Honda Motorcycles in the USA

Honda wanted to enter the American market. Because the Americans were used to big, heavy,motorcycles, decided to also introduce their big motorcycles into the American Market. Honda dispatched 5 employees to the States to reconnoitre the American market. However they didnot succeed in gaining a foothold with their 250 cc motorcycles because the American publicpreferred their better and stronger .

Military Knowledge And Business Strategy
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For their personal use the Japanese brought from Japan small agile 50 cc motorcycles, theSupercubs. To their surprise they discovered that especially young Americans showed a greatinterest in these small motorcycles which were not available in America. The Japanese reconnaissance team came to the conclusion that Honda should not penetrate the American marketwith large engines (actually a 'me too' product) but introduce the smaller 50 cc motorcycles whichwere very popular in Japan.

It took a great act of persuasion before the top-management of Honda in Tokyo consented to the ideaof penetrating the American market with their mini-motorcycles instead of the big engines. Itresulted in a great success in spite of the fact that Honda was selling to a completely different marketsegment.

1. Translated into the military jargon the action of Honda was a reconnaissance into enemyterritory and by accident the weak spot of the competition (mainly Harley Davison) wasdiscovered. Thus they could adopt a Persistent Strategy to conquer the American Market.

2. This was a classic example of a weak spot, i.e. a completely neglected and latent need of the consumer which was not recognized by the local industry.

3.  Because Honda (at last) dared to change its original strategy completely it filled the gapsuccessfully. This adaptation of the strategy because of tactical considerations was only possible because of the good organization of the 'operational' home basis of .

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