Tham khảo Công ty Honda

7301CD 1

Dear my professor,

1.  Analyze the company’s history, development, and growth: It can be seen that the birth of the Indian two-wheel industry started with the small beginnings in the early 1950s when Automobile Products of India (API) set up the production of scooters in the country through the collaboration with Piaggio of Italy as joint-venture (API received the technological know-how from Piaggio of Italy) because prior to economic liberalization (1940s – 1980s), the License raj did not give permissions to foreign companies to enter this marketplace. In the mid-‘80s the Idian government permitted foreign companies to enter this market through minority joint ventures. The four Indo-Japanese joint ventures, Hero Honda (India), TVS Suzuki, Bajaj Kawasaki, and Kinetic Honda, entered this marketplace. Previously, Hero Group was a supplier of bicycle coponents and later Hero Honda Motors, Ltd (hereinafter called Hero Honda) was set up. Hero Honda has won some successes in domestic market.  

2.  Identify the company’s internal strengths and weaknesses: Hero Honda is a company which is own and run by the Munjal family (the Munjals) or its associates, so it can focus on which is so-called a low-cost leadership strategy, a strategy must generally have acceptable quality products that incorporate a good basic design with few frills and offer a limited number of models/styles to select from. The weaknesses of  the company are the lack of significant process automation, capital, and outside-experts who are willing to join it. And above all, Hero Honda cannot have the expansion its market to its whole country or export its products to other countries which have the same conditions.

3.  Analyze the external environment: Hero Honda is in the competition with other Indian-Japanese joint-venture companies such as TVS Suzuki, Bajaj Kawasaki, and Kinetic Honda, and one coming from Monto Motors, a distributors for importing China SKD kits. All of above-said rivals can share the marketplace with Hero Honda. 

4.  Perform a SWOT analysis:

            Strengths: The fundamental principle of Hero Honda is to provide products of superrior value at reasonable prices. This principle is reflected in the company approach to the innovation, quality, and reliability of the products. In addition, Hero Honda set up the network of outlet dealers. Hero Honda paid more attention to the provision of transportation to the masses, so the company not only focused on the high-density urban centers, but also on rural outlying regions where attract less attention of large producers.          

            Weaknesses: The weaknesses of  the company are the lack of significant process automation, capital, and outside-experts who are willing to join it. And above all, Hero Honda cannot have the expansion its market to its whole country or export its products to other countries which have the same conditions.   

            Opportunities: India is a country with huge population and the average per capita income is rather low, so Hero Honda’s products share a huge market.   

            Threats: One of the threats to Hero Honda is its rivals. Especially, the assembly company with cheaper cost of CKD or SKD kits coming from China. 

  5.  Analyze corporate-level strategy: As the above-said principle of Hero Honda is to provide products of superrior value at reasonable prices. The company focused on the masses’ consumption, the large marketplace of common people, but Hero Honda has to cope with the obstacles caused by other rich-capital companies.

6.  Analyze business-level strategy: Hero Honda has its own strategies as the above-mentioned factors. One of the outstanding is to launch a project which meets the environmental and fuel-consuming standards in 1985.

7.  Analyze and correlate the company’s strategic plan to that of its structure and control systems: Hero Honda should find out more mobile capital and set up suitable personnel policy, diversify its products and a suitable global strategy. (as of the below factors)

8.  Make recommendations:

Hero Honda should improve its strategies of low-cost leadership on the personnel policy,  and competitive strategy which can deal with management’s plans for competing successfully the specific efforts to please customers, offensive and defensive moves to counter the maneuvers of rivals, the reactions and responses to whatever market conditions prevail at the moment, and the initiatives undertaken to improve the company’s market position.  

9.  Follow-up plan and schedule:

Hero Honda should find out more mobile capital and set up suitable personnel policy, diversify its products and a suitable global strategy which involves pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost, focused) in all countries where Hero Honda does business, selling much the same products under the same brand names everywhere and expanding into most nations where there is significant buyer demand, integrating and coordinating the company’s strategic moves worldwide, utilizing the same competive capabilities, distribution channels, and marketing approaches worldwide.

REFERENCE

Honda (Press Release)