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Levels of strategy within the Honda Company

Paper Type: Free Essay Subject: Business
Wordcount: 1212 words Published: 8th May 2017

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This company involves three types of Businesses.

Automobile Business

Motor cycle Business

Power Business

Automobile Business

In this Automobile business Honda leads a good and fastly growing business in automobiles with having special features like greater fuel economy, flexible safety and driving satisfaction. Honda sales improves more successful steadiness not only in the major developed places but also in many areas in the world.

Motor cycle Business

This motor cycle Business is the former business of Honda in 1963 with an event of overseas plant in Belgium. In this business Honda was committed with a basic rule that Building the products which was nearer to the purchaser. Honda was successfully operated 28 motor plants and Honda Research and Development operations in 21 countries. Finally the main aim of Honda is to build Honda cycles most popular forever.

Power Business

This business was first started in 1953, and now it was expanded into o tillers, moveable generators, outboard engines, power carrier. These power products are produced in nine countries, selling in 156 countries around the world.

2) Business Strategy

Research and Development is the most significant and proudest thing in Honda Company because it is improving the business of Honda Company. The systematic way of approaching in the company improves reliability, durability to create original and creative industrial establishment.

Dealership is one of the powers in Honda Company via product creations and services by providing basic values to develop Honda as an exclusive company. Honda services centres on good customer relations, user friendly sales and providing good service support through modifications and up holdings

Manufacturing and distribution also involves important part in success and development of Honda Company.Competiton between Honda and other companies are growing up year by year with some profit and loss characteristics. The only motorcycle that has the equal completion to Honda is Toyota motor. The Honda and Toyota beat the general motor the largely because of its strong come in every year.

3) Operational Strategy

Honda Company divided into six administrative regions for their worldwide operations. This company creates a major role in approximately 28 countries with 134 production facilities and 31 Research and development facilities in 15 countries and almost 1, 70,000 employees and along with 24million customers worldwide annually.

Trading and manufacturing

Now i would like to explain about Porter’s five forces in Honda Company. Usually these five forces will give confidence to the strategic managers and marketers.

It can give proper information about customers what they want and effective control.

The threat of substitute products

In threat of substitute product means, one particular company will produce a product with a top quality and excellent performance and low price compare to the Honda product. That means the particular product will replace Honda’s product t in the market. So automatically business marketing shares will be getting down. For example for a product of Yamaha has the closet substitute of Honda in current market .If Yamaha introduce a product with same features and low cost in the market then the Honda .So the consumers will get change in their minds to prefer to buy Yamaha product.

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The threat of the entry of new competitors

In present marketing world there are many competitors existing. Every company was unable to achieve their maximum profit levels because of many competitors involving. For example when we take Honda and ford companies Honda was not getting their maximum profit because of more competitors in existing American ford market, by spending more money in accessing and distributing products in the market. Honda also faces some problems in approving some culture differences etc will reduce Honda market share down.

Rivalry among existing competitors

Automobile industry analysis is the major competitive rivalry in current marketing conditions. There are three major rivals that Honda has to compete frightening are Toyota motors corporation(TM),Ford motor corporation (FM), general motors(GM).These all are have influence on performance of Honda .

Bargaining power of customers

Here company has to maintain good relationship with customers to exist in their business.Similarlly Honda is the biggest company in the world, it means this company has to face lot of competition from rivals. So customer will get confuse when they make decision for which company will be giving good product .For example Honda launch a new Air Blade Scooter technology with the characteristics like a sports bike that was rapidly attracted by the youth, the thing is when the customers want to buy the bike need to wait for one or two month duration to get the bike. That made the shortage of Air Blade technology in Honda sports bike and pushes the price of the bike in the market to very high. Suzuki Company utilizes as an advantage to overcome from the problem with providing the same features as Honda with amazing price low price when compared to Honda. Finally customers change their mindset then the market of Honda goes to minimize.

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Bargaining power of suppliers

Here suppliers play a fascinating role in company profits. This is one of the features that help the company competitors adjacent to other companies to decrease the cost of ability. Generally Honda Company purchases material and components from external suppliers. Due to the reason that suppliers may refuse to work the firm and company or this suppliers may increase the prices for unique resources.

External Environments in Honda Company

Natural Environment

In present competitive market environment plays a crucial role in company development. Global warming and some pollutions are the major problems in firm [or] company life period.so,Honda company continuously try to reduce C02 emission and toxic wastes in environment with new technologies. For this goal Honda has maintained three valuable ways.

Improvement of fuel efficiency and reduction of unhealthy gases from the engine.

Progression of hybrid vehicles.

Support of another fuel powered vehicle.

Cultural Environment

The first automobile of Honda was launching N600 in 1969 built for Japanese market in United States of America. But unfortunately American buyers desire stronger engines. So this product was failed in American market.

Economic Environment

Honda company business was started initially at Japan after that it’s spread throughout the world. Because of continuous public slowdown, recession, market confidence the overall leads to rising of fuel price in the market. Automatically the demand for all the auto cycles, power products and automobiles reduce their business capability approximately up to 4.1 percentage of loss and the same time the Toyota has lost 5.1 percentage of profit.

Political Environment


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