INTRODUCTION:
Honda is a world famous manufacturing company which manufactures Motorcycles, Automobiles, Personal Aircrafts, Jet Engines, Power products etc. The company was founded by Soichiro Honda who was born in 17 November, 1906 in Japan (Iwata district, Komyo village).
Fig.: Mr. Soichiro Honda (The founder of Honda Company).
BUSINESS DESCRIPTION:
Although the people of Bangladesh have long understood Honda as a motorcycle with two wheels. But Honda company actually manufactures many other things besides making motorcycles.
The products manufactured by Honda Company are:
- Motorcycle
- Automobile
- Jet engine
- Personal aircraft
- Marine Outboard Motors
- Power Products etc.
Fig.: Different Products of Honda Company.
STAGES OF BUSINESS DEVELOPMENT:
EARLY STAGE:
The company first established in 1946 with the name of ‘Honda Technical Research Institute’ by Soichiro Honda.
In 1946, Honda Technical Research Institute was established.
In 1947, A-type engine was first introduced in Honda branding.
In 1948, Honda Motorcycle Company Limited was established. Then the first complete-bodied motorcycle was produced named ‘Honda Dream’.
In 1953, Honda Power Products was first introduced by manufacturing H-Type Farming Engine and F150 Tiller.
In 1958, made their world famous motorcycle model Honda Super Cub.
Fig.: Historic Honda Super Cub Model.
GROWTH STAGE:
Honda Company established American Honda Motor Co. Inc. in 1959 in America. Then they introduced their first overseas motorcycle production plant in Belgium.
Honda manufactured their first automobile in 1962 by releasing their first sport car S500 model.
In 1964, Honda became the largest motorcycle manufacturing company in the world.
Fig.: American Honda Motor Co. Inc. (in 1959)
EXPANSION:
Honda started their first Aircraft Research in 1986 and established Honda Aircraft Company in 1995.
In 2000, Honda manufactured their first human robot ASIMO.
In 2012, the total sales of Honda power products were more than 100 million units. and in 2014, the total sales of Honda motorcycles were more than 300 million units.
In 2014, Total sales revenue was 114.66 Billion USD. And in 2018, it was 142.95 Billion USD.
In 2021, the total sales revenue was 127.75 Billion USD. And in 2022 it was decreased to 121.32 Billion USD due to Russia-Ukraine War and global inflation.
from 1948-2023 Honda sold about 440 million units of motorcycles.
They have 35 manufacturing industries in 21 different countries. And Total production is 20 million units per year.
FUTURE PLANS:
- Making more power efficient engines.
- Lowering the carbon emission.
- Special emphasis on renewable energy.
- Providing best quality with minimum cost.
- Using of Artificial Intelligence (A.I) in large in suitable area of fields.
- Manufacturing more attractive models.
MARKETING AND ADVERTISING:
Honda conducts their marketing and advertising through different types of media channels. i.e.
- Television: through TVC (Television Commercials).
- Online media: using online media.
- Print media: through print medias like newspapers.
- Social media marketing: using social medias such as facebook, instagram etc.
- Others digital marketing platforms.
- Sponsorship: Honda gives sponsorship to promote their company.
- Customer Engagement: by promoting different events and community activities.
- Environmental Initiatives: They give their commitment to responsibilities to environment. Thus, Honda promotes its eco-friendly products and other initiatives.
FINANCING:
MANAGING OF INITIAL FUNDING:
The founder of Honda company (Soichiro Honda) managed his initial fund by selling his workshop which was damaged by World War II and also by tremendous earthquake.
STAGES OF FUNDING:
In course of time, Honda is a publicly-traded company now-a-days. That means, ownership of this company is distributed among the different shareholders who have purchased shares of this company’s stock.
The ownership is distributed in various institutional investors, individuals, and mutual funds.
Honda Motor Company (HMC) Funding Overview:
- Mutual Funds: 1.68%
- Other Institutional Investors: 2.85%
- Public Companies and Individual Investors: 95.47%
UNIQUE SELLING PROPOSITIONS (USP):
- Reliability
- Build quality
- Durability
- Fuel efficiency
- Lower carbon emission
SUCCESS STORY:
The journey of Honda company started in 1946 by the hands of Soichiro Honda. He first started the Honda company with the proceeds from the sale of his damaged workshop during the World War II and the devastating earthquake.
In 1947, Honda produced A-type engine. Thus he started manufacturing motor bikes. Gradually the motor bikes manufactured in his company became very popular. Thus, within a short period of time, Honda Company became the world’s top motorcycle manufacturing company.
Gradually they started automobile production and established their top position in the automobile market as well.
Later they started manufacturing personal aircraft, jet engines from 1985 and became the world’s top manufacturer of personal aircraft.
In 2000, they developed the first humanoid robot called ASIMO.
In this way, they have maintained their success and strengthened their position in the world as the world’s one of the best motorcycle, automobile, personal aircraft manufacturers.
In 2022 (Jan-Oct), they sold about 14.5 million units of motorcycles and had 28% global market share.
In 2020-21 financial year, Honda produced more than 15 million motorcycle units.
In 2020-21 financial year, Honda produced more than 4.5 million of automobile units. And placed 6th largest automobile manufacturing company.
In 2021-22 financial year, Honda manufactured more than 4.46 million automobile units.
HUMAN RESOURCE (H.R) & BOARD OF DIRECTORS:
- Seiji Kuraishi (Chairman)
- Toshihiro Mibe (Director, President and Chief Executive Officer)
- Shinji Aoyama (Director, Executive Vice President and Representative Executive Officer)
- Noriya Kaihara (Director, Executive Vice President and Representative Executive Officer)
- Asako Suzuki (Director)
- Masafumi Suzuki (Director)
- Kunihiko Saka (Director)
- Fumiya Kokubu (Director)
- Yoichiro Ogawa (Director)
- Kazuhiro Higashi (Director)
- Ryoko Nagata (Director)
- Katsushi Inoue (Executive Officer)
- Keiji Otsu (Executive Officer)
- Masayuki Igarashi (Executive Officer)
- Kensuke Oe (Executive Officer)
- Manabu Ozawa (Executive Officer)
- Hironao Ito (Executive Officer)
- Eiji Fujimura (Executive Officer)
- Ayumu Matsuo (Executive Officer)
- Minoru Kato (Executive Officer)
- Yutaka Tamagawa (Executive Officer)
- Kazuhiro Takizawa (Executive Officer)
- Takashi Onuma (Executive Officer)
EMPLOYEES:
More than 2 lac employees worldwide.
Fig: Employees of Honda Company.
SWOT Analysis:
STRENGTH:
1. Efficiency in manufacturing of engine – company’s core product.
2. Various products portfolio.
3. Brand value.
4. Strong position in motorcycle markets of asia.
WEAKNESS:
1. Dependence on America (mainly North America) to make most of the revenue.
2. Investments in research and development (R&D) which is leading to innovative products is not sufficient.
OPPORTUNITIES:
1. Increasing government dictations.
2. Frequency and timing of new model releases.
3. Fuel efficient products are increasing the demand.
THREATS:
1. Competition is increased.
2. Rising dollar exchange rate.
3. Natural calamities.
CONCLUTION:
Honda is a world renowned company for many years. It has been in the hearts of people for almost 8 decades through its quality of products and services. It currently holds a 28% market share in the global motorcycle market and holds its position as the 6th largest automobile company in the automobile market.