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    Case Analysis Honda (A)

    Uploaded by

    Devika Narula
    Honda entered the Japanese motorcycle market in 1949 by introducing lightweight, reliable motorcycles. In contrast to competitors who focused on a single design, Honda offered a multi-product line and prioritized product innovation. This strategy of exploiting economies of scale through standardized yet innovative designs was highly successful. Honda then expanded to the US market in the 1960s by establishing a subsidiary, targeting untapped consumer segments with affordable motorcycles, and emphasizing advanced manufacturing. Through heavy investments in R&D, manufacturing, sales, and dealerships networks, Honda achieved rapid growth and market share gains in the US. However, Honda will need to address threats from lower-cost competitors and changing consumer tastes by expanding globally and entering new premium

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    Case Analysis Honda (A)

    Uploaded by

    Devika Narula
    41 views8 pages
    Honda entered the Japanese motorcycle market in 1949 by introducing lightweight, reliable motorcycles. In contrast to competitors who focused on a single design, Honda offered a multi-product line and prioritized product innovation. This strategy of exploiting economies of scale through standardized yet innovative designs was highly successful. Honda then expanded to the US market in the 1960s by establishing a subsidiary, targeting untapped consumer segments with affordable motorcycles, and emphasizing advanced manufacturing. Through heavy investments in R&D, manufacturing, sales, and dealerships networks, Honda achieved rapid growth and market share gains in the US. However, Honda will need to address threats from lower-cost competitors and changing consumer tastes by expanding globally and entering new premium

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    Honda entered the Japanese motorcycle market in 1949 by introducing lightweight, reliable motorcycles. In contrast to competitors who focused on a single design, Honda offered a multi-product line and prioritized product innovation. This strategy of exploiting economies of scale through standardized yet innovative designs was highly successful. Honda then expanded to the US market in the 1960s by establishing a subsidiary, targeting untapped consumer segments with affordable motorcycles, and emphasizing advanced manufacturing. Through heavy investments in R&D, manufacturing, sales, and dealerships networks, Honda achieved rapid growth and market share gains in the US. However, Honda will need to address threats from lower-cost competitors and changing consumer tastes by expanding globally and entering new premium

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    41 views8 pages

    Case Analysis Honda (A)

    Uploaded by

    Devika Narula
    Honda entered the Japanese motorcycle market in 1949 by introducing lightweight, reliable motorcycles. In contrast to competitors who focused on a single design, Honda offered a multi-product line and prioritized product innovation. This strategy of exploiting economies of scale through standardized yet innovative designs was highly successful. Honda then expanded to the US market in the 1960s by establishing a subsidiary, targeting untapped consumer segments with affordable motorcycles, and emphasizing advanced manufacturing. Through heavy investments in R&D, manufacturing, sales, and dealerships networks, Honda achieved rapid growth and market share gains in the US. However, Honda will need to address threats from lower-cost competitors and changing consumer tastes by expanding globally and entering new premium

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    Case Analysis

    HONDA(A)

    Initiation of Honda in motorcycle


    segment

    Japanese motorcycle industry was loosely defined by 247 participants most of which were
    ill-equipped selling unreliable products.

    In 1946 Honda motor company established the Honda Technical Research Institute to
    focus on tech-focused innovations and strategies

    In 1949 Honda introduced a lightweight 50cc, 2-stroke, D-type motorcycle and in 1951
    Honda followed it up with a superior 4- stroke design.

    Honda acquired a plant to become a fully integrated producer.

    Honda Strategy
    Japanese industry tends to minimize risk by investing in one winning design until it became
    obsolete
    Honda differentiated itself . Honda
    offered a multiproduct line
    took leadership in product innovation
    exploited opportunities for economies of mass production by gearing designs to
    production objectives.
    It identified untapped market segment and designed product specifically for it.
    Results:
    The 50cc Honda was explosive success.
    With a demand of just 3000 units per month Honda gambled and acquired a 30000 unit per
    month manufacturing plant.

    Honda Strategy(Entry in US Market)

    Honda established a U.S. subsidiary, American Honda Motor Company, and developed the
    market region by region.
    Offered very small light weighted motorcycle in less than $250 retail

    Advertising strategy appealed primarily to the middle class consumers with the tagline
    you meet the nicest people on Honda.
    Results:
    Hondas US Sales rose from $500000 n 1960 to $77 million in 1965.
    Achieved product advantage through:
    Heavy emphasis on R&D and advanced manufacturing techniques which enabled it to
    introduce new models at prices below competitors.

    Interval between the conception and production of new products reduced to just 18
    months.

    Honda Strategy
    Primary objective of Honda was to focus on sales volume and improve
    market share position.

    Honda invested heavily on sales and distribution and extensive dealer networks.

    Honda improved product range in terms of comprehensiveness, features, and price which
    easily attracted good dealers. Good dealers directly influence retail sales.

    Premiums were very high for all the range of bikes which allowed for extra costs of duty,
    freight, and packing in shipping bikes from Japan to US.

    Focus was on long term profitability

    SWOT Analysis
    Strengths:
    Advanced manufacturing techniques and
    R&D, high production volume
    diverse products and innovation capability
    Extensive market research to tap untapped
    markets
    Huge sum spent for advertising and
    promotions and building dealerships
    Opportunity:
    Can use its extensive research and
    development techniques to optimize costs
    Look for emerging markets
    Extensive market research can be used to
    gauge changing consumer behavior

    Weakness:
    Long term pay offs
    High dependence on international
    market

    Threats:
    Competitors with lower costs
    Change in consumer tastes and
    preferences towards other brands
    People attraction towards premium
    US brand

    Way Forward

    Should focus on other areas as well because competition may catch up to low cost in
    future
    Should expand operations to markets other than US and European markets
    Should continue its current strategy of high production volume , improved productivity and
    long term profitability
    Should enter premium bike segment

    Thank You

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