Essay about Honda

1820 WordsMay 3, 20158 Pages
1. How does each of the two perspectives explain Honda’s success in the US? Case A explains from the perspective of the writers of the BCG study. It concludes five reasons for Honda’s success in the US. Firstly, Honda has a deliberate strategy with a clear goal that to achieve a big market share in the American market. It is said that Honda’s primary objectives are keeping the sales volume rather than short-term profitability. The essence of this strategy is to make the sales volume grows faster than competitors. Therefore, Honda could increase his market share. Besides, Honda set their price for his market share target. They may lower the price to achieve the target if they need to do so. Secondly, Honda has a comprehensive sales plan.…show more content…
Therefore, they provide the motorcycle has doubled horsepower and halved weight, which was not expensive and easier to control, especially for women. This makes Honda success in the Japanese motorcycle industry. The success in the US seems unexpected with luck. It has no strategy when it entered the US market, and became successful by solving a lot of problems including Firstly, Honda has no strategy for entering the US market. The idea of leadership is to see what they could do in America. The corporate culture that “success against all odds” encourages Honda to challenge itself (Christiansen & Pascale, 2011). They do not discuss the profit or deadlines for breakeven. They are brave and just try to do something in America. Secondly, although the market is vast, untapped, and affluent, there are many problems in the American market, which are distribution, service quality and the potential of motorcycles. There are only 3,000 motorcycle dealers in the US, and two thirds of them are open on nights and weekends (Christiansen & Pascale, 2011). Besides, the inventory and the service are poor. Moreover, it is hard to estimate the motorcycles sales in the US because everyone drives an automobile. Honda chooses to sell four models of motorcycles at the beginning, although they know the products are not superior enough. They choose to start from Los

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