Honda Motorcycles

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in 1955. At its peak in 1982, Honda manufactured almost 3 million motorcycles annually. By 2006 this figure had reduced to around 550,000 but was still higher than its three domestic competitors.

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese motorcycle market and began exporting to the U.S. Taking Honda's story as an archetype of the smaller manufacturer entering a new market already occupied by highly dominant competitors, the story of their market entry, and their subsequent huge success in the U.S. and around the world, has been the subject of some academic controversy. Competing explanations have been advanced to explain Honda's strategy and the reasons for their success.

Honda's success was due to the adaptability and hard work of its staff, rather than any long term strategy. For example, Honda's initial plan on entering the U.S. was to compete in large motorcycles, around 300 cc. It was only when the team found that the scooters they were using to get themselves around their U.S. base of San Francisco attracted positive interest from consumers that they came up with the idea of selling the Super Cub.

Honda's success was due to its focus on leadership in the technology of internal combustion engines. For example, the high power to weight ratio engines Honda produced for its racing bikes provided technology and expertise which was transferable into mopeds. Honda's entry into the U.S. motorcycle market during the 1960s is used as a case study for teaching introductory strategy at business schools worldwide.

By: paul4595

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