Hero Honda Demerger

Each company blindly went into negotiations assuming their senior negotiators would be their best negotiators without taking into account the differences in personalities and culture. Sakari’s lead negotiator and vice-president, Kuusisto should have mitigated these concerns with the opposing Sakari management prior to the initial meetings. If these concerns were outlined with relevant solutions, then the potential of opposition of the deal would have been lessened. Items of Disagreements by both parties Equity ownership Both Nora and Sakari agreed to an initial investment of RM5 million to form the JV but disagreed on the equity share proposed by each side (273). Sakari proposed a 49 -51 percent split between itself and Nora to control the JV, however Nora countered with a 70-30 split between itself and Sakari based on the historical foreign equity regulation set by the Malaysian government. These negotiations were taken place in 2003; approximately 5 years after the Malaysian government adopted new regulations that did not employ these percentages any longer. Despite the new regulations, Nora appeared very inflexible. Each company had significant long-term equity ownership concerns which could have been mitigated if Nora would have negotiated further. Technology transfer Sakari wanted to protect their intellectual property (IP)

The Honda Motor Company first entered the European market in the early 1960s through the sale of motorcycles. Honda’s motor vehicle sales in Europe have been relatively poor, especially in the previous five years. And Honda executives wonder why their global strategy is sputtering.

Honda has continued to embrace the changes that happen around its operations to ensure sustainability and profitability. The current global motorcycle manufacturing sector is full of competition. It, therefore, becomes crucial for every manufacturer to evaluate their strengths and weaknesses and then identify the opportunities to exploit to gain competitive advantage. Honda is Japanese based automobile company; it has numerous subsidiaries in Asia, Europe, and North America. Due to the advancements in technology, Honda will be required to make use of the latest technological trends to stay competitive. The business level strategy at Honda is in line with its enterprise and corporate strategy. The corporation also conducts Research and

The motorcycle industry is very vast and contains many different manufacturers and types. Victory needs to stay ahead of its competitors such as Harley Davidson, Kawasaki and Yamaha. The thing that

A better quality engine, more finance programs and favorable service options are all on the list of what means more to the potential consumers. Once the organization can include customers’ needs into the market plan, the next step would be to maximize any and all promotion opportunities that can be found. How will this new motorcycle be different from the products in the same industry and how should the company position it?

Honda is in class of its own. It is a brand known for the performance and the reliability of its mowers. It is

Thorr Motorcycles is a $5 billion company producing a wide range of motorcycles. In addition to producing motorcycles, the company, also have licensing programs; sell T-shirts, shoes, toys for the motorcycle. The company offer services in dealer training, dealer software packages, motorcycle rental, and rider training (University of Phoenix, 2013). The sales of high quality of motorcycles are declining. The cost of a princely motorcycle was $200 in 1901. Today, a heavyweight powerful cruisers cost $25,000 (University of Phoenix, 2013). The company must develop a marketing strategy to improve sales for Thorr Motorcycles.

Hero is a word we seen a lot these days in society.The word hero can be referring to avengers in superhero movies,firefighters in the news who saved others’ lives,or someone who helped us when we needed most.Everyone has a hero,someone they look up to,inside their mind.To me,my hero is my dad.

According to me, the motorcycle industry is very attractive. The main reason to back my claim is the level of competition in the industry. There is a very high level of completion between all the companies present in this particular segment. The main factors that drive this rivalry are different positions of different players within the industry, differences in technical know-how, different marketing campaigns, differences in core nature of the products and differences in strategies. The players in this particular industry don’t fight over price of their products, they rather compete with each other in terms quality of their products and the nature of their services to different segments of customers. Each player had its own unique strategy and nature of the product for a particular segment of customers, this tends to intensify the competition amongst companies in the industry.

Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.

However, the splendorous period of Harley-Davidson finished in 1970 when the Japanese entered the U.S. market starting with Honda. Using the Blue Ocean strategy (see appendix 5.5), Honda and other japanese companies were positioning in the market with a broad Cost Leadership Strategy (see appendix 5.3-B) trying to focus on an unexploited but potential large market. Through PESTEL (see apendix 5.4), in a political perspective a lack of government support in creating barriers to entry and in an economical point of view, fuel high prices and maintenance costs, contributed to the entrance of the japanese competitors and their inmediately success. Moreover, the social scope in which the motorcycle was considered a leisure product for rough men, was displaced by the success of Honda´s campaign: “You meet the nicest people on a Honda” and the society started to perceive the motorcycle also as a useful transportation vehicle. This fact expand the market and the demand of motorcycles began to increase rapidly (+33% per year). To conclude the PESTEL analysis, in a technological perspective, the japanese arrived to the U.S. with unique technological advances and developed efficient mass-production processes that reduced the production time and

With the rising cost of fuel, Abans decided to provide cheaper transport options for Sri Lankans by importing motorcycles and marketing them at affordable prices. In 2005, Abans Trandex Ventures was established to handle the import and distribution of Hero motorcycles from India, and Jiapeng and Toyostar from China. The major project recently involved by Abans is to offer Hero motor bikes to government employees at a lower price which could be paid in installments with the involvement of the government. Which was an great opportunity to citizens to own a motor bike who are not affordable to purchase at higher prices. Diversification has reaped rich rewards for the group and been immensely beneficial to the local population and company turnover was increased by significant amount because of this project. This company is closely directed by Mr. Behman Pestonjee as who is always concern in introducing products to meet the needs of large majority of middle class consumers and contribute toward the overall quality of life improvements in the

    Some of the company's biggest competitors are the Japanese manufacturers, Honda, Yamaha, Kawasaki, and Suzuki. When the Japanese manufacturers entered the industry they became dominated by stylish designed motorcycles at a inexpensive price. Hence, due to their management, designs, and advanced products at an affordable price, the Japanese manufactures held an competitive advantage. They also provided diverse products that allowed for them to gain knowledgeable use of economies of scale and scope in manufacturing. This allowed for them to produce new models with advanced features and lower price, gaining a larger customer base.

Harley-Davidson is a company that should use the support if its customers to grow and improve. The customers of Harley-Davidson are very loyal. Unlike its competitors, many customers have tattooed the name or logo of the company on their bodies to show their support. Therefore, Harley Davidson should really build on that and use it to their advantage. In addition, to the loyalty of the

Honda is one of the world’s largest motorcycle manufacturers and of the leaders in the automakers industry. It was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It’s headquarter is in Tokyo, Japan and it serves worldwide. Honda has 492 subsidiaries and affiliates accounted under its equity. The company develops, manufactures, and markets a wide range of products such as: automobiles, motorcycles, scooters, ATV’s, electrical generators, water pumps, lawn and garden equipments, robotics, jets, jet engines, and thin-film solar cells. In 2001, Honda became the second-largest Japanese manufacturer and in 2008, it became the fourth largest automobile manufacturer in the United States. Honda’s major products are