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 motorcycles brought by Americans underwent a major change. bike registrations increased by over 800,000 in five years from 1960. In the primaeval 60s the major competitors were Haley - Davidson of U.S.A, BSA, endure and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest trade share with sales in 1959 totalling a6.6 maven thousand million dollars. Many of the motorcycles produced were large and bulky and this do to the image of the motorcycle rider as being single who wore a leather ceiling and went out to cause trouble. The capital of Massachusetts Consulting Group ( BCG ) work was initiated by the British government to decompose the decline in British motorcycle companies around the world, oddly in the USA where sales had dropped from 49% in 1959 to 9% in 1973. The ii key factors the report identified was the market share loss and lucrativeness declines an the scale economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Japanese manufacturers started with the growth of their own domestic markets. The lofty production for domestic demand led to Honda experiencing economies of scale as the cost of producing motorbikes declined with the level of output.

This showd Honda to achieve a exceedingly warring cost position which they used to penetrate into the US market. The basic philosophy of the Japanese manufacture is that high volumes per precedent provide the potential for high pro ductiveness as a top of using capital inte! nsive and highly automated techniques. Their selling strategies are therefore directed towards developing these high exemplification volumes, hence the careful attention that we have observed them great(p) to growth and market share. (BCG... If you compulsion to get a sufficient essay, order it on our website: BestEssayCheap.com

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