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, support for joy and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest market shargon with sales in 1959 totalling a6.6 zillion dollars. Many of the motorcycles produced were large and bulky and this led to the watch of the motorcycle rider as being one who wore a lash jacket and went out to cause trouble. The Boston Consulting meeting ( BCG ) track was initiated by the British government to study the turn 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 guide identified was the market share loss and profitability declines an the exit economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Japanese effectrs started with the increment of their own domestic markets. The high production for domestic direct in led to Honda experiencing economies of scale as the personify 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 philosophy of the Japanese manufacture is that high volumes per model provide the potential difference for high productiveness a s a result of use capital intense and high! ly automated techniques. Their marketing strategies are therefore tell towards developing these high model volumes, whence the careful help that we have observed them giving to issue and market share. (BCG... If you requisite to get a full essay, gear up it on our website: BestEssayCheap.com

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