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    Strategic Analysis at Honda Motor Company Ltd. The Honda Company was founded by Soichiro Honda in 1946 as the Honda Technical Research Institute, focused on creating motorized bicycles. The company was incorporated on September 24, 1948 as Honda Motor Company. The first Honda car was the S500, which was introduced in 1963. In 1959, American Honda Motor Co., Inc. was opened in Los Angeles, California with just six employees. The first Honda manufactured in Marysville, Ohio on November 1, 1982. Honda is the Eight-largest automobile manufacturer in the world. Our Goal is to provide joy through our Business: The Joy of Buying: For those who buy our Products The Joy of Selling: Engage in selling our products and services The Joy of Creating: Involved in business of creating our Products Gasoline Powered Engines Honda uses its engines in automobiles, motorcycles, lawn mowers, and even portable generators. C.K.prahlad, in his original article wrote, From 1980 to 1988, Honda by 200%. Honda has moved from motorcycles to four-wheel off-road buggies. It is Honda’s core competence in engines and power trains that gives it a distinctive advantage in car, motorcycle, lawn mower, and generator businesses. Honda produce small snow-blower engines, lawn-mower engines, car engines, truck engines, race car engines COMBINATION OF CORE COMPETENCIES LET TO CORE PRODUCT i.e ENGINES WHICH THEY DIVERSIFIED INTO VARIOUS BUSINESS LIKE AUTOMOBILES, MOTORCYCLES, POWER PRODUCTS, HONDA JETS AND even ROBOTICS. 1. Efficiency factor - Improve labor productivity, labor flexibility, and capital efficiency 2. Resource Availability - Quality manpower availability, infrastructure improvements, and raw material availability 3. Effective cost controls - Close relationship with suppliers and goods distribution channels. 4. Establishment of export markets - Growth of export markets 5. Having an extensive distribution/collection network - Goods distribution channels 6. Successful industrial relations policy - Ethical and tactical industrial relations 7. Access to the latest available and most efficient technology and techniques – The degree of investment in technological improvements and product development 8. Optimum capacity utilization - The level of plant utilization 9. Management of high quality assets portfolio - Understanding implications from Government policie Reliability Honda has a remarkable reputation of quality building practices and parts, and this is not undeserved. Honda automobiles are consistently ranked very high in terms of quality by Consumer Reports as well as a multitude of other independent consumer groups. A testament to this quality is the sheer number of older Honda vehicles still running on the roads today. Fuel Efficiency Honda also receives high marks for overall fleet fuel efficiency. This is in large part a product of Honda being an industry leader in high fuel efficiency models that propelled it to popularity during times of high gas prices. The Honda CRX HF model was one of the first cars sold on the merits of its miserly gas mileage, and even though it was released in the late '80s, its gas mileage is on par with many of today's hybrids. More recently, Honda was one of the first car companies to release a hybrid vehicle in the Honda Odyssey and continues to lead the way with a huge selection of hybrid vehicles. Value Honda is routinely cited as being one of the best "bang for the buck" car brands. Whether you're looking at their luxury line or their sports car offerings, it is often true that you get a lot for your money when you buy a Honda. Their cars routinely rank on par with more expensive counterparts in the automotive industry, according to Consumer Reports. STRENGTHS *Diversified product portfolio. Honda unlike many other automotive companies does not focus only on selling vehicles. It is the largest producer of the engines and motorcycles as well. Therefore, the company is not as susceptible

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    Strategic Analysis at Honda Motor Company Ltd. The Honda Company was founded by Soichiro Honda in 1946 as the Honda Technical Research Institute, focused on creating motorized bicycles. The company was incorporated on September 24, 1948 as Honda Motor Company. The first Honda car was the S500, which was introduced in 1963. In 1959, American Honda Motor Co., Inc. was opened in Los Angeles, California with just six employees. The first Honda manufactured in Marysville, Ohio on November 1, 1982. Honda is the Eight-largest automobile manufacturer in the world. Our Goal is to provide joy through our Business: The Joy of Buying: For those who buy our Products The Joy of Selling: Engage in selling our products and services The Joy of Creating: Involved in business of creating our Products Gasoline Powered Engines Honda uses its engines in automobiles, motorcycles, lawn mowers, and even portable generators. C.K.prahlad, in his original article wrote, From 1980 to 1988, Honda by 200%. Honda has moved from motorcycles to four-wheel off-road buggies. It is Honda’s core competence in engines and power trains that gives it a distinctive advantage in car, motorcycle, lawn mower, and generator businesses. Honda produce small snow-blower engines, lawn-mower engines, car engines, truck engines, race car engines COMBINATION OF CORE COMPETENCIES LET TO CORE PRODUCT i.e ENGINES WHICH THEY DIVERSIFIED INTO VARIOUS BUSINESS LIKE AUTOMOBILES, MOTORCYCLES, POWER PRODUCTS, HONDA JETS AND even ROBOTICS. 1. Efficiency factor - Improve labor productivity, labor flexibility, and capital efficiency 2. Resource Availability - Quality manpower availability, infrastructure improvements, and raw material availability 3. Effective cost controls - Close relationship with suppliers and goods distribution channels. 4. Establishment of export markets - Growth of export markets 5. Having an extensive distribution/collection network - Goods distribution channels 6. Successful industrial relations policy - Ethical and tactical industrial relations 7. Access to the latest available and most efficient technology and techniques – The degree of investment in technological improvements and product development 8. Optimum capacity utilization - The level of plant utilization 9. Management of high quality assets portfolio - Understanding implications from Government policie Reliability Honda has a remarkable reputation of quality building practices and parts, and this is not undeserved. Honda automobiles are consistently ranked very high in terms of quality by Consumer Reports as well as a multitude of other independent consumer groups. A testament to this quality is the sheer number of older Honda vehicles still running on the roads today. Fuel Efficiency Honda also receives high marks for overall fleet fuel efficiency. This is in large part a product of Honda being an industry leader in high fuel efficiency models that propelled it to popularity during times of high gas prices. The Honda CRX HF model was one of the first cars sold on the merits of its miserly gas mileage, and even though it was released in the late '80s, its gas mileage is on par with many of today's hybrids. More recently, Honda was one of the first car companies to release a hybrid vehicle in the Honda Odyssey and continues to lead the way with a huge selection of hybrid vehicles. Value Honda is routinely cited as being one of the best "bang for the buck" car brands. Whether you're looking at their luxury line or their sports car offerings, it is often true that you get a lot for your money when you buy a Honda. Their cars routinely rank on par with more expensive counterparts in the automotive industry, according to Consumer Reports. STRENGTHS *Diversified product portfolio. Honda unlike many other automotive companies does not focus only on selling vehicles. It is the largest producer of the engines and motorcycles as well. Therefore, the company is not as susceptible

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    1K views24 pages

    Strategic Analysis at Honda Motor Company Ltd.

    Uploaded by

    Ayush Bisht
    Strategic Analysis at Honda Motor Company Ltd. The Honda Company was founded by Soichiro Honda in 1946 as the Honda Technical Research Institute, focused on creating motorized bicycles. The company was incorporated on September 24, 1948 as Honda Motor Company. The first Honda car was the S500, which was introduced in 1963. In 1959, American Honda Motor Co., Inc. was opened in Los Angeles, California with just six employees. The first Honda manufactured in Marysville, Ohio on November 1, 1982. Honda is the Eight-largest automobile manufacturer in the world. Our Goal is to provide joy through our Business: The Joy of Buying: For those who buy our Products The Joy of Selling: Engage in selling our products and services The Joy of Creating: Involved in business of creating our Products Gasoline Powered Engines Honda uses its engines in automobiles, motorcycles, lawn mowers, and even portable generators. C.K.prahlad, in his original article wrote, From 1980 to 1988, Honda by 200%. Honda has moved from motorcycles to four-wheel off-road buggies. It is Honda’s core competence in engines and power trains that gives it a distinctive advantage in car, motorcycle, lawn mower, and generator businesses. Honda produce small snow-blower engines, lawn-mower engines, car engines, truck engines, race car engines COMBINATION OF CORE COMPETENCIES LET TO CORE PRODUCT i.e ENGINES WHICH THEY DIVERSIFIED INTO VARIOUS BUSINESS LIKE AUTOMOBILES, MOTORCYCLES, POWER PRODUCTS, HONDA JETS AND even ROBOTICS. 1. Efficiency factor - Improve labor productivity, labor flexibility, and capital efficiency 2. Resource Availability - Quality manpower availability, infrastructure improvements, and raw material availability 3. Effective cost controls - Close relationship with suppliers and goods distribution channels. 4. Establishment of export markets - Growth of export markets 5. Having an extensive distribution/collection network - Goods distribution channels 6. Successful industrial relations policy - Ethical and tactical industrial relations 7. Access to the latest available and most efficient technology and techniques – The degree of investment in technological improvements and product development 8. Optimum capacity utilization - The level of plant utilization 9. Management of high quality assets portfolio - Understanding implications from Government policie Reliability Honda has a remarkable reputation of quality building practices and parts, and this is not undeserved. Honda automobiles are consistently ranked very high in terms of quality by Consumer Reports as well as a multitude of other independent consumer groups. A testament to this quality is the sheer number of older Honda vehicles still running on the roads today. Fuel Efficiency Honda also receives high marks for overall fleet fuel efficiency. This is in large part a product of Honda being an industry leader in high fuel efficiency models that propelled it to popularity during times of high gas prices. The Honda CRX HF model was one of the first cars sold on the merits of its miserly gas mileage, and even though it was released in the late '80s, its gas mileage is on par with many of today's hybrids. More recently, Honda was one of the first car companies to release a hybrid vehicle in the Honda Odyssey and continues to lead the way with a huge selection of hybrid vehicles. Value Honda is routinely cited as being one of the best "bang for the buck" car brands. Whether you're looking at their luxury line or their sports car offerings, it is often true that you get a lot for your money when you buy a Honda. Their cars routinely rank on par with more expensive counterparts in the automotive industry, according to Consumer Reports. STRENGTHS *Diversified product portfolio. Honda unlike many other automotive companies does not focus only on selling vehicles. It is the largest producer of the engines and motorcycles as well. Therefore, the company is not as susceptible

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    © All Rights Reserved
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    of 24

    STRATEGIC

    ANALYSIS
    Honda Motor Co. Ltd.

    HISTORY
    Soichiro Honda
    1946, Honda Technical Research Institute
    September 24, 1948 Honda Motor Company
    First Honda car introduced in 1963
    Eight-largest automobile manufacturer in the world.

    MISSION STATEMENT
    "Maintaining a global viewpoint, we are dedicated to
    supplying products of the highest quality, yet at a
    reasonable price for worldwide customer satisfaction."

    BASIC PRINCIPLES
    "Respect for the individual.
    The Three Joys (buying, selling and creating)."

    Global
    Quality

    Harmony

    Mission

    Joy

    Youthfulness

    CORE COMPETENCY
    Gasoline Powered Engines
    Manufacturing capabilities
    Culture of innovation
    R&D
    Financial Resources

    KEY PERFORMANCE INDICATORS


    Market share (by region)
    First pass rate (no off line rework)
    Carbon emissions
    Number of recalls and recalled vehicles (reject ratio)
    Local content rate (Risk management towards currency
    change)
    Average gas mileage
    Number of patents applied for and obtained

    CRITICAL SUCCESS FACTORS


    1. Efficiency factor - Improve labor productivity, labor
    flexibility, and capital efficiency
    2. Resource Availability - Quality manpower availability,
    infrastructure improvements, and raw material availability
    3. Effective cost controls - Close relationship with
    suppliers and goods distribution channels.
    4. Establishment of export markets - Growth of export
    markets
    5. Having an extensive distribution/collection
    network - Goods distribution channels

    CRITICAL SUCCESS FACTORS


    6. Successful industrial relations policy - Ethical and
    tactical industrial relations
    7. Access to the latest available and most efficient
    technology and techniques The degree of
    investment in technological improvements and product
    development
    8. Optimum capacity utilization - The level of plant
    utilization
    9. Management of high quality assets portfolio Understanding implications from Government policies

    COMPETITIVE ADVANTAGE
    Reliability
    Fuel efficiency
    Value

    SWOT ANALYSIS
    Strengths
    Diversified product portfolio
    Huge investments in R&D
    Strong brand image
    Motorcycle market share in Asia
    Weaknesses
    Product recalls
    Weak position in Europe automotive market
    Decreasing sales

    SWOT ANALYSIS
    Opportunities
    Increasing fuel prices
    Positive outlook for global motorcycle industry
    Growing global demand for environmentally friendly vehicles
    Growth through acquisitions
    Threats
    Intense competition
    Decreasing fuel prices
    Rising raw material prices
    Natural disasters
    Strong yen

    REFERENCES
    http://retailindustry.about.com /
    http://www.quickmba.com/strategy/core-competencies /
    https://hbr.org/1990/05/the-core-competence-of-the-corporation
    http://www.opexcanada.com/learning/keytoprofits-corecompetencies.html
    http://
    cmap.bradercomm.net:8001/servlet/SBReadResourceServlet%3Frid%3D119
    2567393958_1337706163_15017
    http://www.ehow.com/list_5916489_competitive-advantages-honda.html
    http://
    www.ukessays.com/essays/business/the-competitive-advantage-of-honda-corp
    oration-business-essay.php
    http://www.differencebetween.com/difference-between-core-competencies-an
    d-vs-competitive-advantage
    /

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    Class 3

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    90

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