Honda International Business Strategies



Honda International Business Strategies

Introduction

Honda Motor Co. Ltd today tends to stand among the leading automakers of the world and hence is the leader in the context of motorcycle manufacturer in the whole world. Honda Motor Co. Ltd over the years has seen massive growth and has stretched their area of operations. Today the company tends to develop, manufacture and also market different range of products form motorcycles to power products. Honda Motor Co. Ltd have been able to widen its operation beyond its home country Japan, today the company tends to operate and functions in various parts of the world. However, Honda Motor Co. Ltd primarily operates in North America, Asia, and Europe. It has it's headquarter situated in the city of Tokyo, whereas it tends to employ 179,060 people.

As indicated above the company has seen massive growth and the year 2011 was no different. Honda Motor Co. Ltd recorded the revenues of JPY8, 936,867 million which tends to be interpreted as $104,561.3 Million during the fiscal year which ended in March 2011. Honda Motor Co. Ltd also saw an increase of 4.2 percent as compared to the year 2010.However, the operating profit of the Honda Motor Co. Ltd tends to stand at JPY569, 775 Million which tends to interpret itself as $6,666.4 Million during the fiscal year of 2011.Which is 56.6 percent more as compared to the year 2010.Whereas, the net profit of the Honda Motor Co. Ltd in the fiscal year of 2011 stood at JPY534, 088 Million, this is translated as $6,248.8 Million.

The net profit of the Honda Motor Co. Ltd strengthened by 99 percent as compared to year 2010. However, in some of the markets Honda Motor Co. Ltd market share saw a decline such is the case of United States where it fell from 10.6 percent to 9.Similarly in some markets the market share of the company grew such is the case of brazil where the market share in terms of the motorcycles grew to 8O percent (world.honda.com).

Discussion

Business Strategy

In the context of this paper the business strategy of the Honda Motor Co. Ltd will be analyzed based on the factors such as cost leadership, Horizontal integration and Vertical Integration.

Cost Leadership

The Concept of Cost Leadership tends to be used very often in the business strategy as it illustrates the path to establish a competitive edge over the other products in the market. However, the cost leadership in its literal term means the lowest cost of operation in the market. Honda Motor Co. Ltd tends to offer a wide array of products to its consumer and in my opinion this tends to be the competitive edge of Honda over the other products or competing brand. Since Honda has an established name therefore the consumers tend to trust Honda lot more as compared to any other manufacturer. This factor also tends to serve as the differentiating factor for the Honda thus it provides an attraction to Honda over other brands (John, ...