Strengths and weaknesses of Honda’s business strategy
There are many strengths to Honda’s overseas business strategy. One of the things Honda is most proud of is its R&D system. With a wise commitment to the future, Honda is keen about social, environmental, and economical issues, this results in a steady presence in America and Europe. Honda creates products that are unique under the slogan “Three joy”(the joy of selling, production and buying” which make Honda products so inspiring to the consumer. Honda also created the slogan “Life with a Honda” in line with bringing together its several facilities in attempts to enhance the Honda brand, and ensure customer loyalty and satisfaction.
Honda has earned respect for producing excellent quality automobiles. In fact Honda is the biggest motorcycle manufacturer in the world. Honda has earned many prizes for customer satisfaction and initial quality. Their automobiles are fuel efficient and reliable. Their keen research has awarded them a competitive edge in innovative technology. Honda’s strategy has made them pioneers in manufacturing low emissions engines and hybrid systems. Honda has been able to spread out into other types of production other than
Road vehicles. The Asimo robot and a high achieving motor sport program translate to innovations that help them gain press and consumer recognition all over the world. Honda ranked second in the F1 championships and won the title for Moto Gp manufacturers.
Honda’s business strategy is to enhance value through global sales by use of innovation in manufacturing and sales. Instead of manufacturing its products in one plant, Honda uses a strategy of manufacturing products in the region where they are sold. By so doing, production is increased where demand is high. This strategy has paid of and resulted in over a hundred manufacturing firms in over thirty nations. They have called this process “globalization”. They are also guided by a loyalty to the future .This goal is expressed in various ways. Manufacturing plants that are environmental friendly are one example, another is production of low emission vehicles as well as quality and efficiency. Honda also has expanded in India and china. This expansion saw Honda quadruple its production in 2006.In India there is a motorcycle that costs less than 2000$.This is a wise business strategy as it is suited with Honda’s manufacturing in the region of sales.