Preview

Honda Competetive Advantage

Good Essays
Open Document
Open Document
787 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Honda Competetive Advantage
.

Competitive Advantages of Honda.
A review
Subhrasankha Bhattacharjee
Bridge School of Management

Author Note
This paper was prepared for OBL case study assignment.
Abstract
A firm with a competitive advantage may experience higher profits than the average profit in the industry while competing for the same customers. There are several factors that can contribute to a firm 's ability to be competitive in its industry. Building blocks of a competitive advantage include efficiency, quality, innovation, and responsiveness to customers.
This Literature reviews the Honda for its sustained competitive advantages. For a general introduction of the company:
Company background
Name
Honda Motor Company, Ltd.
Industries served
Automotive, Aviation, Telematics
Geographic areas served
Worldwide
Headquarters
Japan
Current CEO
Takanobu Ito
Revenue
¥7.948 trillion (2012)
Profit
¥211.48 billion (2012)
Employees
179,060 (2012)
Main Competitors
Daimler AG, Ford Motor Company, General Motors Company, Nissan Motor, Toyota Motor Corporation, Suzuki Motor Corporation, Volkswagen AG.

Competitive Advantages of Honda.
Honda is now one of the top choices for many buyers. As a brand, it continues to meet and exceed the buyers’ expectations every year. Honda has many distinctive competencies based on its resource and capabilities that allow it to have a competitive advantage in the auto manufacturing industry.
Three areas that give Honda a competitive advantage in the auto industry include Honda 's engineering and design, research and development, and brand equity.
The Major Advantages of Honda, as many survey results have supported, are:
Reliability: For both processes and parts, Honda has a remarkable reputation of Quality. This reputation has been consistently maintained by Honda and is well supported by the Consumer Reports.

Fuel Efficiency: Honda is an industrial leader in terms of Fuel Efficiency and this has propelled it to


References: 1. http://dspace.lib.niigata-u.ac.jp:8080/dspace/bitstream/10191/983/1/18_0179.pdf 2. http://www.slideshare.net/erikabacon/Honda 3. http://www.slideshare.net/rhysrj/business-models-resources-and-capabilities 4. world.honda.com 5. www.studymode.com/essays
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Integration Project of Analyst Preparation: Honda Motor Co. Ltd
    • 3054 Words
    • 13 Pages

    Integration Project of Analyst Preparation: Honda Motor Co. Ltd

    Oil prices have recently been rising and will probably continue to rise as the world’s oil sources are depleted. This could mean that there will be a fall in demand for regular fuel cars and a rise in demand for smaller more efficient cars. Honda is producing hybrid technology which will seem more attractive due to higher oil prices. Also, as consumer confidence returns to the US economy, fuel efficient SUV’s are also an alternative to consumers who aren’t comfortable driving smaller cars on America’s highways. As Honda adjusts its production to a more fuel efficient or hybrid/electric technology, they will have the potential to see increased revenue.…

    • 3054 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Honda Financial Ratios Analysis
    • 1822 Words
    • 8 Pages

    Honda Financial Ratios Analysis

    Honda is considered to be one of the best auto makers in the world; its customer base continues to grow throughout the years. Honda also has profit margins constantly higher than its closest competitor Toyota Motors.…

    • 1822 Words
    • 8 Pages
    Good Essays
    Read More
  • Powerful Essays

    Honda vs Toyota
    • 978 Words
    • 4 Pages

    Honda vs Toyota

    Honda of America Mfg. has been committed to building quality products for their customers and quality communities where their associates live and work. Their Fundamental Beliefs are Respect for the Individual and The Three Joys. The three joys are Joy of Buying, The Joy of Selling and The Joy of Creating which express Honda's belief and desire that each person working in, or coming into contact with the company, directly or through or products, should share a sense of joy through that experience. Hondas company principle is "Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price, for worldwide customer satisfaction." Honda Management Policies are Proceed always with ambition and youthfulness, Respect sound theory, develop fresh ideas and make the most effective use of time. Also Enjoy your work, and encourage open communications, Strive constantly for a harmonious flow of work, Be ever mindful of the value of research and endeavor.…

    • 978 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    The Honda Element
    • 331 Words
    • 2 Pages

    The Honda Element

    Honda which is a professional product platform is an extremely famous Japanese automaker. Honda is also the largest motorcycle manufacturers of all over the world. Moreover, vehicle production and scale are among the largest car manufacturers of the world. Nowadays, Honda is a multinational automobile, motorcycle production and sales group. In addition, Honda in the United States is representative of the popular. According to the article introduce that the technology, publicity, and ideas of Honda, the Element, the new light truck, that applied its expertise in product platforms. Furthermore, Honda's mode of operation is very flexible that embodied in the light truck, Element. Many kinds of their cars of Honda were popular with most people. However, no young men appealed them. Therefore, the product team of Honda was compelling new design. They made a clear positioning statement that the Element is for the single individual with freely and uncommon lifestyle. Moreover, the top management of Honda support that four design themes which were adaptability, authenticity, functionality, and attitude were identified for the Element. The Element success is also in their particular advertising. They broke the traditional ideas of advertisement to show their more characteristic, design, and technology to give more tangible benefits for the customers. Because they had four subsystems were used by exterior, interior, suspension, and power train, the Element was a unique design. For example, the exterior of Element, the unique side doors, clamshell tailgate, extra durability, saving oil, good engine be popular with groups of young men and energetic men. The product team of Honda not only did enough market research and obtaining feedback but also used technology in a technical reformation on the platform. Therefore, they realized success of the new product. The particular advertising, using technology in a technical reformation on the platform, and giving…

    • 331 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Honda Supply Chain
    • 3472 Words
    • 14 Pages

    Honda Supply Chain

    Honda is one of the world’s largest motorcycle manufacturers and of the leaders in the automakers industry. It was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It’s headquarter is in Tokyo, Japan and it serves worldwide. Honda has 492 subsidiaries and affiliates accounted under its equity. The company develops, manufactures, and markets a wide range of products such as: automobiles, motorcycles, scooters, ATV’s, electrical generators, water pumps, lawn and garden equipments, robotics, jets, jet engines, and thin-film solar cells. In 2001, Honda became the second-largest Japanese manufacturer and in 2008, it became the fourth largest automobile manufacturer in the United States. Honda’s major products are motorcycles, automobiles, and power products. The company uses “The Three Joys” principle, which is expressed as The Joy of Buying, The Joy of Selling, and The Joy of Creating. Honda’s global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. The company’s most popular cars are the Civic and the Accord, as they were in the top five list of sales for the last few years. (world.honda.com )…

    • 3472 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Honda Effect
    • 1614 Words
    • 7 Pages

    The Honda Effect

    According to the two reports, BCG and Pascale, there are seven differences in the way Honda entered the US motorcycle market, the seven differences are tabulated below:…

    • 1614 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Toyota Competitive Strategies
    • 1185 Words
    • 5 Pages

    Toyota Competitive Strategies

    * Having a competitive advantage is necessary for a firm to compete in the market…

    • 1185 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    31 Explain How Products Are Developed
    • 402 Words
    • 2 Pages

    31 Explain How Products Are Developed

    The first appearance of Honda in Vietnam is in 1996, until now has been through 18 years and they have always been one of the forefront in their industry. (Honda, 2014) But now, Vietnam’s market has Yamaha, the biggest rival of Honda and the competition between both will continue for a long time in the future. Consequently, Honda has to use and combine an ingenious of design, advertising, marketing, and corporate culture. It will help create brand attributes in the minds of the people and that this will bring benefits in the business. They have to identify their…

    • 402 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Honda Quality
    • 2754 Words
    • 12 Pages

    Honda Quality

    “We have to aim for 120% product quality. If 99% of the products we make are perfect, that would seem like a pretty good record. However, the customers who become the owners of the remaining 1% will surely consider their products 100% defective. It is unacceptable that even one customer in a thousand–even one customer in ten thousand–should receive a defective product. That’s why we have to aim for 120%.” When founder Soichiro Honda said this he defined the company’s fundamental approach to quality: what it means to strive to be a company society wants to exist. Determined to meet or exceed the expectations of customers, Honda is taking new initiatives to reach ever-higher product quality standards. That is who we are. To strengthen customer trust by offering products founded in safety and offering a new level of outstanding quality, Honda has created a quality cycle that continuously enhances quality at every stage: design, development, production, sales and after-sales service.…

    • 2754 Words
    • 12 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Honda Marketing Stratergy
    • 282 Words
    • 2 Pages

    Honda Marketing Stratergy

    Thanks to the success of its joint venture with Hero Group and KEL, 'Honda' was already a household name in India. Hence, rather than putting major efforts into brand building, HMSI's marketing strategy emphasized on offering innovative products at competitive prices, novel promotional campaigns and developing an extensive distribution network...…

    • 282 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Centralization and Decentralization of Decision Making in Ptcl
    • 9364 Words
    • 38 Pages

    Centralization and Decentralization of Decision Making in Ptcl

    Honda is one of the best as well as a leading company in the market, which is producing well with the help of all the latest and innovative technologies. Apart from automobile, Honda is one of the best and the largest producer of engine. Honda was the one, which compete with Nissan and achieved the highest productivity. Honda was the first Japanese automobile-based manufacturer, which produced the luxury-based brand. This company is thus working well and generating effective outcomes. Apart from this, numerous threats as well as weaknesses are there which plays an important role in weakening this company. Therefore, in order to analyze the weak areas and to…

    • 9364 Words
    • 38 Pages
    Good Essays
    Read More
  • Powerful Essays

    Tqm of Honda
    • 1710 Words
    • 7 Pages

    Tqm of Honda

    The Honda story begins in 1948 when they began by producing an auxiliary engine equipped bicycle. From those humble beginnings Honda has grown to become one of the world’s automotive giants rivalled only by Toyota in terms of global profitability. I visited their local showroom as part of research for this assignment to see if I could discover the secret of their success. A tall order it must be admitted but having already had experience of the management approaches of Ford, Toyota it was the differences in approach that might be interesting.…

    • 1710 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Honda's Move into the US Motorcycle Market in 1960s: A Case Study
    • 609 Words
    • 3 Pages

    Honda's Move into the US Motorcycle Market in 1960s: A Case Study

    The case describes Honda’s move into the US motorcycle market in the 1960's. Honda's strategy was directed towards high volumes per model, providing high productivity, and low costs. Honda succeeded in the US by introducing a new product (small motorcycles, 50cc) that expanded the motorcycle market in the US through price generic competitive strategy. Honda was prepared with capacity, capital and technical capability to enter the US market.…

    • 609 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Honda Malaysia
    • 1192 Words
    • 5 Pages

    Honda Malaysia

    Honda Motor with strong brand image along with unique product differentiation strategy has been able to create demand for its products and the sales can increase through entire value chain (Hero Honda Motors Ltd 2008). With this strong image, Honda Company can use better technology to create different products compared to their competitors. For example, Honda manufactures hybrid cars which are fuel efficiency, do not emit much carbon dioxide, uses environmental friendly material and the price of hybrid cars are affordable. This is Honda Company’s strength or competitive advantage towards their competitors. Furthermore, Honda Company has the resources and capabilities to create better design or unique product to satisfy customers with acceptable price (win-win situation).…

    • 1192 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Competitive Advantage
    • 1168 Words
    • 5 Pages

    Competitive Advantage

    Companies all seek a competitive advantage, as that will give them the opportunity to sustain profits that exceeds the average in their industry. The three major competitive advantages are differentiation, cost and response. Companies can therefore either gain a competitive advantage by offering a unique product differentiation, by offering similar products at a lower cost or by offering products at a time and place where the customer are in need of the product.…

    • 1168 Words
    • 5 Pages
    Good Essays
    Read More

Related Topics