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 motorbikes brought by Americans underwent a major change. bike registrations increased by over 800,000 in five years from 1960. In the earlier 60s the major competitors were Haley - Davidson of U.S.A, BSA, rejoice and Norton of the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest market sh are with sales in 1959 totalling a6.6 central dollars. Many of the motorcycles produced were large and bulky and this lead to the image of the motorcycle rider as being one who wore a trounce hood and went out to cause trouble. The Boston Consulting Group ( BCG ) discipline was initiated by the British government to discover the decline in British motorcycle companies around the world, especially in the ground forces where sales had dropped from 49% in 1959 to 9% in 1973. The both(prenominal) key factors the report identified was the market share issue and lucrativeness declines an the scale economy disadvantages in technology, distribution, and manufacturing. The BCG report showed that success of the Nipponese manufacturers started with the exploitation of their own domestic help markets. The high production for domestic demand 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 highly competitive cost side which they used to penetrate into the US market. The sanctioned philosophy of the Japanese manufacture is that high volumes per theoretical account provide the voltage fo r high productiveness as a result of employ! capital intense and highly automated techniques. Their marketing strategies are therefore directed towards developing these high model volumes, therefore the careful attention that we have observed them giving to fruit and market share. (BCG... If you privation to get a full essay, position it on our website: OrderCustomPaper.com

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