Company Background

• The biggest motorcycle company in Indonesia

• First year production is only 1500 unit and then skyrocketed to
30.000 unit the next year and keeps growing until this day
• PT. Federal Motor do merger with the name of Astra Honda Motor
Vision and Mission

• Vision : Leading Indonesia’s Motorcycle market by achieving the

desires of the customers, creating happiness and contributing to
Indonesia’s society
• Mission : Creating mobility solution for Indonesia’s society with the
best product and services
Long Term Objectives
Leading Motorcycle Company in
Indonesia

Reasonable Price

Highest Efficiency

Customer’s Satisfaction
Vision Mission Analysis

The vision and mission analysis of Astra Honda Motors proves that
they are constantly striving to deliver the best products to their
customers while also maintaining a competitive advantage in the
Indonesian Motorcycle Market
Importance (Benefits) of Vision and
Mission Statements
To Ensure To Provide To Establish

ToToServe
Serve ToToFacilitate
Facilitate
To Specify
Mission Statement Components

Customers Technology Self-concept

Products or Concern for Concern for

services survival public image

Markets Philosophy
Vision and Mission Relation: Is It
Achievable
Astra Honda Motors Vision and Mission is achievable because
it understands what the customer's needs and built their whole
Strategic Management around that concept.

The success that Astra Honda Motors achieve as one of the

leading motorcycle companies in Indonesia is a result of
effective and efficient strategies execution.
Michael Porter’s Five-Forces Model

Bargaining Power Bargaining Power Threat Of New

of Buyers of Supplier Entrants

Rivalry Among Threat of

Existing Substitute Product
Competitor or Services
External Factor Evaluation (EFE) Matrix
KEY EXTERNAL FACTORS Weight Rating Score

OPPORTUNITIES      

Indonesia dense population 0.10 3.5 0.35

Trend in Indonesia 0.15 4.0 0.60

Export opportunities 0.05 3.0 0.15

High public trust towards Honda motorcycle 0.10 3.0 0.30

High economic growth 0.10 3.5 0.35

THREAT      

Strict product competition 0.20 3.0 0.60

Global economic crisis 0.15 3.0 0.45

Rupiah fluctuation 0.10 2.0 0.20

Natural disaster 0.05 2.0 0.10

TOTAL 1.00   3.05

Competitive Profile Matrix
Critical Success Factors Weight Honda Yamaha Suzuki

Rating Score Rating Score Rating Score

Advertising 0,20 3 0.60 4 0.80 3 0.60

Quality of product 0,10 4 0.40 3 0.30 3 0.30

Price competitiveness 0,10 3 0.30 2 0.20 2 0.20

Management 0,10 3 0.30 4 0.40 3 0.30

Financial position 0,15 4 0.60 3 0.45 2 0.30

Consumer Loyalty 0,10 3 0.30 3 0.30 2 0.20

Global Expansion 0,15 4 0.65 3 0.45 2 0.20

Market share 0,10 4 0.40 3 0.40 2 0.20

TOTAL 1   3.55   3.30   2.4

Internal Assessment

Role statements
Conduct primary
and organizational
market research
framework

Financial
Critical resources performance and
position
Research-Based View Analysis

The RBV approach to competitive advantage contends that internal

resources are more important for a firm than external factors in
achieving and sustaining competitive advantage.
Internal Factor Analysis
Strengths Weight Rating Score

 AHM’s product has a high quality compared to its competitor 0,10 4,0 0,40
 Service and distribution points are easily found around Indonesia
 Low-Cost Production

0,10 3,5 0,35

 Brand Image in Indonesia’s Society
 

0,15 4,0 0,60

0,10 3,5 0,35

Weakness      

 Outdated motorcycle design 0,15 3,0 0,45

 Expensive Spareparts      
 Imports raw materials 0,10 3,0 0,30
 Promotion isn't very appealing 0,15 3,0 0,45
0,15 3,0 0,45

Total 1.00   3.35

Financial Analysis
Financial
analysis is
used to
evaluate
economic
trends in the
motorcycle
market and
determine
Astra Honda
Motors
position
Integration Strategies & Intensive Strategies

To expand in the global

PT. Astra Honda Motor market, PT. Astra
(AHM) applies the Honda Motor practices
Forward Integration the Market
Development strategy
Michael Porter’s Five Generic Strategies

GENERIC STRATEGIES  

Cost Leadership Differentiation Focus

Size of  

Market Type3
Type 1
Large
Type 2
 

 
Type 4
Small Type 3
Type 5
The Strength-weakness-Opportunities-Threats
(SWOT) Matrix
 
 
 
 
 
 
 
Opportunities
o High economic growth
in Indonesia
o Indonesia dense
population
o Indonesian people's trends
to have a motorbike
o Export opportunities
o High public trust
Towards Honda
motorcycles
Threats
o Rupiah fluctuation
o Indonesia purchasing power
that hasn’t improved
o Strict product competition
Strengths
o Strong brand image
o High quality product
Weakness
o Expensive product prices
o Price of spare parts
o Easy to find quite expensive From this SWOT
Showroom, service o Promotion is not that Matrix we found
station and spare parts attractive and limited
o Offering more o There is no brand that, Astra Honda
diverse product ambassador that representing must focus on the
o Competent human resources product image
    WO and ST strategy
SO Strategy WO Strategy because the WO
o Optimizing production o Making a product with a
capacity Good prices strategy is to, aim at
o Conduct a community   improving internal
education through a safety riding o User education
weaknesses by
campaign (ex: at school) about genuine spare parts
taking advantage of
  external
o Become more active to o Searching for a brand ambassador that
export to the other countries representing product image opportunities and
    the ST Strategy that
ST Strategy WT Strategy focus on firm’s
o Offer a longer credit o Existence of strengths to avoid or
period Un-original spare parts (KW1)
o Prolong the guarantee o More intense promotion reduce the impact
period   of external threats
   
with the company
strength.
The Strategic Position and action
Evaluation (SPACE) Matrix
Honda has a strong competitive position in the market with rapid
growth. It needs to use its internal strengths to develop a market
penetration and market development strategy. This can include
product development, integration with other companies and
acquisition of competitors.
Boston Consulting Group (BCG) Matrix
From the table
above, we found
that two of our
product segment is
in cash cows
position. Which is
Duck Bike and
Motor Sport
Segment. With low
market growth but
high market share.
Yamaha market share in Honda market share in Relative market
In this position the
Segment Indonesia Indonesia share Market growth rate strategy that we
Automatic Bike 19.90% 79.90% 4.015 12% can use is Product
Duck Bike (Motor Development
cub) 52.60% 47.40% 0.9 -7%
Motor Sport 19% 67% 3.52 -4%
The Internal – External (IE) Matrix

Because Astra Honda

Motor is in quadrant I
in the IE Matrix, Astra
Honda Motor should
grow and build its
position. The
company also need to
pursue strategies
focus on backward
integration this can
be done by purchase
or merger with Astra
Honda Motor
suppliers
The Grand Strategy Matrix
The Quantitative Strategic Planning
Matrix (QSPM)
  Strategic Alternatives
Product Development Market Development
 
Strengths Weight AS TAS   AS TAS
AHM’s product has a high quality compared to its competitor 0,10 4 0,40   4 0,40

Service and distribution points are easily found around Indonesia 0,10 3 0,30   2 0,20

Low Cost Production 0,15 4 0,60   4 0,60

Brand Image in Indonesia’s Society 0,10 2 0,20   3 0,30
Weakness
Outdated motorcycle design 0,15 3 0,45   2 0,30
Expensive Spareparts 0,10 4 0,40   4 0,40
Imports raw materials 0,15 2 0,30   1 0,15
Promotion isn’t very appealing 0,15 1 0,15   2 0,30
Total 1,00          
 
Opportunities

Indonesia dense population 0,10 3 0,30   2 0,20 From the QSPM Matrix we
Society trends 0,15 4 0,60   3 0,45 found that Honda is better to
focus on the Product
Export opportunities 0,05 2 0,10   1 0,05
Development strategy rather
High public trust towards Honda motorcycle 0,10 3 0,30   4 0,40 than searching for new
High economic growth 0,10 3 0,30   4 0,40 segment of Market, Honda
Threat   need to maintain their brand
leadership in Indonesia it’s the
Strict product competition 0,20 2 0,40   2 0,40
main focus for Astra Honda
Global economic crisis 0,15 2 0,30   3 0,30
Motor. For example, Honda
Rupiah fluctuation 0,10 3 0,30   4 0,40 can upgrade its features,
Natural disaster 0,05 1 0,05   1 0,05 models and Machine CC.
TOTAL 1,00   5,45     5,30
MARKETING,
FINANCE/ACCOUNTING, R&D, AND
MISS ISSUES
Marketing :
Advertising: Printed and Television, Finance of Honda
Sponsorships and partnerships
Well-built CSR

Research and Management Information

Development of Honda : System of Honda :
What I am researching is not Honda is the world largest producer
technology, but rather what people of the motorcycles and internal
like combustion engines
Globalization Culture
• Unlike any other multinational companies that almost all of their
subsidiaries are controlled by the headquarters. The companies that
globalize their operations in other countries cannot decentralize
their critical operations like R&D, design, engineering, and other
critical aspects of the vehicles
Conclusion
• To develop competitive advantage on an ongoing basis (The
Sustainable Competitive Advantage / SCA) (Akker, 1998), the
strategy can involve
• 5 strategic actions that can be used by the company
• Vision and Mission