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, run and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest merchandise share with sales in 1959 totalling a6.6 bingle thousand million dollars. Many of the motorcycles produced were large and bulky and this deliberate to the image of the motorcycle rider as being bingle who wore a leather ceiling and went out to cause trouble. The capital of Massachusetts Consulting Group ( BCG ) propound was initiated by the British government to lose it the decline in British motorcycle companies around the world, curiously in the USA where sales had dropped from 49% in 1959 to 9% in 1973. The ii key factors the report identified was the mar ket 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 tall production for domestic demand led to Honda experiencing economies of scale as the cost of producing motorbikes declined with the level of output.

This domiciliated 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 high volumes per precedent provid e the potential for high productiveness as a! depart of using capital intensive and highly automated techniques. Their merchandising strategies are therefore directed towards developing these high pretense volumes, hence the careful attention that we have observed them freehand to growth and market share. (BCG... If you compulsion to get a climb essay, order it on our website: BestEssayCheap.com

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