Preview

Issues Faced by Honda

Satisfactory Essays
Open Document
Open Document
295 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Issues Faced by Honda
The 3 issues that are faced by Honda is the conflict between Toyota. Honda is the 1st company developed hybrid not the Toyota but by stubbornly sticking to a bare-bones system, it long a go lost its leadership to its number one Japanese rival. Honda is suffering at the very moment when its two main Japanese rivals are thriving. Toyota is getting a jolt of energy from Aiko Toyoda, scion of the founding family, while the ever-energetic Carlos Ghosn has made Nissan the leader in electric cars. Which perhaps illustrates another part of Honda’s problem is Honda is lack of genius and they need to find more engineers to help them figure out the new model or engine to solve the problem.
Second the issue that faced by Honda is supply resources from other country. Honda do needs supplyment resources from other country such as Thailand, Japan and so on. Due to the Japanese earthquake and tsunami and flooding in Thailand, it had made Honda lack of resources to do their accesoory and requirement from engine. This make their enemy company such as Nissan, Toyota, BMW to have a chance to sell more cars compare to Honda. Honda do needs to wait for the supplier to give them the resources hence make the sales from honda drop.
Lastly the issue that faced by Honda is Honda lack of funds. They did not go and find other company to help them. Honda has spent months struggling with shortages of most of its products- nortably including the all-new Civic it launched earlier in the year, just before a devastating earthquake and tsunami struck Japan and seriously damaged that nation’s automative infrastructure. It will be very difficult for Honda to make the sales

You May Also Find These Documents Helpful

  • Powerful Essays

    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
  • Good Essays

    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
  • Satisfactory Essays

    Honda was successful in invading the U.S. market fundamentally because they adopted a “market philosophy”, and allowed that clear strategic approach to permeate the company’s approach to marketing, sales, production, and R&D. This was in contrast to the incumbent U.S. and British motorcycle manufacturers, who failed to recognize success of Honda’s strategy in the Japanese market, leaving open the opportunity within the U.S.…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Motorcycle and Honda

    • 575 Words
    • 3 Pages

    Honda had showed a great way to invest in the Indian market as in they choose to generate a new model in vehicle aspect. During that time, Honda arrived at the right time because the country is under low vehicle-penetration rate and the country expects vehicle production will increase by 9% annually to 2011. Before Honda starts its business over the country, they choose Hero as their business partner because Honda realised the potential by finding synergies between the two firms which is Honda and Hero. Both combine as a partnership and invented a motorcycle. Other than that, Honda utilise the experience and market knowledge to understand the country needs and produce according to their demand because selling motorcycle in India is extremely profitable business. After succeed two-wheeler motor vehicle manufacturer in the world, Honda continue to take opportunity to establish another Honda giant, Honda Siel Cars India Ltd (HSCL). Then they enrich Indian users lifestyle by forming Honda R&D (India) (HRID) Pty Ltd. Thus, Honda had adapted the country’s lifestyle which helps them to achieve the demand of people in India.…

    • 575 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Honda case

    • 640 Words
    • 2 Pages

    Honda faced many obstacles in its early days. In 1950 it was almost driven into extinction. However, the company always made a breakthrough with its new technology developments. In order to prevent such threat of extinction from happening again, Fujisawa, Honda’s partner, strongly encouraged the company to always stay on top with its technology and keep lower price to compete with so many competitors in Japan as well as the U.S.…

    • 640 Words
    • 2 Pages
    Good Essays
  • Good Essays

    According to the Honda’s export strategy of “Honda and U.S. – Japan Automotive Trade”(1997), it is clearly that Honda focuses on regional markets which contributes to developing more sales, strong research and better development. And their strategy of manufacturing the products where or near to where they are sold is the result of their being local strategy. Additionally, focus on local market benefits not only Honda but also the local government. Taking the US market as an example, on one hand, “Honda’s commitment to global trade and the positive benefits that result for U.S. jobs, suppliers, consumers and exports.” On the other hand, when the government benefits from Honda, it is easier for Honda to develop in the future. The other one is that Honda always emphasizes the competition of globalization. And during the intense competition, finding reliable suppliers to ensure and advance the quality of production is very important. Being globalization is the corollary goal if one company wants to make more benefit. And reliable suppliers are of great significance for company. This is the foundation of being on time as well as having good quality. Furthermore, Honda’s suppliers are able to be involved in the development process to give suggestion and have negotiation with Honda. In this way, Honda has access to know how to make it better and faster.…

    • 1331 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Honda concentrated on establishing and then expanding its assembly operations, while carefully probing the capabilities of domestic suppliers. Honda has established new auto manufacturing facilities in Mexico and increased exports to Central and South America . Suppliers in the car industry have very little power. In fact quite the opposite is true they are at the mercy of the manufacturer. The importance of avoiding suppliers that fix their own terms because they are the only supplier of the produce. Honda Motors has addressed this situation in rather interesting way. Honda does not have long term relationship with its suppliers. Honda does not organise its own suppliers association as most Japanese firms normally do. Interestingly Honda has investments in its suppliers and at times will directly intervene with internal activities, such as purchasing the raw materials. Its relationship with suppliers is clearly different from the traditional.…

    • 965 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Toyota Case Study

    • 1834 Words
    • 8 Pages

    At the end of 2009 and start of 2010, Toyota faced a big issue which is that 6.5 million cars have been recalled in the U.S. because of the problems of gas pedals (“Toyota's quality lapse”, 2010). Many analysts started to research why the quality issues happened to the world-leading quality car maker. As a large vehicle manufacturer in the world, Toyota had to change the strategies and some…

    • 1834 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Swot of Honda

    • 1829 Words
    • 8 Pages

    Engineering capability, Honda is synonymous with engineering excellence. The company is well known for its engineering excellence from its automobiles to robots. During 2007 they invested around $4.7 billion in research and development. The developed the world’s first humanoid robot capable of bipedal motion and the world’s first automobile engine to meet the US clean air act requirements.The company is also well known for its v-tech system and along with Toyota was the first to launch the hybrid car. The engineering capability of Honda is very strong even announcing a new brain-machine interface creating technology for manipulation robots using human brain activity.…

    • 1829 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Honda Motor Company, Ltd. is a Japanese multinational corporation primarily known as a manufacturer of automobiles and motorcycles. It was found by Mr. Soichiro Honda & Mr.Takeo Fujisawa on 24th September 1948. Its headquarter is in Minato, Tokyo.…

    • 1766 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Honda Marketing Plan

    • 3394 Words
    • 10 Pages

    Honda is Japanese based automobile company; it also has numerous subsidiaries in Asia, Europe and North America. Besides, the manufacture of motorcycles, the company also produces sports equipment, marine engines, power generators, and luxury cars called the Acura (Scott, 2012).…

    • 3394 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Honda Case

    • 612 Words
    • 3 Pages

    * Business to be stagnant since Honda is relying on its strength on doing its business overseas…

    • 612 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Honda Malaysia

    • 1192 Words
    • 5 Pages

    In this Honda analysis, we have explained about Honda internal (strengths and weaknesses) and external environment (opportunities and threats) as above. Honda is a successful automobile company in this industry. Honda can improve their strengths to compete with competitor and new entrants, Honda should implements differentiation strategy in their products and services. Differentiation strategy defines as the integrated set of actions taken to produce goods and services that customers perceive as being different in ways that are important for them (Das and Joshi, 2006). Honda can specialise their product brands, design, technology, features, dealers, and network or customers services. Furthermore, it also can earn above average returns in a specific business as customers are less sensitive to price when they are loyal to your company brand. Honda can improve their brands positioning (strengths) and increase demand for hybrid car and electric vehicles products (opportunities).…

    • 1192 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Honda Today

    • 560 Words
    • 2 Pages

    Masami Kamimura has several decisions that he must make regarding the Honda Today and its future in the current Honda lineup. In the past few years, Honda invested ~5 billion in the Today and its R&D and production. Even with 22% of the market share for the Today, its total sales were only 100,660 units for the 1987 sales. The Honda today is known for its small size and compact vehicle. It is an economy car to cater to the low-middle class families. The return on this car is marginal compared to larger more luxurious cars. It would not be beneficial to redesign this car and start from scratch.…

    • 560 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    They also established dealerships al over the country – even rural areas – . The strategy of Hero Honda Motors was to capture the market by offering a superior product at an affordable price, with excellent customer service. (Right cost)…

    • 7212 Words
    • 29 Pages
    Good Essays