Honda - Innovation Types

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Innovation Types CASE: HONDA AND HYBRID ELECTRIC VEHICLES Introduction Honda was founded in Japan in 1946 as a development in institute for motorized bicycles. Three years later the company produced its first motorcycle, and ten years onwards they had also entered the US automobile market. They are one of the biggest brands in the market today, having used a strategy of building local factories in over 30 countries, in order to adapt to local customer needs. The field of energy-efficient cars has been around for a couple of decades now. Honda has always promptly stood up for the challenge emphasizing commitment for developing environmental friendly cars such as the hybrid electric vehicles (HEV), solar, or fuel call cars. Honda…show more content…
On the contrary, fuel cell vehicles are more radical innovation since it requires significant changes in the body of the vehicle, building an entirely new fuel infrastructure and changes in consumer behavior. Moreover, it will radically affect petroleum companies and change the industry standards, at the same time providing new opportunities for battery makers. 2 Factors influencing consumer adoption rate of HEVs and proposed solutions One of the variables influencing the adoption of HEV’s by customers is their uncertainty about the future engine design and future technologies. Customers in USA as well as in Europe have a basic assumption that HEV’s are simply a temporary step between the traditional technology based on gasoline and diesel engines and the forthcoming full electric vehicles with hydrogen fuel cells. Moreover, the fact that Toyota and Honda use different engine standards might cause confusion in customers mind, hesitation on which technology to choose, and which has the future. Furthermore, the perception of HEV technology among consumers in still very limited. Customers lack the basic awareness of the HEV technology and positive environmental outcomes. The solution for this would be to invest in marketing campaigns which will increase the awareness, acceptance and diffusion of the HEV technology throughout the society. Public awareness campaigns are of great importance and consumers should be educated about the positives of HEV’s as well as
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