Marketing of Honda motorcycles in the USA

The American Honda Motor Company was established as a subsidiary by Honda in 1959. During the 1960s the type of wheels brought by Americans underwent a major change. bike registrations increased by over 800,000 in five years from 1960. In the earlier 60s the major competitors were Haley - Davidson of U.S.A, BSA, be on cloud nine and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest market sh be with sales in 1959 totalling a6.6 primeval dollars. Many of the motorcycles produced were large and bulky and this lead to the image of the motorcycle rider as being one who wore a lather hood and went out to cause trouble. The Boston Consulting Group ( BCG ) track was initiated by the British government to discover the decline in British motorcycle companies around the world, especially in the ground forces where sales had dropped from 49% in 1959 to 9% in 1973. The twain key factors the report identified was the market share firing and lucrativene ss declines an the scale economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Japanese manufacturers started with the exploitation of their own national markets. The high production for domestic demand led to Honda experiencing economies of scale as the cost of producing motorbikes declined with the train of output.

This provided Honda to achieve a highly competitive cost stance which they used to penetrate into the US market. The sanctioned philosophy of the Japanese manufacture is that high volumes per theoretical account provide the emf for high productiveness as a result o f development capital intense and highly a! utomated techniques. Their marketing strategies are therefore directed towards developing these high model volumes, and so the careful attention that we have observed them giving to festering and market share. (BCG... If you privation to get a full essay, localize it on our website: BestEssayCheap.com

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