Preview

Honda's Entry into the U.S. Motorcycle Market

Satisfactory Essays
Open Document
Open Document
302 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Honda's Entry into the U.S. Motorcycle Market
Question 1: What are the key differences between these two accounts of Honda’s entry into the US motorcycle market?

The Boston Consulting (BCG) Report suggested that Honda entered the US motorcycle market with the plan approach. Advanced planning which was tailor-made for the US market was prepared before entering the country. On the other hand, Richard Pascale's report, which consists of an interview with the top management of Honda at that time, showed that Honda entered the US market successfully with their experience in the Japanese market, i.e. the emergent approach. The success was not brought by localized planning on the entry.

Question 2: To what extent was Honda’s apparent strategy deliberate and/or emergent?

As observed from Honda’s key successful area, it can be found that the success came from chance to a larger extent and not closely related to its well-planning. Honda had a detailed plan on the entry to the US market with some clear targets on achievement. However, the plan was affected by local competitors, market development and the Japanese government, which hindered them from achieving their targets. As a result, we may conclude that emergent strategy contributed to a larger extent to Honda’s entry.

Question 3: What key lessons may be learned from any comparison of these two quite different accounts of the same strategic decision?

From the case study, we may observe that strategy is an evolutionary process. Strategy cannot be implemented successfully only with well-planning. It also needs interactivity with the reality. We plan & establish our strategy with cognition only sometimes. However, it is more appropriate to consider the environmental impact and make interactive adjustment from time to time. We should also monitor the environmental change closely to make respective adjustments at the right

You May Also Find These Documents Helpful

  • Good Essays

    British airways

    • 3361 Words
    • 14 Pages

    Any business has challenges from different elements like globalisation, information and technology, socio and cultural factors, political factors and so on. To meet these challenges a clear strategy is very crucial for any organization. A strategy is a clear vision of what the organisation will be based on a sustainable competitive advantage. Actually, strategy is a road map for future directions and scope. It is a long range plan for five years and more. It develops mission, objective and goals for an organisation. To develop an effective strategy any organisation must set an account with different factors. Environmental analysis, present analysis, strength, weakness, opportunities and so on are the factor through which a strategy can be developed.…

    • 3361 Words
    • 14 Pages
    Good Essays
  • Good Essays

    So here is the strategic management and the environmental analysis will take a very important place to avoid all these issues in the future as long term strategy and to solve all the problems they faced by understanding their external and internal environmental, after using all the analyzing theories ,studies and factors.…

    • 3192 Words
    • 13 Pages
    Good Essays
  • Good Essays

    Harley Davidson and Honda are two different manufacturers which stand out for producing motorcycles that have been used extensively for long distance rides but they have lots of differences. Comfort should be a persuading factor for singling out the kind of motorcycle/bike to invest in and ride when taking long trips. Harley bikes are commonly ridden in biker rallies, they have a reputation for being sturdy machines and well-built. The price of a Harley is a lot more than the price of a Honda motorcycle. The buyer is paying for the name Harley Davidson within itself.…

    • 758 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Strategy Formulation is very important to an organization, helps management prepare for the future of the organization in developing strategies. Strategy formulation is the creation of, "plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses" (Wheelen & Hunger, 2008, p. 12).…

    • 563 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Motorcycle and Honda

    • 575 Words
    • 3 Pages

    Honda had showed a great way to invest in the Indian market as in they choose to generate a new model in vehicle aspect. During that time, Honda arrived at the right time because the country is under low vehicle-penetration rate and the country expects vehicle production will increase by 9% annually to 2011. Before Honda starts its business over the country, they choose Hero as their business partner because Honda realised the potential by finding synergies between the two firms which is Honda and Hero. Both combine as a partnership and invented a motorcycle. Other than that, Honda utilise the experience and market knowledge to understand the country needs and produce according to their demand because selling motorcycle in India is extremely profitable business. After succeed two-wheeler motor vehicle manufacturer in the world, Honda continue to take opportunity to establish another Honda giant, Honda Siel Cars India Ltd (HSCL). Then they enrich Indian users lifestyle by forming Honda R&D (India) (HRID) Pty Ltd. Thus, Honda had adapted the country’s lifestyle which helps them to achieve the demand of people in India.…

    • 575 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In 1903, a legendary motorcycle company was formed when William S. Harley and the Davidson brothers, William D., Arthur and Walter, handcrafted their first three motorcycles. In 1909, Harley-Davidson introduced the first V-Twin engine, which is still the company standard to this day. From 1917-1918, the company supplied 20,000 motorcycles for the military during World War I, and during this time major design advancements of motorcycles were made with Harley-Davidson as the leader. By the end of the Great Depression, only Harley-Davidson and Indian (Hendee Manufacturing) were the sole U.S. motorcycle manufactures that survived through the 1930's. Throughout the 1940's, Harley-Davidson supplied more that 90,000 motorcycles to the military for World War II, added additional facilities and started to decertify by selling apparel – the classic black leather jacket. After Indian closed in 1953, Harley-Davison was the sole American motorcycle manufacture for the next 46 years. Private ownership ended in 1965 whit their Initial Public Offering and four years later, the company merged with American Machine and Foundry (AMF).…

    • 3037 Words
    • 13 Pages
    Good Essays
  • Satisfactory Essays

    9. Your final analysis document should be 8-10 pages, double spaced with one-inch margins, and contain appropriate headings and subheadings that form an outline of the analysis along with citations for external information used in your analysis. Your analysis should include a table of contents with page numbers. Additionally, you must use proper citations for…

    • 332 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    1) One barrier to entry into the U.S. market was the reputation of Japanese cars as low quality cars…

    • 2595 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    • Complementarity of lectures – readings • Individual case participation • Each lecture, one or several cases from the book will be expanded to put the theory into practice • Importance of research articles…

    • 1194 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The case describes Honda’s move into the US motorcycle market in the 1960's. Honda's strategy was directed towards high volumes per model, providing high productivity, and low costs. Honda succeeded in the US by introducing a new product (small motorcycles, 50cc) that expanded the motorcycle market in the US through price generic competitive strategy. Honda was prepared with capacity, capital and technical capability to enter the US market.…

    • 609 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?…

    • 816 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    SUCCESS STORY OF HONDA

    • 1432 Words
    • 5 Pages

    In 1937 Honda began producing piston rings for small engines, which led to manufacturing small engines to be used in motorcycles, and then in 1948 he started producing complete motorcycles as president of the Honda Motor Company. Honda turned the company into a billion-dollar multinational that produced the best-selling motorcycles in the world. Honda's excellent engineering and clever marketing resulted in Honda motorcycles out-selling Triumphand Harley-Davidson in their respective home markets. In 1959 Honda Motorcycles opened its first dealership in the United States.…

    • 1432 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    • Competition: Entry to market by Japanese carmakers who have established dealer networks in the U.S.…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    At the same toiken, they have increased service levels, customer loyalty programs, and have started addressing niche-markets ("Just 4her")…

    • 7212 Words
    • 29 Pages
    Good Essays
  • Powerful Essays

    c) Honda’s FDI may have been part of an overall corporate strategy designed to bolster their competitive position vis-à-vis their domestic rivals such as Toyota…

    • 2672 Words
    • 11 Pages
    Powerful Essays