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1. FACTS ABOUT HONDA MOTORS 2. MOTORBIKE MARKET IN US BEFORE HONDA ENTRY 3. POSITIONING OF HONDA IN US MARKET 4. COMPETITIVE FORCES OF STRATEGY 5. STRENGTH OF HONDA MOTORS 6. STRATEGY OF HONDA IN US (AS PER BCG) 7. COUNTER ARGUMENTS OF STRATEGY MENTIONED IN POINT 6 (BY PASCAL) 8. WHY DIFFERENCES IN THE ANALYSIS ?? 9. SUMMARY
FACTS OF HONDA:
1. Honda is the world's largest manufacturer of motorcycles as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. 2. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile Manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest automobile manufacturer in the world. 3. Honda headquarters: Minato, Tokyo. 4. Trades in: Tokyo Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. 5. Leadership 19481973 Soichiro Honda 19731983 Kiyoshi Kawashima 19831990 Tadashi Kume 19901998 Nobuhiko Kawamoto 19982004 Hiroyuki Yoshino 20042009 Takeo Fukui since 2009 Takanobu Ito
FACTS OF HONDA:
6. With high fuel prices and a weak US economy in June 2008, Honda reported a 1% sales increase while its rivals, including the Detroit Big Three and Toyota, have reported double-digit losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and the Accord were in the top five list of sales.
8. The company has assembly plants around the globe located at China, USA, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India, Thailand, and Turkey.
SUBSTITUTES
FIRM
COMPETITOR
SUPPLIERS
CUSTOMERS
FIRM:
Advantage of being the First Mover: 1. Build Hondas reputation with buyers. 2. Early commitment to new technologies & channels had a cost advantage. 3. First time customers will remain loyal to the firm, with repeated buying. 4. Moving first makes preemptive strike, making imitation hard / unlikely. Disadvantage of being the First Mover: 1. If pioneering leadership is more costly than imitating leadership. 2. When imitators products are primitive and follower wins over disenchanted buyers from leader with better products. 3. When demand side of market is skeptical about the benefits of the new technology introduced.
4. When due to market evolution late movers and fast followers respond suddenly to the
market changes with better version products.
SUBSTITUTES:
1. Anyone planning to buy a motorcycle ONLY, would not be expecting a substitute. The substitute can be assumed in forms of same type of product by different companies. 2. Anyone planning to buy a motorcycle as a TRANSPORT medium, can find substitutes in the terms of car, bus, trains.
CUSTOMERS:
1. As mentioned, initial customers for motorcycles were army, police, and the trouble makers, with a very limited portion of the gentlemen. negative image of bikers. 2. Honda extended the motorcycle concept over the common man with proper designs and marketing strategies.
TO SUMMARIZE ..
1. The success of Honda was not the result of senior management coming up with all the answers. In fact senior executives in most Japanese manufacturing companies do not take their strategic positions too seriously. 2. Salesman, cleaners and those working on the manufacturing floor all contribute to the company is run and thereby influence its strategic position. It is this ability of an organization to move ideas from the tom to the bottom and back again in continuous dialogue that the company values the greatest.