Secret of Honda's Success*

            


Details


Mini Case Code : CLIM036
Publication date : 2005
Subject : International Marketing
Industry : Automobiles
Length : 04 Pages
Price : Rs. 100

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Key words:

Honda Motors Co. Ltd (Honda), automobile companies, competitive cost position, The Super Cub, ad campaign, bikes industry, bike manufacturers, car companies, innovations, economies of scale, motorcycles segment, core competence, global leadership position

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract:
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The spotlight in this caselet is on how Honda Motors Co. Ltd., one of the leading automobile companies in the world, achieved success by offering superior quality products to its customers. The caselet also focuses on the strategies that the company adopted to establish and get a foothold in the American automobile market. It gives the views of various analysts like BCG, Pascale, and Prahalad and Hamel on Honda's success.

Issues:

Strategies that have made Honda a leading automobile company
Strategies that Honda adopted to attract American consumers
Analysis of Honda's success strategies

Introduction

Honda Motors Co. Ltd (Honda) is one of the most successful automobile companies in the world. The company had spread its operations in over 97 countries worldwide.

The company, named after its founder Soichiro Honda, was established in 1948 in Hamamastu, Japan. In 1950, it shifted its base to Tokyo. Initially, Honda manufactured engines that powered bicycles.

It gradually diversified into production of cars, motorcycles, scooters, ATVs (All Terrain Vehicles), trucks, marine engines, lawn and garden equipment, electrical generators, etc...

Questions for Discussion:

1. What are the different marketing strategies that Honda adopted to attract American consumers?

2. BCG, Pascale, and Prahalad and Hamel gave different views about the secret behind Honda's success. What according to you could be the reason behind the company's success?


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