Honda and Hybrid Electric Vehicles

Case Analysis 1 ~ Honda and Hybrid Electric Vehicles

Joe Mama Joe

American Intercontinental University

MGT 626 – Managing Innovation Integrating Technology

July 18, 2014

Case Analysis 1

Honda and Hybrid Electric Vehicles

As the automotive industry continues to grow and make great strides in providing fuel efficient cars that reduce greenhouse gas emissions, the development of Hybrid electric vehicles (HEVs) has been an innovative phenomenon constituting a definitive shift in technology. In 1997, the Honda Motor Company became the first company to offer the first environmentally friendly hybrid vehicle. The Insight was Honda’s first gas/electric hybrid vehicle that offered fuel efficiency and a cleaner transportation alternative (Schilling, 2010). While our world continues to move towards greener environmentally friendly resources, the technology behind HEVs remains a vehemently debated argument. The development of cars that utilize efficient fuel technology would provide an environmental benefit to all. This paper will discuss the innovation of HEVs, the factors that influence the rate HEVs are adopted, the potential advantages or disadvantage of Honda and Toyota using the same engine standard, Honda’s strategy of producing a different engine standard than Toyota, and why is Honda simultaneously developing hybrids, diesel, natural gas, and fuel cell cars?

The Innovation of HEVs

The development of a cleaner transportation alternative has always been the strategy behind the development of HEVs. In part, HEVs are both indelibly incremental and radical innovation. Radical innovation is described as new and different from earlier solutions; while incremental innovation is described as changes or minor adjustment to existing practices (Schilling, 2010). Both Honda’s and Toyota’s initial development were radical for the automotive industry in the early development stage. Over time, their innovations became more incremental.

Schilling (2010)...