Académique Documents
Professionnel Documents
Culture Documents
➢ Company’s History
➢ Company’s Profile
➢ Head office
➢ Showcase Manufacturing Facility
➢ Sales and Distribution Network
➢ Sales performance
➢ Honda's vision and role
➢ Corporate Structure
➢ Corporate Governance
➢ The Indian Automobile Market
➢ Business Environment
➢ Competitive Analysis
➢ Consumer Analysis
➢ Core Competencies
➢ SWOT Analysis
➢ Strategies
➢ Bibliography
History of Company
The history of the Honda Motor Company began with the vision
of one man – Soichiro Honda. His dream was personal mobility
for everyone. Soichiro Honda founded the Honda Motor
Company in 1948. In the same year, he designed and
engineered the first product of this company - a 50 cc
motorized bike on a bicycle frame - in his small shed at
Hamamatsu. Today, Honda is a global company with a global
viewpoint that is reflected in a solid commitment to local
markets and economies.
Company Profile
Head Office
It is expected that by 2030, the Indian car market will be the 3rd largest
car market across the globe. The main encouraging factors for the success
story of the car market in India are the increase in the opportunity for new
investments, the rise in the GDP rate, the growing per capita income,
massive population, and high ownership capacity. The liberalization policies
followed by the Indian government had been inviting foreign players to
participate in the car market in India. The recent trend within the new
generation to get work in the software based sector has led to the rise in
the income level and change in the lifestyle significantly, which has further
led to the increase in the demand for luxurious cars among them.
The car Market in India is crowded with all varieties of car models like the
small cars, mid-size cars, luxury cars, super luxury cars, and sports utility
vehicles. Initially the most popular car model dominating the Car Market in
India was the Ambassador, which however today gave way to numerous
new models like Hyundai, Honda, Mercedes-Benz, BMW, Bentley and many
others. Moreover, there are many other models of cars in the pipeline, to
be launched in the car market in India. Some of the leading brands
dominating the car market in India at present are Hindustan Motors, Reva
Electric Car Co., Fiat India Private Ltd., Daimler Chrysler India Private Ltd,
Ford India Ltd., Honda Siel Cars India Ltd., General Motors India, Hyundai
Motors India Ltd., Skoda Auto India Private Ltd., and Toyota Kirloskar Motor
Ltd. Since the demand for foreign cars are increasing with time, big brands
like Mercedes Benz, Volkswagen, Aston Martin, Ferrari, and Rolls-Royce
have long since made a foray into the Indian car market.
Although the Indian automobile industry has come a long way since the
deregulation in 1993, India does not rank well among its global peers in
many respects, viz., the contribution of the sector to industrial output,
number of cars per person, employment by the sector as a percentage of
industrial employment, number of months' income required to purchase a
car, and penetration of cars.
India is far behind from other countries with just 6.9 cars per 100 persons,
while Unites States has 76.9 cars on per 100 persons. Among developing
countries, Russia also stands ahead than India and China with 16.3 cars
per 100 persons.
Sales Performance
Corporate Structure
Automobile Operations
Product Operations
Purchasing Operations
CORPORATE GOVERNANCE
HSCI practices high standards of Corporate Governance and
there is a strong emphasis on transparency in its transactions
and Code of Conduct for all Associates. It believes very strongly
in the practice a unique work culture, which has a sound
foundation right from the time of inception of the company .The
management style, is founded on the principle of “Respect for
the individuals.”
TECHNOLOGICAL ENVIRONMENT
– Opening up of Indian market to foreign investors
has created a rush of new technologies. There is a thirst to
grasp more and more of latest technologies by the car
manufactures. However, the R&D expenditure of HONDA
has reaped good benefits, making the cars best among its
league. (+) and also coming up with newer and newer
models.
POITICAL ENVIRONMENT
– Open Economy: India has recently opened up the
economy and hence there is tremendous scope in terms of
growth here. As one of the emerging markets in Asia, it
has a lot of potential as the earning power of people
increases.
SWOT Analysis
Strength
Weakness
Opportunities
Threats
• If continuous innovations are not done, then competitors
will beat you with
• last year’s technology.
• Strict environmental Laws like EURO III Norms.
• Liberal Government Policies.
➢ FUNTIONAL & COOPERATIVE STRATEGIES
Till date, HSCI’S strategy has been to create value through
expanded sales via innovation in research and manufacturing.
Instead of having one large manufacturing plant, it uses an
idea of “manufacturing products where they are sold”. In this
way manufacture is increased in areas where sales increase.
This practice has led to over one hundred manufacturing plants
in over thirty countries, a process they call “globalization”.
They also are guided by a commitment to the future. This ideal
is reflected in several ways. Low emissions vehicles are one
example, anther are manufacturing plants that are focused on
environmental friendliness as well as efficiency and quality.
Till now the focus is on the premium segment in India for the
time being as it was bringing in the required volumes. They can
focus on C and D segment cars where they have a market
share of 14%.
The result of all this is that IT at Honda Siel has helped the
company cut costs and save on manpower generation of
different IT projects easier.
MARKETING STRATEGY
The company can opt for penetration pricing in order to capture
a larger market share. This can be done through rapid
technological development and new innovations in which they
can develop new products which are low priced and through
this it can cater to the needs of other segments also.
OPERATIONAL STRATEGY
In this they can go for modular manufacturing strategy i.e.
preassembled subassemblies. The parts of the car can be made
and stored in different units. As per the order of the customer a
group of workers can assemble the cars at a high speed mode
and can make the car available within the short period of time.
This will enable the company to follow and enhance Just in
Time approach.
What is bought?
➢ Car, convenience, comfort, luxury, peace of mind
How is it bought?
➢ When the need arises: When they need to
travel, additional car for the family as the luxury
item or as a status symbol. There is a growing
trend among the customers to posses the latest
gadgets.
CORE COMPETENCIES:
Bibliography
1. www.hondamotors.com
2. http://world.honda.com/HondaSielCarsIndia/
3. www.google.com
Books Referred