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The Honda Effect

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The Honda Effect
INTRODUCTION

The two reports are based on Honda’s entry onto the US. They are The BCG report, which was commissioned by the British government to investigate the decline of the British motorcycle industry, and the second report was recorded by Richard Pascale, which looked at Honda’s entry into the US Market.

Honda is a Japan based company and is the world’s largest manufacturer of motorcycles as well as the world’s manufacturer of internal combustion engines (motor vehicles) producing more than 14 million internal combustion engines each year. Honda’s trademark had been registered in Japan since November 13, 1953 it was not until a decade later that the motorcycle and automobile company filed for trademark registration in the United States.

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange, as well as exchange in Osaka, London, Paris and Switzerland just to name a few.

Honda’s global line up consists of the Fit, Civic, Accord, Insight, CR-V, Odyssey and S2000. An early proponent of developing vehicles to cater to different needs and markets worldwide, Honda’s lineup varies by country and may feature vehicles exclusive to that region.
(www.wikipedia.com)

1 What are the key differences between these two accounts of Honda’s entry in the US motorcycle market?

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:

BCG Report PASCALE Report
This report focused on changing the bad image that motorcycles had, by getting rid of the stereotype that motorcyclists were leather-jacketed teenage troublemakers. This report focused on attaining 10% of the import market thus competing with European exports.
According to this report Honda started its push in the US Market with the smaller lightweight motorcycles In this report, Honda pushed into the US market by



References: and bibliography: (www.wikipedia.com) (www.jstor.org) R Pascale, 1996 Mintzberg et. al, 2003, The Strategy Process, 4th edition, Prentice Hall Gerry et. Al ,2008, Exploring Corporate Strategy, 8th edition Prentice Hall

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