CASE AN ALYSIS on HO N DA Cars Phi l i ppi nes Inc.

VIEWPO IN T
The Honda Cars Philippines Inc. (HPCI) is a well-planned industry. It has a good prospect in the utility services. Having wide possibility for progress in the future, viewing the market demands.

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II. TIME CO N TEXT

The case happened in 1997, where the local currencys value plunged and interest rates skyrocketed.

III. STATEMEN T O F TH E PRO BLEM( S)

Ma in Proble m 1. What is the reas o n b ehind Ho nda cars s ales d eclined ? Se conda ry Proble m 2. What are the ways to maintain its numb er o ne p o s ition in the market? 3. Ho w to reg ain its lo st market s hare?

IV. STATEMEN T O F O BJECTIVE S

To b e ab le to ad o p t p lan to reg ain its lo st s tand ard either in p ricing o r its q uality o f their p ro d ucts. To b e ab le to id entify the facto rs o f Honda Cars Phils . Inc. lo w s ales To b e ab le to clas s ify the s treng th, weaknes s es, o p portunities and threats that the co mp any have.

Strength

V. AREAS O F CO N SIDERATI ON

Innovation

Strong brand equity Unique products Market share leadership in smart segment Production system that is refined over the years Popularity which result for the betterment of the company

V. AREAS O F CO N SIDERATI ON
Weaknesses Cost structure is high Requires privileged purchase deposit Civic model is consider as one of the major weaknesses of Honda company In truck line, Honda Company is not offering strong products and proposals.

V. AREAS OF CO N SIDERATIO N
Opp o rtun it ies Honda can increase its production by focusing on sales and research Various models are there which caters the lower segment Fuel efficiency T hreats

Economic slowdown Lower cost competitors All external changes like taxes, politics and government

VI. ALTERN ATIVE CO U RSES OF ACTIO N

Review on the price list that was being instituted by the company To re-check the materials in the manufacturing process To employ advertiser of its good performance Improving its quality by extensive research and focusing the needs of their customers. Example: Attractive color combination of car appearance and inside accessories to attract customers

VII. STRATEG Y FO RMU LATIO N

Ho nd a cars is kno wn fo r its ad vertising methods like TV co mmercials , b illboards and b ro ad sheets ad s and etc. The co mp any mus t p rep are an attractive b ro chure s tating therein the ad vantages o f the p ro d uct, co vers attractive p rices, a s o rt of p ro mo to attract b uyers. This tantamo unt to hig h level o f ad vertisement to b e hand le b y a p ro fessional p ersonnel, exp ert in this line o f b us iness.

VIII. ACT ION P L ANS

Specific Task Areas of Timelin Responsibilit e y Budget

VIII. ACT ION P L ANS

Specific Task HRD 1. Hire a personnel with pleasing personality and good sales communication Advertising 2. Increase the frequency in Dept. advertisement like TV, billboards, broadsheets ads, internet and others. Also ties up with other promos with car prizes, 3 to 6 mos. Mone y and peopl e 3. New direction in product positioning - relationship marketing - customer intimacy - added value services - affordability 4. Good value Pricing - innovation of products to justify Areas of Timelin Budget Responsibilit e y Marketing 6 mos. Money Dept. and people

Money, Continu machin e and ous people

Contin Finance Dept. u- ous

Money, people and

IX. P OT E NT IAL P ROBL E MS

X. CONT INGE NCY P L AN

What if Honda Cars Phils. Inc. announces voluntary recall of some Honda cars? What if competitors uses the same technology?

Provide a great performance cars Provide a high and powerful research and development Example: Revolutionary engine technology