Competitive Strategies of Honda Corporation

Only available on StudyMode
  • Download(s) : 554
  • Published : April 19, 2012
Open Document
Text Preview
HRM 3003
Strategic Management

Assignment Title: Honda Corporation
Student ID: 0808174
Submission Date: 18th Nov 2011
Tutor: Shanthi Rajan

Introduction
In the modern corporate culture the level of competition is increasing day by day. The main objective of each organization is to enhance its performance and to attain sustainable competitive advantage in relation to its competitors. Change is a constant in present corporate culture. In such changing environment having a single strategy is not enough for organizations success. To attain sustainable competitive advantage the organizations try to adopt strategies better than their competitors. Organizations strategies help them to achieve a different and unique place in market. Only formulating a strategy cannot help organizations to remain competitive. The organizations after formulating any strategy should test it whether it will be able to help them gain competitive advantage in any particular market or not. Following the same strategies may not help the organization to attain sustainable competitive advantage, as its competitors may formulate better strategy. Hence the organizations should adopt strategic change. Honda Corporation is one of the world’s largest automobiles and motorcycles manufacturer. It was founded in 1946. Since then it has managed to make a unique and distinct place in market. In this essay the Honda Corporation case study will be discussed. This essay will also include a critical evaluation of the strategies that Honda Corporation adopted and how those helped to achieve a competitive advantage in market.

Research Findings
Webster cited in Richard (1996) defined strategy as, “The large-scale planning and direction of operations”. Strategy can also be explained as a way of referring to what one did to counter a competitor’s actual or predicted moves (Steiner cited in Nikols, 2010). From a business point of view strategy can be said as a process through which the organizations are able to analyze and learn their resources and their environment. Chistensen & Donovan (2009) stated that, “ As organizations dive deeper into the undefined waters of the new economy and as traditional business models are being turned inside out, it is crucial that leaders of established and start-up companies alike understand the processes by which strategies are shaped, in order to guide their companies effectively”. This is done to learn about the opportunities that the organizations have in the market they are dealing in and regarding the products they are providing. This also assists in making decision regarding the investment of the resources which lead to achievement of the business goals. Chistensen & Donovan (2009) also stated, “Understanding the key dimensions of the process can help executives keep their hands more precisely on those levers that control how strategy gets defined and implemented, and to adjust the workings of that process as the competitive environment changes”. Honda Motor Company made a special place in market. Rumelt (1995) stated about Honda corporation that, “Like General Motors, IBM, and General Electric, this company has joined the elite club of firms that used, or have been used, as exemplars of successful business strategy”. The Honda Corporate has two basic strategies, those are “Respect for the Individual” and the second is “The Three Joys”. The “Respect for Individual” approach refers to have an equal treatment with each and every individual related to the firm and to respect their individual and unique characteristics. “The Three Joys” are referred as “The Joy of Buying”, “The Joy of Selling” and “The Joy of Creating”. Through this approach the Honda Company tries to share a sense of joy with each individual that has a concern with the it, either it be direct or indirect through the products. By applying these two approaches Honda Corporate has managed to achieve sustainable competitive advantage by creating a new...
tracking img