Marketing Of Honda Motorcycles

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their own domestic markets. The high production 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 ...

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dedicated to
being a low cost producer, utilising its dominant position in
Japan to force entry into the U.S market, 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 ...

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