Hondas Entry Into The Us Motorcycle Market Marketing Essay

The history does non stipulate mark market and does non advert troubles faced by Honda the clip they enter in US market. BCG analyses the fight of the bike industry and reference more about Research and Development. In June 1960 Honda ‘s Research and Development attempt was staffed with 700 designers/engineers while merely 100 interior decorator where employed by Europeans and Americans rivals. Besides research shows that in 1962 production per man-year was running at 159 units and a figure non matched with a Harley Davidson until 1974. But, besides BCG R & A ; D shows that Honda ‘s fixed plus investing was $ 8170 per employee which is more than twice its Europeans and Americans rivals.

Besides BCG explained Honda ‘s competitory advantages over its challengers. Honda started to force in the US market the smaller and lightweight bikes which had three velocity transmittal, an automatic clasp, five horsepower while American rhythms had merely two and a half HP, and an electric starting motor and measure through frame for female riders.

Beatrix and Marjorie were the laminitiss of the company. They are cardinal participants. They have a concluding say in the company, but they appoint Chief executive to work for them. They have high involvement about concern in order to cognize if concern is making good and if they can accomplish the aims of the concern.

In June 2004 Sergio Marchionne was appointed to the station of CEO at Fiat. At the clip of his assignment Fiat was in deep problem and he was brought in to turn it about. Using the information in the instance survey undertake a SWOT analysis of Fiat at the clip of his assignment and propose how a SWOT analysis in 2008 may differ.

SWOT analysis is a strategic planning method used to measure the Strengths, Weaknesses, Opportunities, and Threats involved in a undertaking or in a concern venture. It involves stipulating the aim of the concern venture or undertaking and placing the internal and external factors that are favorable and unfavorable to accomplish that aim. “ ”


In 2004 decree has strong trade name acknowledgment in Europe. They use to bring forth most glamourous autos, and were a elephantine mock up of a bantam auto and the new decree 500. But besides they used to bring forth different type of auto theoretical accounts, which, a decree, Alfa { was known for lighter, faster, more nimble vehicles } and lancia, which raised its trading net income from ? 291m to a‚¬ 803m. While in 2008 Fiat better its engineering by being a first car manufacturer to offer diesel engines that comply with so called euro 5 fuel criterions, and new coevals of gasoline engines called Muitiar { fuel efficiency auto } .


In 2004 decree used to do excessively many ugly autos. They thought they had right to make whatever they wanted. But besides the direction construction was hapless, which, caused groups turnover. While in 2008 decree had hapless public presentation in Russia market.


In 2004 Fiat had chance of turning in a auto industry due to the addition in demand. While in 2008, the chance was the joint venture with IVECO and SAIC in China and TATA in India and they expects to do 3.5 million vehicles.


In 2004 there were bing rivals. While in 2008, there were still more rivals even-though the market was detonating but really competitory. But another menace was new European Union functions on C dioxide emanations in to coerce, but Fiat expect its fleet to hold lower norm emanations than any rival.

Case 5: The Profitability of UK retail merchants.

Are British supermarkets more profitable than their European and US opposite numbers?

Net income is the positive addition from an investing or concern operation after deducting for all disbursals.

Net income a‚? Total revere a‚‹ Total cost

Are British supermarket are non more profitable than their European and US counterpart due to the undermentioned ground:

a ) Lower mean return on capital employed. In UK when you invest your money to any type of concern you must anticipate the return on that concern. The higher capital investing demands serving by higher borders. The higher the ROCE the better. ( It indicates the good net income on concern operations ) . The image shows that, UK companies has lower ROSE ( 16 % ) compared to Europeans and US companies, which have ROSE of 20 % up to 24 %

B ) High Building Cost:

The cost of purchasing sites and of edifice superstores are well higher in UK than in other states. So, when the doomed is higher it means the companies wo n’t gain a good net income. As I said earlier on, to gain a good net income, you must do certain that your entire gross is greater plenty than entire cost

C ) Ownership of British houses is public. UK groups are all publically owned, while many of the Continental houses are still private in Europe and US. It ‘s hard to declare higher or lower net income in public ownership. For illustration the state ( UK ) can gain net income of billion lbs, but in fact it ‘s non from one company, it ‘s accumulated from the full supermarket. But besides, even in the distribution of net income, it ‘s ever demotivated and demoralized workers due to the unjust distribution of net income.

Case Study 6: The Novotel Value Chain

What are Novotel ‘s competitory advantages?

Competitive advantage is an advantage over rivals gained by offering consumers greater value, either by agencies of lower monetary values or by supplying greater benefits and service that justifies higher monetary values. “ ”

In order to derive competitory advantage Michael Porter suggested four generic concern schemes that could be adopted. These schemes tell the company on how to distinguish its merchandises or services and the extent to which the range of a concern ‘s activities are narrow versus wide.

The four schemes are in the figure below:

One of the competitory advantages of Novotel is Partnership programmes. They use supplier partnership programmes for buying and acquisition efficiencies. When company purchase in majority they normally enjoy price reduction from the provider. But besides partnership programmes help Novotel on presenting both graduated table and range economic systems.

Another competitory advantage of Novotel is Management procedures. Novotel have multi skilled workers who are flexible to work at any section. Their purpose of holding multi skilling workers is to keep or enable the standardized degrees to be delivered at all locations worldwide. But besides they have good cognition of retaining their staffs. They provide developing for the staffs and organize them to work as a squad which addition efficiency and effectivity of the Novotel.

But, besides Layout of the hotel is another competitory advantage of Novotel.

Novotel use the layout of their hotel to take the client instantly to the welcoming/friendly public infinites of saloon and eating house, which are ever on the entry floor next to response.



How confident are you that the ‘Personal Pair ‘ Project will alter the distinction and low cost trade off?

Differentiation is a concern scheme in which a company tries to derive a competitory advantage by supplying a alone merchandise or service, or supplying a alone trade name of client service. While Low cost trade off is state of affairs under which a house offers a comparatively low monetary value to excite demand and addition market portion.

Am so confident that the Personal Pair Project will alter the distinction and low cost trade off due to the undermentioned facts ;

Advocates of the Personal Pair undertaking envisioned a niche that would let Levi ‘s to avoid competition against the low cost high volume manufacturers. Market research revealed that lone one-fourth of adult female were genuinely happy with the tantrum of their denims, and the company hoped to pull higher income clients who would be willing to pay a small excess for a perfect tantrum.

Another fact is a mass customization theoretical account that could take down costs every bit good as supply the distinction advantage since the re-engineered procedure is frequently more efficient one time new engineerings are applied. For illustration, the mass customization theoretical account, which operates on the pull goaded attack of holding the client thrust the production procedure, would take down distribution costs and stock lists of unsold merchandises.

Besides, Personal Pair was a jeans customization plan made possible through a joint venture with Custom Clothing Technology Corporation ( CCTC ) . CCTC approached Levi Strauss, described the potency of its engineering and suggested together, the two companies could come in the mass customization sphere.

Another fact is, The Personal Pair reflected a signifier of collaborative customization. The attack helps clients who find the array of picks in the market place overwhelming, to contract down their specific demands. The company enters into a duologue with clients to assist them understand what they need, and is so able to supply specialised merchandises that meet that specific demand. Collaborative customizers are able to maintain stock lists of finished merchandises at a lower limit, which brings new merchandises to market faster. That is, they manufacture merchandises in a “ just-in-time ” manner to react to specific client petitions.

Virgin group was founded in 1970 under Richard Branson. The group was covering with mail-order concern and developed as a private company in music publication and retailing. The company was floated in stock exchange in 1986with turnover of ? 250m.

In 2002, Virgin group become one of the UK ‘s largest private companies with one-year turnover estimated at ? 5bn. The concern was virgin Atlantic ( International Airline concern ) . The group consist over 200 concerns straddling three continentals and including fiscal services, planes, trains, film and music shops.

The followers are the chief issues confronting virgin group ;


This is the 1 of the issue that virgin group face in trains operation. Cross state and West seashore lines were runing franchises. They both failed to run the concern and its trains failed to get on clip.

Virgin group should subscribe good contract with their franchisees and to do certain they making good in the industry.

Large trade name name.

Virgin group has reputable trade name. 96 % of UK consumers were cognizant of trade name and 95 % were able to call Richard Branson as a laminitis. All the clients enjoy a nice message on Atlantic flight which is core concern of virgin group. So for those clients who have a bad experience with one of the merchandise lines may destruct others.

So, virgin group should make and set a batch of attempts to maintain the trade name up.

Too broad Portfolio.

The company contained over 200 concerns over three continents. So, the act of running excessively many concerns may raise the issues like communicating and motive jobs. It ‘s cumbrous to pass on effectual for all concern points over three continents, but besides to actuate employees who are far from you.

So, company should hold really competent directors in all concerns for all three continents who will work good with the employees.