ARUN BASSI
SUKRIT GUPTA
VIKALP GARG
AJIT PAL
FOUNDER Soichiro Honda with a view personal
mobility for every one!!
FOUNDED HONDA MOTORS IN 1948
Masahiro Takedagawa is President & CEO,
Honda Siel Cars India Ltd. and Head - South
West Asia, Honda Motor Co., Ltd.
Associated with Honda Motor Co. for over 25
years.
HONDA IN INDIA
INCORPORATED IN DEC,1995
JOINT VENTURE :HONDA MOTOR CO. LTD.
&
JAPAN AND SIEL LTD.
HONDA CITY INTRODUCED IN 1997
INVESTMENT MADE BY THE CO IN INDIA TILL
DATE IS Rs1620 CR.
Rs 1000 CR. IS PLANNED IN 2ND PLANT IN
RAJASTHAN.
MANUFACTURING CAPACITY 1LAC.
SALES & DISTN. 105 FACILITIES , 62 CITIES
Company Description
Automotive
Manufacturers Major
1. Automobiles
2. Motorcycles
3. Power Products
4. Financial Services
Honda is the Worlds Largest motorcycle manufacturer
but is most known for its automotive industry
CARS
Accord
CRV
Civic
GENERATORS
EU1000iA
1000 watts, 120V
EU2000iA Camo
2000 watts, 120V
EU6500iSA
6500 watts, 120/240V
PROMOTION
HONDA promotes its
products through;
Ads,billboards,tv,
Sponsoring sports events
Customer service
Environment friendly
automobiles
The 4 Types of International
Marketing
Global marketing
strategy
(same everywhere)
Global
tactics
Pure Global
Some tactics
adapted
locally
Global
Local marketing
strategies
(specific to each country or
region)
Mix of
global &
local tactics
Only local
tactics &
marketing
mix
Glocal
Pure Local
Bongrain : cheeses
Strengths
Diversification.
World leader (Bikes).
Quality and customer
satisfaction.
Competitiveness in
innovative .
Pioneer in engineering low
emissions internal
combustion and hybrid
technology.
Opportunities
Offering in a pickup type truck
would be profitable.
Continue progressing low
emission vehicles and alternative
power sources.
Weaknesses
Prices.
They do not have a strong
offering in a truck line.
Reputation for being
underpowered or pokey
econo-boxes.
Threats
Prices.
Technology.
New Markets.
Consumer Reports Top Automobile picks for 2006
Top Small Sedan
Top Family Sedan
Top Upscale Sedan
Luxury Sedan
SUV
Small SUV
Top Minivan
Top Pick-up Truck
Green Car
Fun to drive
Honda Civic
Honda Accord
Acura TL (Honda)
Infiniti M35 (Nissan)
Toyota Highlander
Hybrid
Subaru Forester
Honda Odyssey
Honda Ridgeline
Toyota Prius
Subaru Imprezza
Additionally, Honda was 2nd overall in vehicle reliability right behind Lexus
Marketing/Technology
The new ACE System
(Advanced Compatibility
Engineering)
5 star rating
Hybrid Engines
ASIMO
Jet Engines Manufacturing
Nattokinase
Research and
Development
Honda currently has individualized R&D facilities
in Japan for motorcycles, automobiles, and power
products, and a motorcycle R&D center in China
for its increasing market demand.
HRI (the Honda Research Institute) is located in
Japan, U.S., and Germany.
- Research focus on: robotics technology, automotive
safety, ultra lightweight products, and
fuel cell technology
- Deriving automotive fuel from plants.
Honda also has networked facilities in the UK,
Germany and Italy (to help focus on the European
market more independently)
Management Structure
President and
Representative Director
Takeo Fukui
Age: 62
Executive Vice-President
and Representative
Director
Satoshi Aoki
Age: 60
Promotion of Objective Management:
Staff composed of 22 personnel. Two director positions and one
auditor assigned annually outside the company.
Temporary directors are paid according to how well the Company
performs during their tenor.
Industry Trends
Trend of Companies performing well in foreign markets, but not
domestically.
GM: Dealing with Health care problems ($100B annually)
Sold GMAC Subsid.
Filed for bankruptcy
Ford: $1.6B decline in car sales from years ending 04 05
Sold Hertz rentl car business
Chrysler: Changes management around
Only U.S. manufacturer not in the red
Also filed for bankruptcy
Fiat had purchased some share in Chrysler
Volkswagen: high prices, low quality, plus labor force issues
Toyota and Honda are prospering well in U.S. market
Everyone looks to China for expansion
Pros and Cons
Pros:
Fuel/ cost efficient products and technology
Extensive R&D programs
Superior Technology
Moving towards differentiated product lines
One of the few currently profiting companies in its industry
Objective Management Structure
Continuous increase in automotive sales in North America,
particularly U.S., and in Europe as well.
Cons:
Fluctuation of Exchange rates, makes for inconsistent earnings
Japans Economy
Automotive industry very susceptible to interest rates
Toyota may be a better buy
Questions
