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Hire Writer The BCG report showed that the success of the Japanese manufactures began with the growth of their own domestic market. The high production for domestic demand led Honda to experience economies of scale proportion as the cost of producing motorcycles declined with the level of output.
This allowed Honda to achieve a highly competitive cost position which they used to enter into the US market. The Japanese manufactures believed that high volumes per model provide the potential for high productivity.
They also believe in putting capital back into production and making use of highly automated techniques. Thus, their marketing strategies are directed towards developing these high volumes, hence the careful attention that we have observed them giving to growth and market share.
The BCG asserted that the motorcycles available before Honda penetrated in the US market were designed and marketed toward a limited group of people such as the police, army, etc. However, because Honda had a policy of selling, they marketed their product toward the everyday members of the public, rather than the typical confirmed motorcyclists.
The bike designed for this target market was a small, lightweight bike that sold less than its leading competitors, which were Harley-Davidson of the USA and Triumph and Norton of UK. Another distinguished characteristic that helped Honda become the leading competitor in its field was the addition of staff members.
Besides the increased level of hiring, Honda also implemented other strategies such as the developing region by region. Over a period of years they relocated from the west coast of Harley motorcycle essay to the east coast. Along with expanding their market, they also began to focus more on their advertising.
This theme in particular disassociated Honda motorcycles from other stereotype motorcycles that had a rowdy image. Richard Pascale however, disagrees with the BCG report.
He emphasises on how Honda used the emergent approach to strategise on entering the US motorcycle market. Pascale argues that Honda entered the US market at the end of the motorcycle trade season showing their inability to carry out research in the new market.
Pascale also criticizes the assumption that Honda was superior to other competitors in productivity. He states that Honda was successful in Japan with productivity but evidence suggests that the company was not superior, due to the lack of funding from the ministry of finance and the tight budget they had.
Instead, it was a result of the director of sales persuading management that this was the best course. Pascale however, argues that the idea of designing lightweight motorbikes at low cost was not one of inspiration but one of desperation.
He argues that the intended strategy was one of promoting the larger motorbikes because Honda felt that due to Americans preferring large items, they would be more likely to buy a larger bike. The larger motorbikes intended were unreliable, which led to the promotion of the smaller motorbikes.
Overall, Pascale gives the impression that it was through an incidental sequence of events that led to Honda gaining a strong hold in the US market. This was mainly through the unexpected discovery of a large untapped target market while at the same time trying to retain the interest of the current market.
Pascale also believes that an element of luck also helped Honda follow an emerging strategy. Restrictions placed on the funds by the government for the US venture forced Honda to take an alternate route. If they had all the funds necessary, they may well have gone through the normal distribution channels.
Formulation involved looking at the market, competitors and resources and formulating a corporate strategy which would be implemented throughout each process of the organisational structure.
This is how BCG viewed Honda, as a corporation, who had looked at the market, formulated a strategy to cope with the environment and pressure of competing in the market and implemented it. Pascale however, viewed Honda as having an emergent approach.
This approach shows a realised strategy made up from an intended strategy, together with an emergent strategy, which is not planned but emerges in relations to activities within the environment.
By analysing both accounts, it is evident to state that Honda did not just follow one specific strategy, but rather followed a combination of both deliberate and emergent strategies together. Key lessons to be learned from any comparison of the two quite different accounts of the same strategic decision Both accounts have identified numerous key lessons, the following below are a few of them: This is one of the abilities of the Honda organisation that was most valued.
Advertising to the right target market is also a key lesson to be learned. Innovation is vital to every company. Mr Honda showed his innovative ability by producing better motorcycle engines, and the hiring of additional employees portrayed how strongly they valued innovation, which gradually paid off, leading to success.
In the case of Honda, strengths in design advantages and production methods meant they were able to increase sales in Japan even though at the time there was no organisation within the company.
Culture has also played a huge role at Honda.The free College Papers research paper (Harley Davidson: The American Motorcycle essay) presented on this page should not be viewed as a sample of our on-line writing service. If you need fresh and competent research / writing on College Papers, use .
The movie depicts Harley and the Davidsons trying to work with fellow Milwaukee motorcycle maker Joe Merkel, getting a carburetor from Merkel in the beginning in trade for some engineering tricks Harley .
Read this Miscellaneous Essay and over 88, other research documents. Harley-Davidson Swot 5 Forces. Harley-Davidson Inc., an employer of 4, workers, consists of Harley Davidson Motor Company based in Milwaukee and Eagelmark Financial Services.
Case#2 Harley Davidson Case Study Harley-Davidson is an American motorcycle manufacturer with a rich history and cultural tradition. It was founded in in Milwaukee, WI.
Research on this assignment and write 5 pages based on the question; Marketing Management: Harley Davidsons motorcycle. Ensure that the assignment is original free from plagiarism and use journals and book as references.
Product: Harley davidson Motorcycle Describe the advertising design for your product or service and explain why you feel this will appeal to your target market. Your description should include an analysis of the following: Message strategy Type of advertising appeal used Executional framework Source characteristics Media selection or mix please stick to the typical rules [ ].