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MGT 526 UOPX Week 3 Business Strategies for Honda Motor Paper

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Management
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University of Phoenix
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Aligning Operational Needs with Business Strategies for Honda Motor
Motor Honda Co., Ltd. is one of the leading companies in auto manufacturing. Over the
years, the company has not only been in the auto manufacturing industry but has tapped into
other consumer goods. Honda distributes over 6 million power products yearly in 150 nations.
They have also invested in research in AI and better ways to ensure their vehicles are built well
and innovative.
Analysis based on Porter’s Five Forces
Porter’s Five Forces is a way to analyze the competitiveness of your business
environment and give you a way to identify potential profitability. This is a good way to look at
your business because it gives you a chance to see what would affect your profitability and what
you would need to do to prevent loss of profit.
Competitive Rivalry
The competition amongst other companies is high and can bring down the prices. There
are several other auto manufacturing companies that are looking into the same research Honda is.
The rivalry will affect the total long-term productivity of the business. Therefore, it is important
for Honda to come up with a differentiation strategy and ensuring that it’s cost effective to
consumers to strongly compete.
Supplier Power
There are many auto manufacturing suppliers in which allows Honda to be more
dominant in where they get their products. The company can shift where they get their products
allowing them to get an upper hand on bargaining. Many of the suppliers depend on Honda for
business, therefore giving even more power.

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Buyer Power
Customers are usually the more demanding wanting good products for low prices. In the
long run, this burdens the company’s profitability. Honda has a large customer base which helps
with the bargaining power and they are innovative with their products, keep customer demands
to a minimum. If they handle their shortcomings of existing products and increase demands from
customers, Honda will be able to handle the demands with authority.
Threat of Substitution
Honda has a moderate risk of substitution. There are many different car brands out there
that are giving the same features, or some may even have better features. Prices are also
competitive. There is also public transportation or car services that can take the place of Honda.
Honda has a positive outcome since they have brand recognition, marketing competencies, and
an extensive range of products.
Threat of New Entry
New entrants carry innovation to auto manufacturing with fresh new technologies that
can put a burden on the company. They are also introducing this with lower costs and consumers
in mind. For Honda to stay relevant in this changing environment, they need to find ways to
continuously bring innovation at low costs to satisfy customer needs and wants.
Contingent leadership model
Honda’s leader, Soichiro Honda believes in team work. He believes that everyone should
be clear on the vision and mission of the company as well as be part of the new things the
company is doing. He feels that failure is part of the process and encourages ‘failures’ in order to
succeed. He shows appreciation to his talent and is open minded to their ideas.

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Aligning Operational Needs with Business Strategies for Honda Motor Motor Honda Co., Ltd. is one of the leading companies in auto manufacturing. Over the years, the company has not only been in the auto manufacturing industry but has tapped into other consumer goods. Honda distributes over 6 million power products yearly in 150 nations. They have also invested in research in AI and better ways to ensure their vehicles are built well and innovative. Analysis based on Porter’s Five Forces Porter’s Five Forces is a way to analyze the competitiveness of your business environment and give you a way to identify potential profitability. This is a good way to look at your business because it gives you a chance to see what would affect your profitability and what you would need to do to prevent loss of profit. Competitive Rivalry The competition amongst other companies is high and can bring down the prices. There are several other auto manufacturing companies that are looking into the same research Honda is. The rivalry will affect the total long-term productivity of the business. Therefore, it is important for Honda to come up with a differentiation strategy and ensuring that it’s co ...
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