The development proposal that I have chosen for my company i.e. “Honda motors Japan” consists of a new product in the existing portfolio of products for the company in India. The product is the diesel engine version of their car called “Honda City”. Currently the company only sells the petrol engine version of the car in India. Moreover, due to the rise in petrol prices in India, the buying behaviour of the target market has shifted towards cars that use a more cost efficient fuel i.e. Diesel. Furthermore, the sales of the company in the Indian car market have decreased drastically in the fiscal year 2011-12 by 8.47% (NDTV PROFIT). So , the proposal provides a good opportunity for the company to regain the market share in the segment that the company once used to have because the name and brand image of the company is already there in the country, it just needs a new development to keep up with the changing market. This will help reshape the company and will significantly affect its future prospects. JUSTIFICATION
Delusional to Nimble
The company currently is delusional and is denying the fact that the automotive sector in India has already shifted towards the diesel engines as they are the lone company in India that sell cars with petrol engines only. So, this proposal can help put them in a transitional phase from delusional to nimble. This will kick start their growth and help them develop new strategies and it will also help them reorient the existing strategies.
Having the Right Agenda
The current agenda of the company is more focused towards increasing the sales of the current product portfolio (petrol engines) , they need to realize that the market has already shifted and they are lagging behind their competitors which is evident from the decrease in their recent sales and also decrease in their market share in the current segment. With the help of this proposal they can come on the right track and try to compete with their competitors as...