Honda Annual Report : Honda Motor Co

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Honda is the world’s top manufacturer of motorcycles, as well as the largest producer of internal combustion engines. The Honda Motor Co. is know for producing motorcycle, automobiles, generator, and other personal engine based products. As stated in the Annual Report from 2014 “Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction” (Honda Annual Report 2014, 2014). These strategies and company goals have allowed Honda to become a high performer in the motorcycle industry. In order for Honda Motor Co. to become a high performer in the motorcycle industry, they have followed a number of business and corporate strategies. One of…show more content…
Honda is able to do this because they have more manufacturing plants around the world, and are able to produce a product that is much cheaper than other in the industry. Since they have more manufacturing plants they are then in turn able to produce more motorcycles, which allows them to sell the motorcycle at a lower cost because they are able to minimize fix costs (Honda Annual Report, 2014). Honda developed these business strategies in order to stay as a top performer in the industry. Honda Motor Co. allows of a number of corporate strategies that all they to stay a top performer in the industry. Honda Motor company most valuable corporate strategy is related diversification; this allows the company to branch off into different markets but use common attributes that link all the business units together. Another cooperate strategy imploded is vertical integrations this allows the company to bring together two aspects of the motorcycle industry. Original Equipment Manufactured (OEM) parts business allows Honda to produce more parts them what is need for the manufacturer of their motorcycle which ill drive price own, but then sell these parts on a different distribution channel well still making a profit. Developing such corporate strategies has allowed for the company to take advantages of both related diversification and vertical integration.
Without resources and capabilities no company would be able to even be considered as a performer in their respective
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