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By, AMOG RACHANAIKAR

"The Power of Dreams"

FOUNDER Soichiro Honda with a view personal mobility for every one!! FOUNDED HONDA MOTORS IN 1948

Masahiro Takedagawa is President & CEO, Honda Siel Cars India Ltd. and Head - South West Asia, Honda Motor Co., Ltd.

Associated with Honda Motor Co. for over 25 years

HONDA IN INDIA
INCORPORATED IN DEC,1995 JOINT VENTURE :

HONDA MOTOR CO. LTD. & JAPAN AND SIEL LTD.

HONDA CITY INTRODUCED IN 1997

INVESTMENT MADE BY THE CO IN INDIA TILL DATE IS Rs1620 CR. Rs 1000 CR. IS PLANNED IN 2ND PLANT IN RAJASTHAN. MANUFACTURING CAPACITY 1LAC. SALES & DISTN. 105 FACILITIES , 62 CITIES

Company Description
Automotive Manufacturers Major 1. Automobiles 2. Motorcycles 3. Power Products 4. Financial Services
HMC Sales Allocation Over the Past 9 Months
3% 4%

12%

Motorcycles Automobiles Financial Services Power Products

81%

Honda is the Worlds Largest motorcycle manufacturer but is most known for its automotive industry

CARS
Accord

CRV

Civic

MISSION AND VISION


The Mission Statement of Honda is try to maintain a global point of view, with the dedication to supply the highest quality products at a reasonable price for worldwide customer satisfaction . Moreover, taking new challenges with the pursuit of Initiative, Technology and Quality, Honda is pursuing their Vision: Striving to be a company society wants to exist through creating new value, globalization, and commitment for the future.

PROMOTION
HONDA promotes its products through; Ads,billboards,tv, Sponsoring sports events Customer service Environment friendly automobiles

Consumer Reports Top Automobile picks

Top Small Sedan Top Family Sedan Top Upscale Sedan Luxury Sedan SUV Small SUV Top Minivan Top Pick-up Truck Green Car Fun to drive

Honda Civic Honda Accord Acura TL (Honda) Infiniti M35 (Nissan) Toyota Highlander Hybrid Subaru Forester Honda Odyssey Honda Ridgeline Toyota Prius Subaru Imprezza

Additionally, Honda was 2nd overall in vehicle reliability right behind Lexus

Pros and Cons

Pros:
Fuel/ cost efficient products and technology Extensive R&D programs Superior Technology Moving towards differentiated product lines One of the few currently profiting companies in its industry Objective Management Structure Continuous increase in automotive sales in North America, particularly U.S., and in Europe as well.

Cons:

Fluctuation of Exchange rates, makes for inconsistent earnings Japans Economy Automotive industry very susceptible to interest rates

Toyota may be a better buy

Hondas Strategy
Hondas success at product line expansion, starting at the low end (inexpensive products) and as volume builds, expanding its product range at the high end.

From

To

12

Results of Riding the Cost Curve From To

Hondas car strategy was identical to their motorcycle strategy. The potential value of global chess (cross subsidization) as a strategy for competitive advantage

Use domestic profits and volume to subsidize


aggressive entry (based on the experience curve) into new markets
13

Supplier-partnering hierarchy
Conduct joint improvement activities Share information intensively, but selectively Develop suppliers' technical capabilities Supervise suppliers Turn supplier rivalry into opportunity Understand how suppliers work

Company Specific Characteristics

Strategic sourcing maximizing the value added through your external suppliers
Will chose highest supplier in overall service

(not just lowest price)

Target pricing
Price table for parts

If price cannot be met, Honda will work with

supplier to get costs down

Customer Satisfaction is top priority


Accomplished through suppliers

competitiveness in quality, cost, delivery, development, and management

Quality
Most important factor Must be built into production process

Cost
Suppliers are given target costs
Cost reductions through own ideas,

technology, improved productivity, along with joint efforts with Honda in value engineering, and value analysis

Delivery
Suppliers must use just-in-time production

system

Development
Uniqueness in design and specifications
Helps create identity for Honda

Management
Positive attitude

HONDA APPLYS 5 LEVELS OF STRATEGY

Enterprise Strategy

Operational Strategy
Individual Strategy Corporate Strategy Business Strategy

THANK YOU

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