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Amr Honda Final 2
Amr Honda Final 2
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.
HONDA IN INDIA
INCORPORATED IN DEC,1995 JOINT VENTURE :
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
HMC Sales Allocation Over the Past 9 Months
3% 4%
12%
81%
Honda is the Worlds Largest motorcycle manufacturer but is most known for its automotive industry
CARS
Accord
CRV
Civic
PROMOTION
HONDA promotes its products through; Ads,billboards,tv, Sponsoring sports events Customer service Environment friendly automobiles
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
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
Hondas Strategy
Hondas success at product line expansion, starting at the low end (inexpensive products) and as volume builds, expanding its product range at the high end.
From
To
12
Hondas car strategy was identical to their motorcycle strategy. The potential value of global chess (cross subsidization) as a strategy for competitive advantage
Supplier-partnering hierarchy
Conduct joint improvement activities Share information intensively, but selectively Develop suppliers' technical capabilities Supervise suppliers Turn supplier rivalry into opportunity Understand how suppliers work
Strategic sourcing maximizing the value added through your external suppliers
Will chose highest supplier in overall service
Target pricing
Price table for parts
Quality
Most important factor Must be built into production process
Cost
Suppliers are given target costs
Cost reductions through own ideas,
technology, improved productivity, along with joint efforts with Honda in value engineering, and value analysis
Delivery
Suppliers must use just-in-time production
system
Development
Uniqueness in design and specifications
Helps create identity for Honda
Management
Positive attitude
Enterprise Strategy
Operational Strategy
Individual Strategy Corporate Strategy Business Strategy
THANK YOU