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Honda

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  • Transcript

    • 1.
      • Payam Ansari
      • Liew Soo Ting,Christie
      • Khor Siu Gek
      • Mohammad Gholamzade
      Multimedia University, Malaysia
    • 2. A Brief History
      • Founded : September 24, 1948
      • Headquarters : Tokyo, Japan
      • Key people :Soichiro Honda, Founder Takeo Fukui, CEO
      • Industry : Automobile & Truck manufacturer & Motorcycle
      • Revenue : $94.24 billion USD (2007)
      • Net income : $5.0 billion USD (2006)
      • Employees :167,231 (2007)
      Video
    • 3. Environmental Analysis
      • P OLITICAL
        • Legislation
          • Environment
          • Company Cars
        • Taxes and Duty
        • Subsidies
    • 4.
      • Legislation
      • - 1966 : The first safety act (The National Traffic and Motor Vehicle Safety Act)
      • - 1970 : Clean Air Act that demanded a 90% decrease in automobile emission within the next six years.
      • - 1975 : all automobiles had to meet a standard of fuel consumption.
      • - 1992 : installation of front airbags. (Motor Vehicles and Passenger Car Bodies, 2004)
      • - …
      Environmental Analysis - Political
    • 5.
      • Taxes & Duties
      • ( Road tax to be directly linked to amount of emissions.)
      • Subsidies
      • (e.g. Government protection for Renault,
      • Peugeot and Fiat)
      Environmental Analysis - Political
    • 6.
      • E conomic
      • - The automobile industry has a huge impact on the countries’ economy.
      • The study conducted by The University of Michigan and the Center for Automotive Research shows:
      • - This industry is the major user of computer chips, textiles, aluminum, copper, steel, iron, lead, plastics, vinyl, and rubber.
      • - For every autoworker there are seven other jobs created in other industries.
      • - In 2001, the total sales of automobiles were 3.7% of the nation’s GDP.
      Environmental Analysis
    • 7. On the other hand - Excess supply (due to foreign imports) has led to spending heavily on marketing and new product design. - Oil crisis & economic situation of some European countries have made a new increasing market for small and fuel-efficient cars. Environmental Analysis- Economic
    • 8. Environmental Analysis
      • S ociocultural
      • - Today’s society judges people on the type of car you drive!
      • e.g. :
      • A mini van driver is perceived as a soccer mom! Or a Lexus driver is thought to be wealthy.
      • - Another aspect is the environmental concerns for the need of fuel-efficient vehicles.
    • 9. Environmental Analysis
      • T echnology
      • - The most important technology affected auto industry is the Internet.
      • A study showed that 60% of the buyers referred to the internet before making their purchases and out of that 60%, 88% went to the auto websites before going and taking a test drive.
      • - Business-to-business marketplaces opportunities ( more efficiency & lower costs)
      • - Increasing concerns for the economy & global warming with the help of modern technologies resulted to the invention of Hybrid vehicles.
    • 10. Environmental Analysis
      • G lobal
      • - New trade association that created The Alliance of Automobile Manufacturers ( created by GM, Ford , D.Chrysler, BMW, VW, Volvo, Toyota, Mazda & Nissan)
      • - M&As started in the late 1990s. E.g. :
        • Daimler-Benz merged with Chrysler.
        • Daimlerchrysler acquired major share of Mitsubishi.
        • GM became the controlling shareholder of Fiat & Saab.
        • Ford acquired Volvo, Jaguar & major share of Mazda.
        • Renault became the controlling shareholder of Nissan.
      Video
    • 11. Industry Analysis
      • Threat of New Entrants : LOW
      • Barriers to entry:
      • - The industry is very mature & has successfully reached economies of scale.
      • - It needs an incredible amount of capital. (either for manufacturing or R&D)
      • - Difficult to access to distribution channels.
      • - Difficult to exit (ESCAPE)!
    • 12. Industry Analysis
      • Bargaining Power of Supplier : LOW
      • - Large number of suppliers
      • - Low switching cost
      • - No threat of forward integration
    • 13. Industry Analysis
      • Bargaining Power of Buyers :
      • Moderately High
      • - Low switching cost
      • - Large number of buyers & concentrated sellers
      • But
      • - The buyers aren’t large & few in number.
    • 14. Industry Analysis
      • Threat of Substitute Product : LOW
      • - There are not many substitute products for automobiles.
      • - Substitutes products all depend on the geographic location of the consumer.
      • E.g. in New York a car isn’t necessary but in Cyberjaya it is!
    • 15. Industry Analysis
      • Intensity of rivalry among the Competition :
      • Very High
      • - For an industry like automobile industry this amount of companies is high.
      • - Degree of differentiation is not very high. ( comparing all companies together)
      • - The level of fixed-cost is very high
    • 16. Marketing Strategy Products Automobiles, trucks, motorcycles, scooters, ATVs, electrical generators, robotics, marine equipment, jets and jet engines, and lawn and garden equipment.
    • 17. European Market Four large European markets : 1. UK ( 20 models) 2. Germany (16 models) 3. Italy (11 models) 4. France (9 models)
    • 18. Global Supply Network of Autos
    • 19. Pricing Strategy
      • Honda is attempting to price its products at similar level to that of the competition.
    • 20. Distribution Channels
      • Image of Honda’s vehicles & motorcycles in Europe is aligned together.
      • Honda’s vehicles are distributed at the same locations that their motorcycles are.
    • 21. Promotion Mix
      • The promotion of Honda’s products is
      • essentially the same throughout Europe ( whether in France, Italy, Germany or UK )
      • The company spends very little time & Money in promotion.
      • Relied on word of mouth & its websites.
    • 22. Organizational Analysis
    • 23. Organizational Analysis
    • 24. Organizational Analysis
    • 25. Major Problems
      • Failed to understand European culture
      • Automobile industry in the mature stage of life cycle
        • Oversupply of motor vehicles
        • Fierce competition from foreign and local manufacturers
        • Result: Poor market share and decline in sales
      • Weak brand image in European market
        • Difficulty in penetrating in luxury markets
    • 26. Brand Image in Europe Honda Daewoo Hyundai Toyota Audi Volvo Peugeot BMW DMC Fiat GM, Ford VW Renault Low High High Brand Image Breadth of product
    • 27.
      • Treated Europe as one single market
        • Failed to truly understand the culture of Europe
      • Italy and France
      • Slow to adopt Internet
      • Germany & Scandinavian
      High Context Low Context
    • 28. Low context High context Contextual Background of Various Countries Japanese Arabian Latin American Spanish Italian English (UK) French English (US) Scandinavian German Swiss EXPLICIT IMPLICIT
    • 29. Marketing Mix Problems
      • Ineffective advertising strategies / tactics:
        • Standardized advertising campaign
        • Minimal attention on marketing & promotion
          • Solely depends on the success of F1 racing and word-of-mouth
          • Insufficient in Europe market
        • Universal website (informative)
          • Honda Jazz’s website
    • 30. Marketing Mix Problems
      • Standardized distribution
      • Narrow product line
        • Lack of market sensitivity (diesel cars)
      • Late-mover expansion in European market
    • 31. Recommendation
      • Varies marketing mix strategies across national borders due to differences in buying behaviour and habits
      • Marketing strategy plan should be revised
        • Develop according to the nation’s culture
        • Market segmentation according to high or low context culture
    • 32. Recommendation
      • Expand its sales and production in order
      • to survive in global scale competition
        • Fully utilize the technologies capabilities (core competency)
      • Tackle market by manufacturing more low-emission CO2 vehicles and offering more motor vehicle models (diesel cars)
    • 33. Recommendation
      • Allocate more resources to change brand perception (enhance brand awareness)
      • Customize advertising based on style and image
      • Employ PR campaign, road shows, printed and broadcast media
      • Informative advertising
      High Context Low Context

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