FMS Delhi Jitjyoti Pegu

Soichiro Honda started Honda Motor Company in 1948 The third largest automaker in Japan World's largest motorcycle manufacturer Worlds largest manufacturer of IC engines Sixth largest automobile manufacturer Unique company with a variety of products and a wide- ranging customer base Hondas philosophy

The

Joy of buying the joy of selling the joy of producing

Exploring region by region New Global Manufacturing System

Leading innovation in the manufacturing area Double in-house resource efficiency

Digital Development Technology

Information Technology (IT) development system for automobile product, Digital Manufacturing Circle(DMC) IT system works as a global database network from design through production engineering Reduce the number of costly prototype models
Maximizing efficiency of new internal combustion technology Developing and expanding the new hybrid system Shifting to fuel cell powered vehicles

The Environmental Challenge

 Increased

rivalry within Japan which was forcing all major automobile manufacturers to look for alternate manufacturing facilities Honda had the capacity, capital and technical ability(in 1959 already the largest producer of bikes) Before Honda entered the US market, motorcycles were available for the police, army etc Market opportunity in lower cc bike segment

BCG Report [1975]

Honda's cost advantage, successful exploitation of scale and learning "segment retreat" response of British and American competitors Pascale's interviewed six Honda executives Having a better product, flowing from design skills did not "target" specific market segments in the U.S., but rather showed an ability to experiment, to learn quickly from mistakes, to rapidly revise design problems, and thereby to discover opportunities. couples Honda's success in motorcycles with its successful entry into the U.S. automobile market ability to go from "nowhere" to prominence despite the earlier entry of very efficient competitors like Toyota and Nissan Prahalad and Hamel have given the names "intent" and "stretch" to the processes which underlay this success "core competence" to the central skills and abilities that Honda built upon

Pascale [1984]

Prahalad & Hamel [1989, 1990]

 High

discretionary and disposable incomes Licensing as an entry method into foreign market Economies of scale in domestic market helped Honda to penetrate into the highly competitive US market where cost played an important role Modelled towards

High volumes per model, Providing high productivity Low cost

 Key

interventions

Fuel-efficient, low Emitting cars Low-carbon fuels

Near-Zero

Emission Vehicles

BMW 325i, Ford Fusion, Honda Accord, Honda Civic HEV

Major

expansion of sales within each of its three product lines

accelerated

innovation throughout the company manufacturing research & development

 http://www.oppapers.com/essays/Honda-

Case/56957 http://www.webbooks.com/eLibrary/ON/B0/B58/031MB58.ht ml Honda [A]. (1989). Boston: Harvard Business School, Case 384049 Honda [B]. (1989). Boston: Harvard Business School, Case 384050 http://www.anderson.ucla.edu/faculty/dick. rumelt/Docs/Papers/HONDA.pdf

Thank You