COMPETITIVE STRATEGIES – FINAL PROJECT

PRESENTED BY
SHARJEEL ABUZAR
NAILA NAZEER KHAN
RAMSHA NASIR KHAN
OSAMA MOHSIN

FACILITATOR
MAHNOOR MAQSOOD
 INTRODUCTION OF THE COMPANY

 A joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies,
Pakistan.
 Incorporated in November 1992 and a joint venture agreement was signed in August 1993.
 Since 1994 dealership network has been expanded and the company has sixteen 3S (Sales, Service,
and Spare Parts) and thirty 2S (Service and Spare Parts) Pit stops network in all major cities of
Pakistan.
VISION STATEMENT

“To be the first preference at every level of car lovers and be the market leader.”

MISION STATEMENT

“A dynamic growth-oriented company through excellence in quality, dedication to provide greater fuel
efficiency at competitive prices, and service ensuring attractive returns to equity holders, rewarding
associates according to their ability and performance, fostering a network of engineers and researchers
ensuring unique contribution to the development of the industry, customer safety, satisfaction and
protection of the environment by producing emission friendly green products as a good corporate citizen
fulfilling its social responsibilities in all respects”.
STRATEGIC GOALS

Customer Quality Technology

Local
Shareholders Manufacturin Employees
g

Corporate
Citizen
Porter Five Forces Analysis
Value Creation
Value Creation

Striving to be a Company that society wants

to exist by sharing joys with people throughout
the world.
 Performance Diagnosis

Challenges faced by Honda:

Honda’s Action Plan: Profit, Cash Flow, and Enterprise
New entrants – specifically in the Value – Latest figures from 2021
SUV segment MOUs with various Banks   
Gross Profit – Rs. 3,775,944,000
Declining industry trend in 2020. Addition of new Dealerships Operating Profit – Rs.2,896,786,000
Net Profit – Rs. 1,793,205,000
Boom in the industry since 2021. Cash flow – Rs. 14,920,536,000
Enterprise Value - Rs 67.36 billion
Supply Challenges
CSR
Competitive Advantage - perceive Honda as a premium/prestigious brand, owing to
superior design, features, and technology.

1 2

Customers Suppliers

3
4

CSR Policy Making

Isolating Mechanism

• it must identify the competitive

advantage of a rival
• it must have an incentive to
imitate Dealership
• it must be able to diagnose the
sources of the rival’s competitive
network
advantage
• it must be able to acquire the
resources and capabilities
necessary for imitation
Porters Generic Strategies
 DIVERSIFICATION & GROWTH

A key factor on the Honda global success is the strong

Economical and Efficient cars, now that this segment is
becoming more and more popular worldwide.

Honda ranks as fifth largest car brand in the World, having

overtaken Hyundai during the 2017, and now only a few
units behind the fourth place, actually held by Nissan.

Honda is best known for its cars, bikes and power

equipment.
VERTICAL INTEGRATION OF HONDA

Vertical integration, all parts are imported in the

locale company and a plant is set as an assembly unit.

In Pakistan the Atlas Honda is responsible for the

dealerships integrations, which serves as a distribution
channel for the company.

Vertical integration is a corporate level strategy in

which a big firm seeks to cut on costs and improve on
quality through accessing and controlling the value
chain.

Honda has used vertical integration successfully to

market its brand as a low-cost car manufacturer and to
gain customer loyalty.

Unlike its big American, European, and Asian

competitors such as Ford and Kia, Honda are directly
responsible for manufacturing the engines fitted onto
their cars and motorcycles.
Global Strategy
 Corporate Strategy

 Honda's portfolio incorporates three organizations: Automobiles business, Motorcycles business, Power
business.
 Honda has dedicated in one essential rule: construct items near the client.
 Honda has worked effectively in 28 bike plant in 21 nations.
 Honda is currently venturing into robot industry with ASIMO.
 Business Strategy

 Honda items in all actuality do think often about the affordable, ecological, and social issues.
 Honda started bringing together its different showroom channels into a solitary Honda deals channel.
 Honda's worldwide systems some way or another incorporate the globalization trademark.
 Honda is continuing to include in the innovative work that advantage individuals in the future through
driving edge innovation.
 Operational Strategy

 Honda works in the overall market - with 134 creation offices in 28 nations and at 31 R&D offices in 15
nations.
 167000 Honda representatives and partners serve 23 million clients overall yearly..
 Honda is pushing the freedom of their nearby administration and deals with tasks, simultaneously with
coordinating and forward-looking arrangement for every locale.
 Locale work under the lead rules that partners in assessing and overseeing chances, consenting to
regulations and guidelines, and keeping an elevated degree of straightforwardness at the functional level
 Individual Strategy

1. The Joy of purchasing.

2. The Joy of selling

3. The Joy of creating

 Tech based industry &
management of innovation
"What I am exploring is not innovation, yet rather what individuals like," Soichiro Honda.

The point of Honda's exploration isn't simply to research innovations yet to likewise attempt research that
reaches out to individuals' qualities.

This is on the grounds that investigating individuals' qualities will empower Honda to make new worth
through the development of neglected spaces.
Honda R&D has separate examination communities for the cruiser, car and power
items organizations to explore and foster items.

These examination communities have laid out structures in their separate locales to do profoundly effective item
improvement as per the items and market qualities of each Business.

Honda R&D advances wide-running in-house improvement that

incorporates items as well as advancements for natural substances and components.
Honda is embracing open development. In view of the idea
of "Simulated intelligence × Data × Honda's assets," we are running after Mono-zukuri (the specialty of making
things) and Koto-zukuri (new encounters drawn from the specialty of making things)

Honda laid out R&D Center X, which adopts a forward-thinking strategy to take care of R&D in "new worth"
regions in front of new difficulties.

Research and development Center X will lead R&D with attention on long haul procedure is the thought of
Honda's optimal picture for 2030 and with 2050 as its beginning stage.
Recommendations
More focus on the 3s dealership
across the country.

Betterment of the locally

assembled cars as Civic is know
n as “Kagaz” in the local market.

Expansion the product line

which should include cars in
1000cc and 660cc category.