The fallacy of dominance: why Hero MotoCorp is not an IndiGo despite being a market leader

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Synopsis
Hero MotoCorp’s market share advantage isn’t the same as that of IndiGo. While IndiGo sees no competition anywhere on the horizon, the ground is shifting right under Hero’s feet with new technology and fresh designs finding favour with customers. The faster it realises that the better it will be for its shareholders.

Two companies — Hero MotoCorp, the two-wheeler maker; and IndiGo, the low-cost airline — have little in common. What puts them in the same group is the dominant market share they enjoy in their respective industry. Hero MotoCorp has 32% market share in two-wheelers. When the category is just motorcycles, then the share climbs to 45%-50%. In Indian aviation, IndiGo stands alone at the top of the pile with a market share of 61%. However, the