Honda case

Topics: Grand Prix motorcycle racing, Marketing, Motorcycle Pages: 2 (640 words) Published: November 20, 2014
§ Submit a one-page single-spaced printed copy of individual write ups (Honda A, B)  at the beginning of next class. §Read
1.Book Chapter 1
2.Honda(A), HBS Case #384049
3.Honda(B), HBS Case #384050
4.Appendix 2 in Syllabus (re-read)
§Questions to prep (Honda A,B) :
1.What caused Honda’s success?
2.What role did “good management” play in Honda’s success? 3.How do you define “good management” in #2?

Research and development
Sales volume
Forestall tech obsolescence, Honda stay abreast of tech developments. More flexible channels of distributions
1949 – 70 employees, 1951 – 150, 1052 – 1337
Winning the Isle of Man manufacturer’s prize in 1959
First breakthrough: the Supercub in 1958 50cc
Fujisawa began selling the supercub directly to retailers – and primarily through bicycle shops. Since these shops were small and numerous, sales on consignment were unthinkable. A cash-on-delivery system was installed – giving Honda significantly more leverage over its dealerships than the other motorcycle manufacturers enjoyed. Honda really focuses on Research and Development. When their 2-stroke engine became obsolete, Honda unveiled the 4-stroke engines that were double in horsepower compared to other competitive companies. Honda focuses on sales volume and market share. The sales in U.S. went from $500,000 in 1960 to $77 million 5 years later. Honda targets lightweight motorcyclists and became dominant in the market. Moreover, Honda also competed with Harley-Davidson Triumph 500cc with its own 444c models at lower price. Honda faced many obstacles in its early days. In 1950 it was almost driven into extinction. However, the company always made a breakthrough with its new technology developments. In order to prevent such threat of extinction from happening again, Fujisawa, Honda’s partner, strongly encouraged the company to always stay on top with its technology and keep lower price to compete with so many competitors in Japan as well as the U.S. In order to...
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