HONDA

Honda



DECLARATION

I, [type your full first name and surname here], declare that the contents of this report represent my own unaided work, and that the report has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study we try to explore the concept of “Honda as an equidistant company” in a holistic context. The main focus of the research is on “Honda Motor Company” and discusses “concept of being a global company and equidistant from all its customers”. The research also analyses many aspects of “Honda Motor Company” and tries to gauge its effect on “building a competitive advantage”. Finally the research describes analyse the case study of Honda Motors and to conclude the research and achieving the research objective.

Table of Contents

About Honda Motors5

Mission and Value of Honda6

Porter's Five Forces Analysis7

Honda Motors SWOT9

Honda PEST Analysis12

Market Positioning14

Value chain creation Strategy15

Factors making Honda an equidistant company18

Recommendations for Honda23

Honda

Introduction

Honda Motor Company is Japan's second largest automaker, as well as the world's largest motorcycle manufacturer. Honda is particularly notable for its unusually high spending on research-and-development (R&D), which is the equivalent of about 5% of revenue. Honda's research efforts have resulted in major developments in robotics, jet engine design and numerous automotive technologies. Honda was one of the first automakers to mass produce engines with variable valve timing (VVT), which can significantly increase an engine's fuel efficiency or power output. Honda was also the first automaker to offer a hybrid vehicle, the 2000-2006 Honda Insight, but it did not achieve the commercial success of the rival Toyota Prius. In the US, Honda sells vehicles under the Honda and Acura (luxury) brands. The company wholesales automobiles and motorcycles in the US through its subsidiary American Honda Motor Co., Inc. ("American Honda"). American Honda began as a motorcycle store in Los Angeles in 1959. The company now wholesales automobiles under the Accord, Civic, and Acura brand names, and motorcycles under the Gold Wing, Shadow, and Valkyrie brand names. Honda's best-selling automobiles in the US are the Odyssey minivan and the CR-V sport utility vehicle (SUV).

In JD Power's 2010 overall vehicle quality study, Honda tied with Ford for highest overall quality among mass market brands (Minzburg & Quinn 2006, 45-50). In the same study, Acura received a perfect score. Among driving enthusiasts, Honda has developed a reputation for excellence in engineering. Despite being known for its engine designs, Honda has never produced a V8 for passenger vehicles. In Japan, cars are taxed according to engine displacement, which encourages automakers to develop smaller and more powerful engines. Honda's top-of-the-line engines are V6 engines with VTEC variable valve timing (Zaccaro & Marks 2001, 451-483).

Honda is known for innovative vehicle platforms and designs that emphasize simplicity and frugality. It developed the first commercially available hybrid car: the 2000 Honda Insight. The three-cylinder vehicle was not intended for mass market appeal, unlike the more successful Toyota ...