The American Honda Motor Company was established as a subsidiary by Honda in 1959. During the 1960s the type of bikes brought by Americans underwent a major change. ride registrations increased by over 800,000 in five years from 1960. In the archean 60s the major competitors were Haley - Davidson of U.S.A, BSA, rapture and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest market share with sales in 1959 totalling a 6.6 million dollars. Many of the motorcycles produced were large and bulky and this led to the range of the motorcycle rider as being one who wore a whip jacket and went out to cause trouble. The Boston Consulting chemical group ( BCG ) report was initiated by the British government to study the twilight in British motorcycle companies around the world, in specific in the USA where sales had dropped from 49% in 1959 to 9% in 1973. The two key factors the report identified was the market share difference and profitability declines an the carapace economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Nipponese manufacturers started with the ontogeny of their own national markets. The juicy production for domestic petition led to Honda experiencing economies of scale as the cost of producing motorbikes declined with the level of output.
This provided Honda to achieve a exceedingly competitive cost position which they used to penetrate into the US market. The basic philosophy of the Japanese manufacture is that in high spirits volumes per type provide the potentiality for high prod uctivity as a result of using capital inte! nsive and highly alter techniques. Their marketing strategies are therefore directed towards developing these high model volumes, hence the careful attention that we have notice them giving to growth and market share.... If you want to get a full essay, order it on our website:
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