Honda
1. How does each of the two perspectives explain Honda’s success in the US?
Case A explains from the perspective of the writers of the BCG study. It concludes five reasons for Honda’s success in the US.
Firstly, Honda has a deliberate strategy with a clear goal that to achieve a big market share in the American market. It is said that Honda’s primary objectives are keeping the sales volume rather than short-term profitability. The essence of this strategy is to make the sales volume grows faster than competitors. Therefore, Honda could increase his market share. Besides, Honda set their price for his market share target. They may lower the price to achieve the target if they need to do so.
Secondly, Honda has a comprehensive sales plan. Honda chooses the middle-class as his target customers, and chooses to sell beginning from the West Coast and moving eastward. Different from American and European companies in the US, Honda provides a kind of lightweight motorcycles with three-speed transmission, an automatic clutch, five horsepower, an electric starter, and a step-through frame. Compare with other motorcycles, his model is lighter, faster, easier to drive, especially for women. Besides, it is less than $250 in retail, which is much cheaper than others (Christiansen & Pascale, 2011). Some people don’t believe the lightweight market has a big potential of profit, but Honda believes that motorcycles could be sports vehicles rather than transportation vehicles. It grabs the special needs of customers, and provides the products they want.
Thirdly, Honda improves products quickly. At the beginning, Honda focuses on technology. The Honda Technical Research Institute was established in 1946. In order to compete with 4-stroke engine, which introduced by competitors, Honda promotes a superior 4-stroke design that doubled horsepower without additional weight. It has a strategy that takes leadership in product innovation.
Fourthly, a good selling and distribution system
Case A explains from the perspective of the writers of the BCG study. It concludes five reasons for Honda’s success in the US.
Firstly, Honda has a deliberate strategy with a clear goal that to achieve a big market share in the American market. It is said that Honda’s primary objectives are keeping the sales volume rather than short-term profitability. The essence of this strategy is to make the sales volume grows faster than competitors. Therefore, Honda could increase his market share. Besides, Honda set their price for his market share target. They may lower the price to achieve the target if they need to do so.
Secondly, Honda has a comprehensive sales plan. Honda chooses the middle-class as his target customers, and chooses to sell beginning from the West Coast and moving eastward. Different from American and European companies in the US, Honda provides a kind of lightweight motorcycles with three-speed transmission, an automatic clutch, five horsepower, an electric starter, and a step-through frame. Compare with other motorcycles, his model is lighter, faster, easier to drive, especially for women. Besides, it is less than $250 in retail, which is much cheaper than others (Christiansen & Pascale, 2011). Some people don’t believe the lightweight market has a big potential of profit, but Honda believes that motorcycles could be sports vehicles rather than transportation vehicles. It grabs the special needs of customers, and provides the products they want.
Thirdly, Honda improves products quickly. At the beginning, Honda focuses on technology. The Honda Technical Research Institute was established in 1946. In order to compete with 4-stroke engine, which introduced by competitors, Honda promotes a superior 4-stroke design that doubled horsepower without additional weight. It has a strategy that takes leadership in product innovation.
Fourthly, a good selling and distribution system
Cited: Christiansen, E. T., & Pascale, R. T. (2011, March 16). Honda (A). Harvard Business School. Christiansen, E. T., & Pascale, R. T. (2011, March 16). Honda (B). Harvard Business School. Mintzberg, H. (1987, Fall). The Strategy Concept I: Five Ps For Strategy. California Management Review, 11-24. Moore, K. (2011, March 28). Porter or Mintzberg: Whose View of Strategy Is the Most Relevant Today? Retrived from http://www.forbes.com/sites/karlmoore/2011/03/28/porter-or-mintzberg-whose-view-of-strategy-is-the-most-relevant-today/ Viki, T., (2014, March 12). On Strategies Deliberate and Emergent: A Corporates Startup Approach. Retrived from http://www.tendayiviki.com/blog/on-strategies-deliberate-and-emergent-a-corporate-startup-approach