Honda Motor Company Ltd is a Japanese multinational, manufacturing and selling a range of vehicles throughout the

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Question:

Honda Motor Company Ltd is a Japanese multinational, manufacturing and selling a range of vehicles throughout the world. Its mission statement is: “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.”

Honda has four main product groups: Honda automobiles, Acura automobiles (luxury, performance, and racing cars), Honda motorcycles, and Honda aircraft (twin-engine jets for 6 or 8 passengers). It also produces motors for other products such as small generators, lawn mowers, small boats, etc.

While Honda has successfully produced hybrid vehicles for many years, it has yet to find success in the market for fully electric vehicles.

Honda’s vehicles are sold through third-party dealerships around the world. Interestingly, these dealerships offer their customers loans from Honda’s financial services business. This generates 19% of Honda’s revenue and is the most profitable part of Honda.

Required:

(a) Discuss Honda Motor Company Ltd’s strategy. E.g. Apply strategy concepts. Use your own words.

(b) Discuss how Honda Motor Company Ltd may use cost- and market-based pricing to manage revenue and implement its strategy. Use your own words.