Honda Company Analysis

Question 1

Honda production lifecycle went through different stages from the moment their production began as an acknowledgment of every effort they undertook, Honda strides in production had gone through times when the deliberate strategy was needed and times when emergent strategy was required. During their entrance into the United States market, they made a deliberate strategy to introduce cheaper cars than their competitors by producing affordable and luxurious motorcycle, but then rose an issue about engines being faulty, and it caused a halt in production of the 250cc-300cc bike (Hunkeler and Buscheck, 2018). They made an emergent strategy to save their market ahead and developed motorcycles which were of a lower version, and using students from the University of California Los Angeles to promote their product.

Competitor and stakeholder number. Honda after they stopped producing the luxurious motor-cycles, they made a deliberate attempt to lower down the carrying capacities of their motorcycles to 50cc. They had a prediction that people in Los Angeles wanted motorcycle which was cheaper and saved on fuel consumption. This attempt created a lot of competition from their competitors like Sears Roebuck. It prompted them to make an emergent strategy by involving students to promote their product. This emergent strategy saved not only their market muscle but also it improved their bad reputation which had been made by the previous model which had faulty engines and was considered being driven by unruly people.

Competition and stockholder behavior. Honda Company when they want to come up with a new model or a new product into the market, they involve stakeholders in the market. Stakeholders are the suppliers and retailers who use their products (Amedzro St-Hilaire, 2016). This deliberate strategy is to save on cost and to create a model appreciated in the market. For example, before the production of the 1998 accord car, Honda had to seek views from the market suppliers so that they could produce a vehicle which was likable by the customers. And surprisingly this production saved on 10% of all the costs than the previous expenses. This strategy also led to the creation of more number of cars since people had their customers’ preferences.

Industry boundary and structure, Honda faced challenges in penetrating the American market due to restrictions on foreign investments in America. They didn’t give up, they went ahead and made a deliberate strategy never to give up, and they had to be patient until they could penetrate the market. When they entered the American market, the larger companies had already established their names and market in the area, companies such as ford and Mercedes were ruling the market industry and had their boundaries and specific people who were to buy their products (Kim and Min, 2015). They came up with a deliberate strategy to counter their competitors by producing cheaper motorcycles and which was fuel saving. This strategy attracted customers and had the competitors reconsider their products.

Regulations, in some markets Honda have faced challenges in rules. For example, in the United States, there were restrictions on their investments which they were going to start; they had to wait. Also, there are other countries which regulate the number of years a car should have so that it can be accepted in their country (Lafuente and Vaillant, 2016).  They have had to make deliberate strategies which involve customizing their products according to different markets and different laws in a country.

Customer segments and loyalty, Honda Company, has made deliberate strategies to ensure that its customers are loyal and have the best. They introduced a plan where they seek for customer’s advice on their preference on the next production and what they like to be improved, what they want to be removed.  In some points they had had to make emergent strategies in the markets, for example when their reputation had dented due to faulty engines of their motorcycles in Los Angeles, they had to use undergraduate students to make publicity and promotion of their products (Kim and Min, 2015). It renewed back its market position.

Political risks, Honda deliberate strategy, was to avoid being involved in politics, politics usually has impacted both positively and negatively. So far they have become neutral; that’s why they manage to evade any political risks that may occur to the market or their industry. The Honda vision 2030 is to make sure that all the stakeholders either in political space or their customer’s expectation have been met. So far the political risks in Honda have is manageable (Lafuente and Vaillant, 2016). Transactional risks, markets where Honda Company seems to have entered have a solid foundation; they have a deliberate strategy which includes ensuring their company from transactional hazards which could come in case of any fluctuations of exchange rates. The Honda Company has well used deliberate plans and Emergent strategies.

Question 2

The strategic behavior of Honda organization is that it balances between the two strategies. Though there are more deliberate strategies, it also has new strategies to back up the deliberate strategy in case of failure or challenge. Honda company since being founded in 1948, the company has made several strides in the manufacture of motorcycles and the vehicles to trucks industry (Zanardi, 2017). It’s among the leading organization in the world due to its production of high-quality products to its resistance in the market which has made its name. When entering the European market, the Honda Company was very careful in playing its part. The deliberate strategies and Emergent strategies were inevitable.

There was a production of luxurious products such as motorcycles, which were very expensive in the market. Honda Company made numerous decisions and faced many challenges so that its products could be accepted in the European and United States market (Verbeeten, 2009). They went ahead by created excellent products at a lower cost in the market than its competitors who used to produce products which were costly and which were consuming a lot of fuel. This strategy saw the sales of Honda products soar to high levels and making competitors to review their products in the market. This strategy made them successful in the European and united state’s market.

We had also seen Honda coming to a close down when their products became faulty. The Honda Company never lost hope; they went ahead and produced a more straightforward version which was more effective. To clean their name, this had been severely dented. They hired university undergraduate students to promote their products by giving them their motorcycles to drive around. It was an emergent strategy, and it succeeded (Zanardi, 2017). People started to associate themselves with the Honda Company since they saw that the people who were driving were nice people. Honda also has engagements with different stakeholders in their markets such as suppliers and customers so that they get their views on their products.

 
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