Honda Marketing Strategy

The American Honda Motor Company was established as a subsidiary by Honda in 1959. During the 1960s the type of rides brought by Americans underwent a major change. Motorcycle registrations increased by over 800,000 in five years from 1960. In the early 60s the major competitors were Haley - Davidson of U.S.A, BSA, stand up for joy and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest market sh atomic number 18 with sales in 1959 totalling a6.6 zillion dollars. Many of the motorcycles produced were large and bulky and this led to the impression of the motorcycle rider as being one who wore a lash jacket and went out to cause trouble. The Boston Consulting root word ( BCG ) track was initiated by the British government to study the castigate in British motorcycle companies around the world, especially in the the States where sales had dropped from 49 0n 1959 to 9 0n 1973. The two key factors the interpret identified was the market share loss and p rofitability declines an the exit economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Japanese effectrs started with the development of their own domestic markets. The high production for domestic halt in led to Honda experiencing economies of scale as the apostrophize of producing motorbikes declined with the level of output.

This provided Honda to come across a highly competitive cost position which they use to penetrate into the US market. The basic doctrine of the Japanese manufacture is that high volumes per model provide the potency for high productiveness as a resul t of apply capital intense and highly auto! mated techniques. Their marketing strategies are therefore tell towards developing these high model volumes, and then the careful help that we have observed them giving to addition and market share. (BCG... If you requisite to get a full essay, dictate it on our website: BestEssayCheap.com

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