Introduction
Honda Motor Co., Ltd. (Honda), was establish on September 24, 1948, develops, produces and manufactures a variety of motor products, ranging from light general-purpose engines and scooters to specialty sports cars (Honda, 2014). They started with a bike equipped with machine tools in 1948, and since then Honda has performed a variety of innovative products that give meaning to each individual's mobility and life in a community.
Today, Honda Motor Co., Ltd business segments are in the motorcycle business, automobile business, financial services business, and power product. Honda conducts its operations in Japan and worldwide, including North America, Europe and Asia (Reuters, 2014). Honda’s main competitors according to Hoovers,
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It is also supported by the recovery of the Japanese earthquake and floods in Thailand, as well as a boost from the launch of new models (Honda, 2013). The graph also shows that in Asia region, Honda net sales increase 65.7%, this happen most of it because Honda market expansion in Indonesia thought P.T Honda Prospect Motor as their consolidate subsidiary. According to Beritasatu.com (2013), Honda car sales in Indonesia during 2013 was increased 32 percent from the previous year. During that year, PT Honda Prospect Motor recorded sales of 91 493 units of the car, as many as 69 320 units a year earlier.
In this assignment, I would like to analyst PT. Honda Prospect Motor internal and external strategies, which is engaged in manufacture and distribution of automobile in Indonesia using Value Chain Analysis and PEST analysis tools.
PEST ANALYSIS
PEST stands for Political, Economic, Social, and Technological. Each factor can have an effect on the business either positive or negative, so the company must make a plan and strategy to anticipate this effect. If the company does not plan a strategy to anticipate environmental changes or try to ignore it, the company may lose the opportunity to grow or could suffer a setback.
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Fact: Harley Davidson is not the only American made motorcycle. There is a myth that Harley is the only American made motorcycle. To believe that, you would need to overlook the Honda of America plant in Marysville, Ohio and the Kawasaki Plant in Nebraska. Both are manufacturing plants, not assembly plants. That means that Honda does not ship in boxes of parts and put them together here as part of some evil conspiracy. Simple fact, it makes good business sense to manufacture their motorcycles in the USA. Manufacturers will be the first to tell you that the work force here is skilled, the U.S. suppliers and vendors produce excellent pieces. Take a good look at the contemporary Harley Davidson; it has quite a collection of foreign made parts. I do not have a problem with this; lets just keep it in perspective. Finally, manufacturers cannot just claim something is "Made in the USA." The Federal Trade Commission has specific criteria for what percentage of the parts must be made and sourced in the USA. There have been years where a larger percentage of a Honda Goldwing was USA made and sourced than a Harley Davidson.
Harley-Davidson states their mission as “We fulfill dreams through the experiences of motorcycling by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments.” They have performed wonderfully over the past hundred years, and have not forgotten their mission or where they came from. Over the years they have stuck with the things they know, and also expanded into related services and products. Out of the 151 motorcycle manufacturers, Harley-Davidson and Indian were the only two companies to survive the Great Depression. Harley-Davidson was the only one in America after Indian dropped out in 1953, but face Indian again now since they re-entered the market in 1999.
The first automobile produced for the masses in the US was the three-horsepower, curved-dash Oldsmobile; 425 of them were sold in 1901 and 5,000 in 1904--this model is still prized by collectors. The firm prospered, and it was noted by others, and, from 1904 to 1908, 241 automobile-manufacturing firms went into business in the United States. One of these was the Ford Motor Company which was organized in June 1903, and sold its first car on the following July 23. The company produced 1,700 cars during its first ...
The case revolves around Bob Marvin, president of the Motor Parts Corporation (MPC), and his executive vice president, AL Shepherd, who held a key senior management position in the company. After Bob, Al had the most important job since most of the line functions reported directly to him. His job required a considerable amount of traveling which he was not able to do lately because of his wife’s illness. Al 's wife, Ruth, was suffering from a malignant brain tumor due to which he was spending more and more time away from work to be with her.
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The motorcycle industry offers products which can be viewed as luxuries or wants as opposed to necessities. When concerning Harley-Davidson, most motorcycle owners have purchased their bikes as a second vehicle, using them more during weekends and off-time instead of during the work week. This implies that the motorcycles serve for recreational purposes and thus are an item which can be expendable at times. This has hurt the industry recently with the slight recession the United States economy is facing. Another interesting thing to note about the motorcycle industry is the different appeal bikes carry in different global regions. In the United States for instance, Harley-Davidson has had much success because of the market trends and tastes people enjoy. Harley-Davidson has benefited from a U.S. market which enjoys casual and recreational riding. This isn’t necessarily the case overseas, as in Europe the trendy pick is a sleeker street bike, with a focus on speed and handling as opposed to power and comfort.
Throughout the world there are numerous automotive manufacturers. Appendix A is a list of 215 that can be found on the Wikipedia Website titled List of current automobile manufacturers (alphabetical). (List of current automobile manufacturers (alphabetical)) Due to the restricted amount of time available of information on manufacturers, and the restricted amount of time available for this paper, research was limited to only the manufacturers listed below for the majority of the industry outlook. [replace with company chosen] was chosen for an in depth review for this report.
Michael Porter tells us how the life cycle works through stages, first of which is the development phase, into the introduction, growth, maturity, and decline. Hunsk motors didn’t carefully take into account each phase of its product sold, and lacked the ability to connect consumers towards the motorcycles identity. By introducing...
After the first 15 years, Harley-Davidson had established themselves as a fore-runner in the motorcycle market. The other prominent companies were Indian, Thor, and Excelsior. At the beginning of WWI, they were overwhelmed with orders from governments around the globe for bikes for the war effort. This allowed Harley-Davidson to almost triple the size of their manufacturing plant, which is still located in the same place in Milwaukee. These orders brought greater economic prosperity to all the motorcycle companies of the time but especially Harley-Davidson.
This case depicts about the success stories of the collaboration in the automobile industry by the Japanese and US firm though they were obviously competitors. One significant success story emerging from the alliance involves Ford probe and Mazda MX-6. There were swapping of resources and capabilities between the two firms. Mazda designers design the basic platform, engine and drive train for the cars. Mazda then design the outside of the MX-6 and Ford does same for the probe. Finally both cars are assembled at a factory owned by the two firms. Ford escort was another successful offspring of the alliance where again the Mazda engineers designed the car and Ford made it. But the alliance was not without spots. Mazda Navaho one of the offspring of the alliance which was basically build upon the on of the Ford popular product Ford explorer and build by the Ford makers. Ford made an opposite step by denying to provide the Japanese partners Navaho production to continue production of its own product line. The partner Mazda in addition fell into financial distress and Ford got the effective management control of Mazda and took some bold steps which eventually went against the collaboration.
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Honda- focused differentiation, medium pricing, breadth of product line is high. Strengths are quality, reliability, overall value, and styling.