Honda Motor Company Limited - Strategy Brief - 2014 - Key Strategies & Plans
1. Rationale:
This Strategy Brief analyses & provides comprehensive insights into the Strategic Positioning, Strategic Priorities, Strategic Responsiveness and Key Strategies & Plans for Honda Motor Company Limited based on a holistic assessment as well as comprehensive analysis of Business Activities, Strategic Initiatives, Business & Strategic Developments and Strategic Moves & Measures against the backdrop of an evolving industry landscape & shifting global dynamics.
2. Industry Backdrop
The global automotive industry landscape has undergone a major transformation since the global economic crisis of 2008 with the complete transformation of Detroit 3 that has led to resurgence of GM & a combined Fiat-Chrysler entity, stronger focus on compact & more fuel efficient vehicles, surge of interest in as well as expanding capabilities of pure electric vehicles (EVs) & plug-in hybrids and the strengthening of focus on & investments in emerging markets by almost all key global OEMs.
The industry, however, continues to face a number of significant challenges amid the backdrop of a difficult, complex & uncertain global macroeconomic environment led by the European debt crisis and the continuing U.S. economic difficulties coupled with the sporadic global currency exchange rate fluctuations, especially, the surge in U.S. Dollar against all major global currencies that is impacting profitability and the simultaneous, significant weakening of Japanese Yen that has bolstered Japanese exports. The recent softening of global commodity prices of-late and the recent drop in crude prices, however, have so far been favourable for the industry.
The automotive sales in the U.S. reached the 14.5 million units level in 2012, registering a 13.5% growth; the industry’s best-ever performance since the pre-crisis average level of 17 million vehicles driven by the economic recovery, strong replacement demand fuelled by new product introductions and prevailing, favourable interest rates. The going so far has been steady for the industry in H1 2013 with CUVs & Pickups dominating sales thereby boosting the overall prospects, market shares & profitability for the Detroit 3. Further, projections for the year 2013 indicate towards a healthy 5% sales growth at 15.5 million units level and 2014 estimates indicate towards a continued, steady recovery with the industry likely to touch the 16 million units mark. The European industry, on the other hand, witnessed its worst ever year in 2012 with demand contracting by 8.2% to the 12.05 million vehicles level, lowest since 1993 and the projections for 2013 indicate towards a further 3% contraction in sales. Emerging markets, on the other hand continue with their growth momentum albeit slower economic growth rates.
3. Relevance & Usefulness: Strategic Business Analysis, Planning & Decision-Making Process
The report provides insights & inputs to be incorporated into the broader strategic planning & decision making processes and will be essential from a competitive analysis standpoint as well.
The report will be useful for:
The report would be essential for those having strategic interest in Honda Motor Company Limited and the Global Automotive Industry & will be especially useful for Key Decision-Makers, Top Management of Companies, OEMs, Suppliers, Distributors, Vendors and other Key Players in the Industry Value Chain as well as existing & potential Investors, Industry & Company Analysts & those associated with the Industry or the Company.
5. Report Highlights: Visual Representation/Orientation with a Slide based Architecture
The report is comprehensive yet concise & compact at the same time; is custom-built for meetings & presentations with visual representation & orientation based on a slide architecture, being built on the Microsoft PowerPoint platform; in addition, to being a ready self-reckoner as well as a quick reference guide driving, enabling & ensuring prompt and informed decision making.
5. Key Takeaways: Enhances Scope of Utilization/Application with Visual Representation & Saves Time
This PowerPoint architecture based report provides high readability & ease of navigation and saves significant amount of time by saving the end-user the effort of sifting through voluminous pages of text besides enhancing the scope of retention, utilization & application of analysis with visual representation and incorporation of relevant images to support & supplement the analysis.
This Strategy Brief analyses & provides comprehensive insights into the Strategic Positioning, Strategic Priorities, Strategic Responsiveness and Key Strategies & Plans for Honda Motor Company Limited based on a holistic assessment as well as comprehensive analysis of Business Activities, Strategic Initiatives, Business & Strategic Developments and Strategic Moves & Measures against the backdrop of an evolving industry landscape & shifting global dynamics.
2. Industry Backdrop
The global automotive industry landscape has undergone a major transformation since the global economic crisis of 2008 with the complete transformation of Detroit 3 that has led to resurgence of GM & a combined Fiat-Chrysler entity, stronger focus on compact & more fuel efficient vehicles, surge of interest in as well as expanding capabilities of pure electric vehicles (EVs) & plug-in hybrids and the strengthening of focus on & investments in emerging markets by almost all key global OEMs.
The industry, however, continues to face a number of significant challenges amid the backdrop of a difficult, complex & uncertain global macroeconomic environment led by the European debt crisis and the continuing U.S. economic difficulties coupled with the sporadic global currency exchange rate fluctuations, especially, the surge in U.S. Dollar against all major global currencies that is impacting profitability and the simultaneous, significant weakening of Japanese Yen that has bolstered Japanese exports. The recent softening of global commodity prices of-late and the recent drop in crude prices, however, have so far been favourable for the industry.
The automotive sales in the U.S. reached the 14.5 million units level in 2012, registering a 13.5% growth; the industry’s best-ever performance since the pre-crisis average level of 17 million vehicles driven by the economic recovery, strong replacement demand fuelled by new product introductions and prevailing, favourable interest rates. The going so far has been steady for the industry in H1 2013 with CUVs & Pickups dominating sales thereby boosting the overall prospects, market shares & profitability for the Detroit 3. Further, projections for the year 2013 indicate towards a healthy 5% sales growth at 15.5 million units level and 2014 estimates indicate towards a continued, steady recovery with the industry likely to touch the 16 million units mark. The European industry, on the other hand, witnessed its worst ever year in 2012 with demand contracting by 8.2% to the 12.05 million vehicles level, lowest since 1993 and the projections for 2013 indicate towards a further 3% contraction in sales. Emerging markets, on the other hand continue with their growth momentum albeit slower economic growth rates.
3. Relevance & Usefulness: Strategic Business Analysis, Planning & Decision-Making Process
The report provides insights & inputs to be incorporated into the broader strategic planning & decision making processes and will be essential from a competitive analysis standpoint as well.
The report will be useful for:
- Competitive Assessment as well as Comprehensive Strategic Business Analysis
- Assessment of degree of environmental responsiveness as well as strategic orientation
- Gaining access to Key Inputs for Strategic Planning & Decision-Making Process
- Analysis of and Insights into the overall Strategic Blueprint of the company
- Identifying & highlighting areas for Strategic Changes, Adjustments & Realignment
The report would be essential for those having strategic interest in Honda Motor Company Limited and the Global Automotive Industry & will be especially useful for Key Decision-Makers, Top Management of Companies, OEMs, Suppliers, Distributors, Vendors and other Key Players in the Industry Value Chain as well as existing & potential Investors, Industry & Company Analysts & those associated with the Industry or the Company.
5. Report Highlights: Visual Representation/Orientation with a Slide based Architecture
The report is comprehensive yet concise & compact at the same time; is custom-built for meetings & presentations with visual representation & orientation based on a slide architecture, being built on the Microsoft PowerPoint platform; in addition, to being a ready self-reckoner as well as a quick reference guide driving, enabling & ensuring prompt and informed decision making.
5. Key Takeaways: Enhances Scope of Utilization/Application with Visual Representation & Saves Time
This PowerPoint architecture based report provides high readability & ease of navigation and saves significant amount of time by saving the end-user the effort of sifting through voluminous pages of text besides enhancing the scope of retention, utilization & application of analysis with visual representation and incorporation of relevant images to support & supplement the analysis.
Analysis of Key Strategies & Plans:
Product Portfolio Strategies & Plans
Service Level Strategies & Plans
Technological and R&D Strategies & Plans
Market Specific Strategies & Plans - Traditional & Emerging Markets
Corporate Strategies & Plans
Sales, Marketing & Branding Strategies and Plans
Manufacturing/Production Strategies & Plans
Business Growth Strategies & Plans - Organic & Inorganic
Financial Strategies & Plans
Product Portfolio Strategies & Plans
Service Level Strategies & Plans
Technological and R&D Strategies & Plans
Market Specific Strategies & Plans - Traditional & Emerging Markets
Corporate Strategies & Plans
Sales, Marketing & Branding Strategies and Plans
Manufacturing/Production Strategies & Plans
Business Growth Strategies & Plans - Organic & Inorganic
Financial Strategies & Plans
