Honda's Move into the US Bike Market in 1960s: An instance Study

 Honda’s Move into the US Motorbike Market in 1960s: A Case Study Composition

The case details Honda's transfer to the US motor bike market inside the 1960's. Honda's strategy was directed to high volumes per model, providing large productivity, and low costs. Honda succeeded in the US by introducing a fresh product (small motorcycles, 50cc) that expanded the bike market in the US through cost generic competitive strategy. Honda was prepared with capacity, capital and technical power to enter the ALL OF US market.

Record:

1946: est. Honda Techn. Research Company (internal burning engines) 1947: first Honda A-type 2-stroke engine

1948: Japan bike market: 247 Japanese players, mainly clip-on engines for bicycles 49: first Honda lightweight 50cc 2-stroke D-type motorcycle (3hp); competition launches first 4-stroke engines 51: first Honda 4-stroke engine (6hp: same weight), bought a flower to build these types of engines; as well, Honda began (1) provide a multiproduct range, (2) consider leadership in product creativity and (3) exploit opportunities for economies of mass production 1958: first small , and unintimidating Honda motorcycle intended for local deliveries (50cc, step-through frame, autom. Transmission, one-hand controls; Honda builds a plant with 10x the capacity of the market demand 1959: Honda makes its way into the US market (being already the planet's largest bike producer with sales of $ 55mn

Questions:

1 ) What is the strategy which includes allowed Honda to be so successful in the motorcycle market and, particularly, in the United States?

installment payments on your How well do you think Honda's strategy was planned?

Answers:

1 . Honda's strategy to america market:

a. Product: small light-weight motorcycle, 50cc, 5hp (vs. comp. 2 . 5hp), 3-speed transmission, autom. Clutch, electrical starter, step-through frame; mass produced in Japan. Products happen to be updated or perhaps redesigned whenever a market risk or prospect is identified.

b. Selling price: low-priced; $250 (vs. comp. $1000-1500). Prices are set at levels designed to accomplish...

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