INDIVIDUAL

ESSAY 1

INTERNATIONAL

BUSINESS

STRATEGY

Lecture: Bùi Thùy Dương

VI DUC HUY-HS160620-IB1606
 TABLE CONTENT

1: Overview of Honda Vietnam Company 2

1.1: Honda Vietnam 2
a. Honda Motorcycle 2
b. Honda Cars 3
1.2: Honda's philosophy 4
1.3: Three joys 5
1.4: Company creed (mission) 5
1.5: Management policy 5

2: Honda's 5 competitive pressure model. 6

2.1: The strength of the service provider can provide 6
2.2: Risk of substitution 7
2.3: Barriers to entry 7
2.4: Power of customers, source of use 9
2.5: The level of competition 9

3: Conclusion 11

1. Overview of Honda Vietnam Company

1.1: Honda Vietnam

Established in 1996, Honda Vietnam is a joint venture between
Honda Motor Company (Japan), Asian Honda Motor Company
(Thailand) and Vietnam Engine and Agricultural Machinery
Corporation with 2 industries. Main products: motorcycles and
cars. 25 years of presence in Vietnam, Honda Vietnam has
constantly developed and become one of the leading companies in
the field of motorcycle manufacturing and a prestigious automobile
manufacturer in the Vietnamese market.
Honda Vietnam is proud to bring customers high quality products,
dedicated services and contributions to a healthy traffic society.
With the slogan "Power of Dreams", Honda wishes to share and
realize dreams with everyone by creating new joys for people and
society.
a. Honda Motorcycle
Understanding that motorbikes are an important and main means of
transportation in Vietnam, Honda Vietnam always tries its best to
provide customers with the highest quality motorcycle products at
reasonable prices, manufactured from environmentally friendly
factories.
Since Honda entered the Vietnamese market, the company has
continuously invested in building production infrastructure to meet
the increasing demand of the market - where motorcycles are the
vehicle accounting for nearly 90% of the total. in big cities. Up to
now, Honda Vietnam has 6 factories manufacturing and assembling
motorcycles and motorcycle parts.

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b. Honda Cars

In March 2005, Honda Vietnam officially received a license from

the Ministry of Planning and Investment allowing automobile
production and assembly in Vietnam - marking an important
historical milestone in the company's development.
Starting its auto business in 2006, after just over 1 year, Honda
Vietnam has successfully built a factory, dealer network, sales,
service, and safe driving training programs for customers. The
company staffed dealers and launched the first model, the Honda
Civic, in August 2006. Constantly making efforts to diversify
products, the Honda CR-V model continued to be introduced by the
Company in December 2008. and Honda City in June 2013. In
addition to domestically produced cars, Honda Vietnam also
imported high-end sedans and multi-purpose vehicles, respectively,
Honda Accord and Honda Odyssey to meet daily demand. the
higher the customer. In 2016, Honda Vietnam switched to
importing Honda Civic models instead of domestic production. Up
to now, Honda Vietnam has provided the Vietnamese automobile
market with 3 models to serve the diverse needs of customers:
sedans (large, medium and small), SUVs and SUVs. MPV.
With continuous efforts, Honda Vietnam is not only known as a
famous motorcycle manufacturer but also a prestigious automobile
manufacturer in the Vietnamese market.
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1.2: Honda's philosophy
The foundation of the Company's Principles consists of 2
fundamental beliefs:
- Respect people
- Three joys
a. Respect people
Every human being is born as a free, unique individual, with the
ability to think, reason and create, and the ability to dream.
“Respect for people” requires Honda to promote and develop these
ethos within the company by respecting individual differences and
trusting each other as equal partners.
+ Trust
The relationship between Honda members is based on mutual trust.
That trust is created by the awareness of respecting the individual,
helping those in need, getting help in times of trouble, sharing
knowledge, making sincere contributions to fulfilling
responsibilities.
+ Equality
Recognize and respect individual differences within each person
and treat each other fairly. Our company is committed to following
this principle and creating equal opportunities for each individual.
Opportunities for individuals regardless of race, sex, age, religion,
origin, nationality, education, economic or social status
+ Active
Think creatively and act on your own initiative and judgment, and
be well aware of responsibility for the results of those actions.

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1.3: Three joys
Honda puts 3 fun first:
- The Joy of Buying
Achieved through providing products and services that better meet
the needs and expectations of each customer.
- Sales Joy
Achieved when those engaged in the sale and service of Honda
products develop relationships with customers based on mutual
trust.
- Creative Joy
Achieved when product quality exceeds expectations and we take
pride when work goes well.
Achieved when Honda members and suppliers involved in the
development, design and production of Honda products realize the
joy that Honda customers and dealers derive from their efforts. .
1.4: Company creed (mission)
Maintaining a global perspective, we do our best to provide the best
quality products at reasonable prices to satisfy our customers all
over the world.
1.5: Management policy
- Always reach with ambition and freshness.
- Respect solid theory, develop new ideas, and make the best use
of time.
- Enjoy work and encourage open communication.
 - Constantly striving for a harmonious working process.
- Always consider the value of research and effort..

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2: Honda's 5 competitive pressure model.

2.1: The strength of the service provider can provide

Suppliers are the first and most important factor in the entire model
of Michael Porter's 5 competitive forces. The quality of the product
has always been Honda's top priority when it comes to car
production. The current car brands are all modern and diverse. So
quality is interchangeable. Compared to previous years, price is no
longer an important factor for consumers when choosing a car.
Vehicle companies compete with each other based on product
variety in the market and durability. Next comes the popularity of
the brand and then the price. Honda is a proud brand because it
always develops its products and the brand. They always fully meet
the criteria that customers are interested in.

Honda's goal is to create a competitive advantage with products

that are suitable for the majority of people at low cost. Thus,
stemming from the multinational promotion strategy for motorcycle
products, Honda has focused on building a name for the brand.
Honda has developed its manufacturing plant in Vietnam by
skillfully taking advantage of the country's geographical
advantages.

Besides, developing diverse product lines is also a strategy that

Honda focuses on, from motorcycles to cars. Honda targets
different customer segments, whether it's low-priced cars to high-
end segments.

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2.2: Risk of substitution

The next element in Honda's five-force model is the threat of

substitution. In fact, Honda is a brand that has held a strong
position in the motorcycle market. Honda has been attached since
the early years of building the Vietnamese economy, which makes
it difficult for many other brands to shake their position.

However, with the spirit of never resting on victory, Honda always

analyzes the target market. New car lines are also constantly being
developed and born. This has helped Honda have a high level of
competition in the market and meet all the requirements of
consumers in terms of durability, fuel economy, beautiful design.

2.3: Barriers to entry

When entering any market, barriers are inevitable. Let's analyze in

detail the entry barrier pressure in Honda's 5 competitive pressure
model . Is a brand originating from Japan and has a great reputation
in the European and American market. Therefore, Honda's style is
also somewhat Americanized. This is another difficulty for Honda
when entering the Vietnamese market.

The national economy has not yet developed: Since arriving in

Vietnam, Honda has also encountered great barriers not only
from their competitors. When the economy here has not yet
developed, people still do not have the conditions to be able to
use high-priced product lines like the foreign market. Until
now, the psychology of the majority of Vietnamese people still
favors cheap prices. This forced Honda to adjust the price to
suit the conditions of the people. 7
 Product characterization: After a long time, the market has
grown rapidly, the car market tended to be saturated until early
2011. In order to be able to compete in all market segments,
Honda has applied diversification strategy and product
characteristics.

Honda has sought to develop many different product lines,

targeting different customers. The customer segment of Honda cars
is targeted from the popular to the high-end consumer segment.
Despite the variety of models, Honda has not lost the distinctive
features of its brand.
Besides competing with new product lines, Honda has also
succeeded in building a distribution system and warranty centers
nationwide.

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2.4: Power of customers, source of use

The power of customers is the force that cannot be ignored in

Honda's 5 competitive pressures model . When the Vietnamese
people through each development period have been building up the
consumption trend "Boycott Chinese goods". This is a favorable
condition for domestic car manufacturers. Motorcycle
manufacturers imported from China are almost eliminated from the
Vietnamese market.

Besides, after a period of relatively attachment to the means of

transport, which is motorbikes, the motorcycle culture is formed in
the majority of people. Surveys have shown that the percentage of
cars consumed is increasing day by day, but motorbikes are still the
dominant vehicle in Vietnam.

Understanding this, Honda has oriented to focus on the

development of motorcycles more in the Vietnamese market.

2.5: The level of competition

This is the final force in Honda's 5-pressure model of competition ,

which is competition within the motorcycle industry. Honda today
faces quite a few competitors in the Vietnamese market such as
Yamaha, Piaggio, Suzuki, etc. These brands will all expand and
develop in the future. There are also other factors such as the
brand's product portfolio, marketing, investment in technological
innovation and customer loyalty.

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Facing the competition of big competitors in automobile products
such as Ford, Toyota, Volkswagen, Hyundai, etc. Honda still needs
to focus on better future technology to find a difference and
maintain competitiveness. painting for yourself.

3: Conclusion

Thanks to the smart application of Honda's 5 competitive pressure

model, the brand has remained firmly in the leading position in the
domestic and international markets. Honda has achieved much
success in the motorcycle industry market with its share price
increasing day by day. This model helped Honda get a big picture
of how the industry affects their bottom line. From there, develop
business strategies that best suit market trends.
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3: Conclusion

Thanks to the smart application of Honda's 5 competitive pressure

model, the brand has remained firmly in the leading position in the
domestic and international markets. Honda has achieved much
success in the motorcycle industry market with its share price
increasing day by day. This model helped Honda get a big picture
of how the industry affects their bottom line. From there, develop
business strategies that best suit market trends.
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