pl
m
Sa
ANALYSIS
n
1. How has the “Rebalance” strategic initiative enabled Royal Enfield to maintain its competitive
tio
position?
Eicher Motors, the corporate parent of Royal Enfield, has adopted the Rebalance strategy as its broader
lu
purpose. The overarching aim of Rebalance is to create an “agile, resilient, and timeless business.” The
Rebalance strategy will enable Eicher to effectively capitalize on market opportunities and respond to
market challenges. This strategic approach rests on four pillars: growth, sustainability, the internal
So
combustion engine and electric vehicle, and brand-led customer experience. These pillars are the foundation
for sustained long-term growth and value creation for different stakeholders.
In sync with the Rebalance strategic objective, Eicher has outlined five strategic priorities for its motorcycle
division, Royal Enfield.
Build a Premium Brand in India with an Expansive Distribution Network
Royal Enfield has vintage appeal and enjoys a cult following. It is the undisputed leader in the mid-size
The Case Solution Starts From page 5
, EXHIBIT 1: COMPETITIVE PROFILE MATRIX
Critical success factor Royal Enfield Hero-Harley Mahindra Bajaja
WT RT WS RT WS RT WS RT WS
Product portfolio 0.05 4 0.2 2 0.1 3 0.15 3 0.15
Aspirational value 0.11 4 0.44 4 0.44 3 0.33 2 0.22
Distribution network 0.08 4 0.32 3 0.24 2 0.16 3 0.24
Product quality 0.10 3 0.3 4 0.4 3 0.3 4 0.4
Service quality
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The Case Solution Starts From page 5
