VIRO ANALYSIS OF HONDA
not only find its strength in core competence but also in its supply chain management.
Honda maintains a cordial and strong relationship with its local and
international part suppliers and manufacturers.
R department is a very rare capability in which it possesses. Honda is
the only international auto manufacturer that’s has the most R&D facilities
in America. Honda operates 11 R&D facilities within the U.S. it has access to latest technology and
innovation due to its stockpile of patents and trademark.
The cost of
production in Honda is very costly which make sit difficult to imitate. Honda has
a very concentrated manufacturing plant on virtually every continent. Its
supply chain management along with its IT department are very efficient in the
distribution of the auto product at an affective rate.
motorcycles are easily substitutable. Firstly, they do not have a particular
culture attached with their brand. For example, the power sport motorcycle is
very similar to other brands such as Yamaha and Kawasaki.
Honda makes use of its manufacturing capabilities and
culture of innovation to create lightweight, high-revving and reliable engines
which are used in various end products such as generators, marines, vehicles
and yard-care products. Numerous Credits has been given to Honda motors
as the most innovative company in terms of cutting edge technologies such as
(the first fuel cell vehicle, the first hybrid vehicle, the first electric car,
the first natural gas vehicle, fuel efficiency and robotics).
Honda has a sustainable competitive advantage in
its engineering design, research and development and brand image. A major core
competency of Honda is its engine. The quality of Honda’s engine makes it
unique because of its vast usage. The engines are applied n cars, motorboats,
planes and other various technologies. (Bhasin 2016).
In 1974, Honda was the first company at that time
to comply with the strict U.S emissions regulations on gasoline engines and
also manufactured cars without catalytic converters with its CVCC (compound
vortex controlled combustion) engine. ( Bauner 2011).
Honda has been able to deploy its core competence
by capturing areas in America where it’s required and requested by the
In North America, Honda applies its core competence
to sell light trucks, reduce the size of the mid-sized SUV and increase the
number of production lines for Honda civic while in South America it deploys
them by Producing and selling. Flexible fuel (FF) versions of both motorcycles
and automobiles that are compatible with bioethanol.
Honda is an expert in dealership management
stemming from motorcycle business. They are also very efficient at product
In June 2017, Honda revealed its logo for its fuel
cell system manufacturing LLC. Honda had earlier supported the First Element
fuel with US$13.8 million to build more hydrogen refuelling stations in
California (Honda 2014). This idea will help to increase the number of public
hydrogen fuelling infrastructure in support of the introduction of fuel cell
electric vehicles. According to Steven centre, the vp of Honda’s
environmental business development office, he stated that ‘First
Element Fuel is providing a vital piece of what is needed for a successful
launch of fuel cell vehicles,’ (First element fuel 2014). He also stated that
‘Through this collaboration, First Element will enable our customers to
experience hydrogen refuelling that is as reliable, convenient, and
consumer-friendly as the vehicles are.’
these recent developments, it can be assumed that the sales of the hydrogen
motors produced by Honda will beat its expectations. It is generally believed
that consumers are willing to try new things (technology). The collaboration
made with the first element fuel company has undoubtedly paved a new stream of
income for Honda. Honda is well known for its breakthrough in technology, they
are also known as the first mover. Their technological advancement and
creations are made out of the possible solution for the future making it the
most reputable automobile companies in the world