Honda Entry Into Us Market - 1529 Words

A. What role did economies of scale and experience curve play in Honda’s successful enrty into US market / motorcycle market? In the late 1950’s Honda contemplated a bold move: entering the motorbike market in the United States. Today, Honda is a dominant player in the US, selling a wide range of models in large numbers. But its start could not have been more improbable or less likely to succeed. It was only by staying flexible to an emerging understanding of what the problem and the opportunities were, that Honda succeeded in its long shot. Honda’s Native Success Honda had done well in its native Japan, leaping in a short amount of time to the number one position largely on the strength of its Super Cub model, which was based around†¦show more content†¦Emphasis on Market Share through advertising Honda was following a strategy of developing region by region. Over a period of four to five years they moved from the west coast of America to the east coast. The report showed the emphasis which Honda paid to advertising when the company spent heavily on the advertising theme you meet the nicest people on a Honda thereby disassociating themselves from the rowdy, hell s angels type of people. Essentially the BCG is portraying Honda as a firm dedicated to being a low cost producer, utilising its dominant position in Japan to force entry into the U.S market, redefining that market by putting up the nicest people image and exploiting its comparative advantage via aggressive advertising and pricing. Strenghs of Honda Specialisation of roles The strengths of Honda start with the roles that the founders played. Honda was an inventive genius with a large ego and a volatile temperament. His main concerns were not about the profitability of the company or its products, but rather to show his innovative ability by producing better engines. Fujisawa on the other hand thought about the financial section of the company and how to market the ideas. He often challenged Honda to come up with better engines. By specialising in their own abilities the two of them were able to pool together resources and function effectively as a team. PositiveShow MoreRelatedThe Honda Effect Case Study1579 Words   |  7 PagesIntroduction Honda is a Japan based company and is the world’s largest manufacturer of motorcycles as well as the world’s manufacturer of motor vehicles, producing more than 14 million internal motor vehicles each year. The Honda Motor Company was founded by Soichiro Honda in 1948. In 1959, he opened the American Honda Motor Company, so he could fulfil his dream of building a high performance motorcycle and marketing it globally. The discussion below briefly emphasises on the strategy used by Honda to gainRead MoreThe Honda Effect1627 Words   |  7 PagesINTRODUCTION The two reports are based on Honda’s entry onto the US. 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