Honda Case

Topics: Strategic management, Management, Business Pages: 3 (864 words) Published: May 6, 2005
International Strategic Management
Case Study Assignment No. 1

Strategy is usually related and sometimes confused by people with planning. But as time course shows in the study of companies, there are different approaches of how a company can develop its strategy. Johnson, and Shcoles, in their book "Exploring Corporate Strategy" had studied the different ways that companies develop their strategy. The authors had formulated and structured three general ways how companies build it, there are: the design, experience and ideas lenses. "Exploring Corporate Strategy" literature explains that these are the main streams how people perceive that strategies are developed, but these streams are not exclusive but inclusive and can be combined to develop each company's unique strategy.

A good example of the former it's the incursion of Honda to the US motorcycle market in the 1960's, studied by different approaches as so as external and internal point of view. For Boston Consulting Group and Harvard Business School, it was a more design lens approach of how Honda incursion in the US market. They state that Honda's strategy was directed towards high volumes per model, providing high productivity, and low costs. Their main overview highlights that Honda succeeded in US by introducing a new product (small motorcycles) that expanded the motorcycle market in the US through price generic competitive strategy. They underline that in 1959, Honda was already the largest motorcycle producer in the world. That suggests that Honda was prepared with capacity, capital and technical capability to enter the US market.

However through the US Honda launchers point of view their incursion was not a matter of those issues, neither a designer strategy approach. They stated "In truth, we had no strategy other than the idea of seeing if we could sell anything in the US", so from their lens, the strategy was to explore a different environment and find a niche to position the company. By...
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