Print Media Aticle
I. Overview: 1. Introduction:
With an open market and the potentiality, Vietnam is attracting lots of multinational corporations come to operate the business. By applying appropriate strategies, many of them gain noticeable success and affirm their position in this market. One of the most early and successful firms is Honda, which is victorious in building its brand name in Vietnamese customer minds. In order to have deeply understanding the reasons leading to this success of the company as a real world example and how it is related to the theories, this paper is provided. This paper will discuss the Honda’s operation in Vietnam, its remarkable strategy with motivations and challenges. 2. Business Background:
Honda Motor Company Limited is the best known automaker which is the third largest Japanese one and the world top motorcycle manufacture (Funding Universe 2000). The company took place into Vietnam in 1996 to establish Honda Vietnam by making joint venture with the capital was US$140 million between Honda (50%), Asian Honda Motors Co. Ltd and Vietnam Engineering and Agricultural Machinery Corporation (Corporate Website 1, 2009). The employees of Company were around 2,000 persons. Being the first motorcycle manufacturer in Vietnam in developing market, Honda gains many advantaged and keeps the leading position for twelve following years (Corporate Website 1, 2009). In 1997, the first product line of Company, Super Dream was launched and it was in top-ten of the products meet most trust and welcome of customers. After 1 year, in 1998, the first Honda Vietnam manufacturing was inaugurated which was located in Vinh Phuc Province, 40 km from Hanoi (Honda 2011). One year later, one new brand product for Vietnamese market was introduced which is named Future. In 2992, The Company continuously launched new model was Wave @ and exported this to Philippine. In 2006, it started to produce motors. And in 2008, the second plant in Vietnam, which was located
With an open market and the potentiality, Vietnam is attracting lots of multinational corporations come to operate the business. By applying appropriate strategies, many of them gain noticeable success and affirm their position in this market. One of the most early and successful firms is Honda, which is victorious in building its brand name in Vietnamese customer minds. In order to have deeply understanding the reasons leading to this success of the company as a real world example and how it is related to the theories, this paper is provided. This paper will discuss the Honda’s operation in Vietnam, its remarkable strategy with motivations and challenges. 2. Business Background:
Honda Motor Company Limited is the best known automaker which is the third largest Japanese one and the world top motorcycle manufacture (Funding Universe 2000). The company took place into Vietnam in 1996 to establish Honda Vietnam by making joint venture with the capital was US$140 million between Honda (50%), Asian Honda Motors Co. Ltd and Vietnam Engineering and Agricultural Machinery Corporation (Corporate Website 1, 2009). The employees of Company were around 2,000 persons. Being the first motorcycle manufacturer in Vietnam in developing market, Honda gains many advantaged and keeps the leading position for twelve following years (Corporate Website 1, 2009). In 1997, the first product line of Company, Super Dream was launched and it was in top-ten of the products meet most trust and welcome of customers. After 1 year, in 1998, the first Honda Vietnam manufacturing was inaugurated which was located in Vinh Phuc Province, 40 km from Hanoi (Honda 2011). One year later, one new brand product for Vietnamese market was introduced which is named Future. In 2992, The Company continuously launched new model was Wave @ and exported this to Philippine. In 2006, it started to produce motors. And in 2008, the second plant in Vietnam, which was located
References: * Corporate Website 1 2009, ‘The History of Honda Vietnam’, 2nd May, viewed 13 March 2011, <http://honda.com.vn/web/AboutUs_TimeLine.aspx?zoneid=92&lang=en-US>. * Funding Universe 2000, ‘Honda Motor Company Limited’, Funding Universe. * Hitt, A.M, Ireland, R.D & Hoskisson, R 2009, Strategic management: competitiveness and globalization: concepts & cases, Cengage Learning Inc, Canada. * Honda 2011, Honda, Vietnam, viewed 12 March 2011, <http://www.honda.com.vn/>. * Honda Annual Report 2008, ‘Review of Operations’, world.honda.com, viewed 13 March 2011, <http://world.honda.com/investors/annualreport/2008/pdf/ar2008-15-33.pdf> * Jansson, H 2007, International Business Strategy in Emerging Country Markets: the Institutional Network Approach, edited edition, Edward Elgar Publishing Limited, UK. * Nguyen, T.D 2007, ‘The Honda motorcycle business in the Vietnamese emerging market’, International Journal of Emerging Markets, vol.2, no.3, Emerald Group Publishing Limited, USA. * Peng, M 2008, Global Strategy, 2nd edition, Cengage Learning Inc, USA. V. Appendix: