Honda (a)

Q1. Whats the strategy that allowed Honda to be so successful in the US food market? It is a fact that Honda had experient a remarkable success during the period from the late 50s to the end of the 70s. This success is a result of the strategy the company essential at that stage of its lifecycle. This strategy in principle is a technologically based strategy where Honda set up Honda Technical Research Institute (HTRI) in 1946. In the meantime, Honda demonstrable manufacturing expertise to become fully integrated producer of motorbikes components.In order to minimize the associated lay on the line, Honda offered a multiproduct line, taking leadership in product innovation by dint of the HTRI and exploiting opportunities for economies of mound ware by gearing design to mathematical product objectives. How is possible that Hondas many expensive investments lead to lower costs? The company wind a pregnant product advantage with a heavy commitment to R&D and produced manufac turing techniques.Honda use its productivity-based cost advantage and R&D readiness to introduce new models to the market in truth quickly and at prices below those of competitive machines. Over time, Honda had smoothly descending real prices. This price drop-off is experience-based which sum that as long as more experience is acquired, Honda is capable to develop new methodologies to produce motorcycles at lower cost. This was mainly due to senior high production volume and improved productivity of the Japanese labor. Q2. How did Honda come to have this strategy?Hondas strategy was a result of Hondas underlying ism which is a marketing philosophy i. e. grapping more market share and increasing the sales volume. Selling and scattering system was a tool to implement this philosophy. What inference do we have of forethought and planning in the company approach to production? Honda built a manufacturing plant with a capacity 10 time in excess of demand at the time of constructi on in 1958. Honda developed manufacturing expertise to become fully integrated producer of motorbikes components.Honda minimized risk through offering a multiproduct line, taking leadership in product innovation through the HTRI and exploiting opportunities for economies of mass production by gearing design to production objectives. merchandising? In the 1958 Hondas market research identified a large untapped market segment seeking a subatomic, unintimidating motorcycle that could be used by small motorcycle business for local deliveries. Honda advertizing concerted to change the image of motorcyclist through heavy campaigning towards middle strain consumers. Distribution?Honda followed a policy of developing the market region by region beginning with the west coast and moving eastward. Design? Honda designed the whippersnapper motors to mark off the market research results. In general, Products are updated or redesigned whenever a market threat or opportunity is perceived, price s are set at levels to achieve market share targets and will be cut if necessary, effective marketing systems are set up in all markets where serious competition is mean heedless of short term cost and finally plans and objectives look to long term payoff.Q3. To what degree was the US entry strategy thought out in advance? Honda was already the worlds largest motorcycle producer. Honda established a US subsidiary and began its push in the market by offering very small lightweight motorcycles. Honda followed a policy of developing the market region by region beginning with the west coast and moving eastward until it established the largest dealership network in the US.Honda (a)Q1. Whats the strategy that allowed Honda to be so successful in the US market? It is a fact that Honda had experienced a remarkable success during the period from the late 50s to the end of the 70s. This success is a result of the strategy the company developed at that stage of its lifecycle. This strateg y in principle is a technologically based strategy where Honda established Honda Technical Research Institute (HTRI) in 1946. In the meantime, Honda developed manufacturing expertise to become fully integrated producer of motorbikes components.In order to minimize the associated risk, Honda offered a multiproduct line, taking leadership in product innovation through the HTRI and exploiting opportunities for economies of mass production by gearing design to production objectives. How is possible that Hondas many expensive investments lead to lower costs? The company achieved a significant product advantage through a heavy commitment to R&D and advanced manufacturing techniques.Honda used its productivity-based cost advantage and R&D capability to introduce new models to the market very quickly and at prices below those of competitive machines. Over time, Honda had smoothly descending real prices. This price reduction is experience-based which means that as long as more experience is acquired, Honda is capable to develop new methodologies to produce motorcycles at lower cost. This was mainly due to high production volume and improved productivity of the Japanese labor. Q2. How did Honda come to have this strategy?Hondas strategy was a result of Hondas underlying philosophy which is a marketing philosophy i. e. grapping more market share and increasing the sales volume. Selling and Distribution system was a tool to implement this philosophy. What evidence do we have of forethought and planning in the company approach to production? Honda built a manufacturing plant with a capacity 10 times in excess of demand at the time of construction in 1958. Honda developed manufacturing expertise to become fully integrated producer of motorbikes components.Honda minimized risk through offering a multiproduct line, taking leadership in product innovation through the HTRI and exploiting opportunities for economies of mass production by gearing design to production objectives. Marketing? In the 1958 Hondas market research identified a large untapped market segment seeking a small, unintimidating motorcycle that could be used by small motorcycle business for local deliveries. Honda advertizing concerted to change the image of motorcyclist through heavy campaigning towards middle class consumers. Distribution?Honda followed a policy of developing the market region by region beginning with the west coast and moving eastward. Design? Honda designed the lightweight motors to match the market research results. In general, Products are updated or redesigned whenever a market threat or opportunity is perceived, prices are set at levels to achieve market share targets and will be cut if necessary, effective marketing systems are set up in all markets where serious competition is intended regardless of short term cost and finally plans and objectives look to long term payoff.Q3. To what degree was the US entry strategy thought out in advance? Honda was already th e worlds largest motorcycle producer. Honda established a US subsidiary and began its push in the market by offering very small lightweight motorcycles. Honda followed a policy of developing the market region by region beginning with the west coast and moving eastward until it established the largest dealership network in the US.