Reconciling Management Dichotomies at Honda Motors
4936 Words20 Pages
Author: josphat waititu
Instructor: A B W Wachira
Honda Motor Company is a Japanese manufacturing company primarily involved in the manufacture of motor cycles and motor vehicles. It is currently the world’s leading motor cycle manufacturer in the world, a position it has held since 1959 and the world’s sixth largest vehicle manufacturer in terms of volume; being Japan’s second largest vehicle manufacturer and the fourth largest in America. Some of its other products include power products and engines. The firm also produces lawn mowers, solar panels as well as aircraft and robots.
Honda is a publicly traded company listed on both the Tokyo and New York stock exchange…show more content… Honda began its international sales in 1959.
After realizing the potential of the international market with a keen interest in the American market. The company officials sought to establish Honda presence in the US market but due to poor reception from American dealerships, negative image about the Japanese culture among Americans and a widely held belief that American goods were superior to Japanese, the company struggled in its first years. This was compounded by the fact that it had to establish its own distribution channel, however, the turning point for Honda’s fortunes in America changed for the better due to the success of its founder in the racing circuit and after he won the race of isle of man in the early ‘60’s. An extensive advertising campaign and winning manufacturer’s award in 1962. Soon AHMC was dominating the American market with a 62% market share. In the late ‘50’s and early ‘60’s Honda motor company ltd established international subsidiaries in Europe which included sales and manufacturing subsidiaries based in Germany and Belgium respectively. The firm also ventured in the production of motor vehicles after 1964 with an emphasis on sporty vehicles and light weight trucks, but its real production of motor vehicles did not start until the manufacture of the Honda civic in 1972. Production rose to hit 1,000,000 in sales within four years, which was followed up by the Honda accord which was equally successful.
Within 25 years