Marketing Of Honda Motorcycles In The USA

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for domestic demand led to Honda
experiencing economies of scale as the cost of producing motorbikes
declined with the level of output. This provided Honda to achieve a highly
competitive cost position which they used to penetrate into the US market.
" The basic philosophy of the Japanese manufacture is that high volumes
per model provide the potential for high productivity as a result of
using capital intensive and highly automated techniques. Their marketing
strategies are therefore directed towards developing these high model
volumes, hence the careful attention that we have observed them giving to
growth and market share." (BCG p.59 ).

The report goes on to show how Honda built up engineering competencies
through the innovation of Mr Honda. The company also moved away from other
companies who relied upon distributors to sell their bikes when the
company set up its headquarters in the west coast of America. The BCG
found that the motorcycles available before Honda entered ...

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redefining that market by putting up the nicest
people image and exploiting its comparative advantage via aggressive
advertising and pricing.

Pascale tends to disagree on many points of the BCG report. The report
suggests that there was a smooth entry into the U.S market which led to an
instant success. Pascale argues that Honda entered the American market at
the end of the motorcycle trade season showing their impotence to carry
out research in the new market. As they entered the market at the wrong
time sales were not as good as they should have been and any success was
not going to be instantaneous. Pascale also criticises the assumption
that Honda was superior to other competitors ...

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