Honda-Competition in Industry

1. Is Honda an excellent company? In what sense?

I think Honda is an excellent company.

Why Honda is excellent

* It successfully diversified into Automobile market considering the fact that Nissan and Toyota are already present in market with high entry barrier posed by them.

* Very efficient in globalisation with plants in UK and USA and a very profitable market in US.

* Efficient in development of core competence in vehicle manufacturing technology(Engine) through lots of investment in R&D.

2. What are the strengths and weaknesses that Honda built throughout its history?

Strengths

* Hondaism: - High spirit and philosophy nurtured in Honda value system to make impossible possible with a focus on continuous product development.

* Efficient R&D Divison coupled with value of extreme aggression: - Helped in successful diversification from motorcycle into automobile sector. They were reluctant but when it’s inevitable they were successful because of core competence developed in motorcycle technology.

* Effective Organizational Structure Model: - Honda became no 1 motorcycle manufacturer in world through appropriate but irregular division of role between founders. Current situation demands certain changes but their success with initial models gives them high chances restructuring it.

* CVCC Engine: - First to pass Emission standard tests in US and opened gates for Honda to expand its automobile business in USA and helped to launch cars such as Civic and Accord and hence helps Honda to Specialise its products (Specialisation Advantage).

* Wi-Gaya Method of Decision Making: - Decision making through involvement of all key human assets of Honda.

* Risk Taking: - Though Trade friction due to success of Japanese automobile exports could be attributed as a major reason behind Honda decision of opening -plants in USA but it was a very bold decision for Honda who was running out cash and resources to invest in US and which...