STRATEGIC MANAGEMENT OF HONDA CORPORATION

Strategic Management of Honda Corporation

Strategic Management of Honda Corporation

Introduction

Honda throughout its existence remained very important aspects of an international character. This is reflected in the compromise between Honda and markets and economies where the company operates. Honda's philosophy indicates to produce where there is market demand. Thus, by integrating local customs and culture, and by using managerial resources of the locality, Honda has been able to better serve the people and institutions in places where it operates.

The products that reach the specifications of each of the four markets Honda (America / Europe, Middle East and Africa / Asia Pacific / Japan) are developed, produced and sold in each region. And as the local orientation of the company serves local customers, its international network enables it to give the exchange of ideas and information among employees, the above is to ensure high levels of creativity in technology and Honda products (Wall, 2010, 9-14). The company has always had a proactive direction, where from their excellent products were launched without fear of unfamiliar markets. The philosophy and the commitment assumed by members of the company have been carried out largely by the ability of management to integrate the areas and levels of the company and clearly mark its course. In its early days with Honda and Fushisawa, formed a team that is balanced perfectly and this was largely the reason why Honda lived rapid growth. Today therefore, Honda seeks global expansion and reached an annual production volume of 1,000,000 units (cars) its ability to adapt and even anticipate market requirements (Wall,2010,9-14).

The Concept and Theories of Competitive Advantage

The question of the origin of the performance of firms has been the subject of numerous theoretical and empirical researches within the framework of industrial analysis. Strategic positioning and industry structure are the two principles developed by Michael Porter (1986, 1988) in line with the SCP paradigm. He argues that these principles play an important role on the performance of firms through the competitive advantage (Spulber,2007,37-67).

If for Porter (1986, 1988) a firm is seen as a collection of exclusive activities for the supporters of the Resource Based View (RBV), the firm is seen as a collection of unique resources. This approach has developed in the mid eighties to stand out from the industrial analysis dominated by the work of Porter. Although today the paternity of the RBV is often attributed to Barney, Wernerfelt was the first to have laid the foundation "modern" whose origins date back to the work of Penrose (1959) on firm grow (Spulber,2007,37-67).

To position itself effectively in its industry a company must decide on the competitive strategy to follow. Porter (1985), in his second influential book, argues that there are three generic strategies companies must follow to establish a lead in their market: differentiation, cost leadership, and focus strategy (Porter,1998,25-36). The differentiation strategy means that value is provided to customers through the unique features and characteristics of a firm's products or ...