Honda analysis
Content
Executive summary
Being founded in 1948 in Japan by Soichiro Honda, the organization has come a long way from motorcycle manufacturer at the early stages to manufacturing high power electronic items and technologically sound automobiles, trucks etc. in a short duration after its foundation, Honda motors became the leading automobile industry, standing not only in the top market players in its native market but leaving behind the regional competitors and competing at the global level with automobile giants like GM, Ford, Mercedes Benz and Chrysler etc. Being the first amongst the Japanese manufacturing companies to expand its operations globally, Honda faced numerous challenges in making its products acceptable by the European and American customers who were used to big, fuel consuming expensive cars. Honda played it beautifully by presenting low cost, high quality less fuel consumption vehicles. Due to fuel price increasing, Honda decides to produce more hybrid car which is highly supported by Chinese government.
Introducing The Japanese giant manufactures like Toyota, Nissan and Honda shocked their western competitors in producing low cost vehicle to enter their segments. Honda was most innovative, challenging and strategically sound amount all its Japanese counterpart and not only successfully captured the western market but also succeeded in opening its manufacturing sites both in the Europe, USA and Asia and achieved economic of scale. Today, a large portion of its sales volume (approximately 77%) is generated from these foreign markets with 46% of its manufacturing facilities present off-shore. In addition, Honda’s Chinese sales were rocket fueled in October, 2013 that had increased by 212% over the same period in 2012 reaching 75,000 units in total. Japanese car sales were heavily affected in September 2012 owing to the Diao Yu Island.
Environmental Analysis (PESTLE)
Political
China is saying that they are going to be investing
Executive summary
Being founded in 1948 in Japan by Soichiro Honda, the organization has come a long way from motorcycle manufacturer at the early stages to manufacturing high power electronic items and technologically sound automobiles, trucks etc. in a short duration after its foundation, Honda motors became the leading automobile industry, standing not only in the top market players in its native market but leaving behind the regional competitors and competing at the global level with automobile giants like GM, Ford, Mercedes Benz and Chrysler etc. Being the first amongst the Japanese manufacturing companies to expand its operations globally, Honda faced numerous challenges in making its products acceptable by the European and American customers who were used to big, fuel consuming expensive cars. Honda played it beautifully by presenting low cost, high quality less fuel consumption vehicles. Due to fuel price increasing, Honda decides to produce more hybrid car which is highly supported by Chinese government.
Introducing The Japanese giant manufactures like Toyota, Nissan and Honda shocked their western competitors in producing low cost vehicle to enter their segments. Honda was most innovative, challenging and strategically sound amount all its Japanese counterpart and not only successfully captured the western market but also succeeded in opening its manufacturing sites both in the Europe, USA and Asia and achieved economic of scale. Today, a large portion of its sales volume (approximately 77%) is generated from these foreign markets with 46% of its manufacturing facilities present off-shore. In addition, Honda’s Chinese sales were rocket fueled in October, 2013 that had increased by 212% over the same period in 2012 reaching 75,000 units in total. Japanese car sales were heavily affected in September 2012 owing to the Diao Yu Island.
Environmental Analysis (PESTLE)
Political
China is saying that they are going to be investing