Honda Case

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Case Analysis

I. Viewpoint:

President / Chief Executive Officer of Honda Motor Company

II. Time Context:

January 1993

III. Problem Statement:

How will Honda Motor Company implement their additional business expansion in the automobile industry while strengtheningits localization strategies?

IV. Statement of the Objective:

To enchance good market position by expanding the sales through accelerated innovation throughout the company.

V. Areas of Consideration:

* $25B Annual Sales
* 10th largest automobile company in the world
* 4% share of the global market for automobiles
* 77 manufacturing plants in 40 countries outside of Japan * Had the capacity to produce close to 600,00 cars a year in North America * The only automaker that manufactures a small fuel-efficient engine in the United States * Honda’s Localization Strategy on products, profit, production and management * Implementing policies on establishing good human relationship between management and workforce, maintain and promote harmony with the local community infrastructure and giving top priority to maintain high quality standards in its products.

* Honda has always been viewed as something of a newcomer in Japan * Honda found it difficult to break into the well-established distribution system * Had little official support for setting up an export network

* NAFTA (North American Free Trade Agreement) and other free trade agreements * To level up their ranking in the automobile industry

* Honda is confronted by strong competition faced at Japan * Business to be stagnant since Honda is relying on its strength on doing its business overseas * Problems with U.S. Customs on classifying its products whether they are produced locally or overseas

VI. Alternative Courses of Action

ACA 1 – Strategic Market Expansion

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