Competitive Position and Cross Culture Management: of Honda Motors - Case Study Example

The paper "Competitive Position and Cross Culture Management: Study of Honda Motors" is a perfect example of a case study on management. Honda motors had been a known name in the industry since 1959 with its motorcycles, automobile, and powerful engines and are known as the world’s largest internal combustion engine (Honda, 2015). With revenue of 11,842.5 billion JNY ($118.2 billion) and net income of 574.1 Billion JNY ($5.7 billion) in 2014, the company has been one of the leading car manufacturers in the world (Global business browser, 2015).

As is shown in the bellow Table 1, Honda’s main markets include North America, Europe, Japanese, and Asia. Among them, the revenues generated from Asia account for 73% of its total revenues in 2014. However, the European markets have seen a decline in sales largely due to the economic recessions after the global financial crisis and European debt crisis. Nevertheless, the European Union and US Senate’s declaration of rebate in price and taxes for every environment-friendly vehicle purchase should boost the trends in near future.

Table 1: Revenues of Honda over the last five years Net sales : Yen (millions) FY2010 FY2011 FY2012 FY2013 FY2014 Japan 70,461 70,244 72,915 72,949 79,455 North America 103,956 96,664 97,306 112,176 141,563 Europe 124,665 103,890 96,146 86,424 102,634 Asia 461,067 577,669 579,562 667,473 868,464 (Source: Economic times, 2015) The projected value of the industry is to reduce in the longer run from a growth of 4.2% at an average in 2013 while by 2018 it is projected to reduce by 37% (Hondanews.com, 2015).

The future day car sales are going to be dependent upon the new hybrid technologies (Alternative fuel and Zero Pollution Vehicles), those competitors have already started investing into. Nissan’s Leaf, Tesla’s Model S, BMWs 528i Hybrid are few to name. Manufacturers have taken various steps to gain market size and develop potential towards an eco-friendly vehicle that gives the best value and comfort to users. Further, the governments are promoting non-polluting technologies for a sustainable environment, in various nations.

Again the cost and distribution would ensure market growth potential, which Honda needs to innovate and invest in to stay competitive in the future too. Therefore the strategies that Honda devised to stay valid in such a global market are studied where suitable recommendations are developed as well (MarketLine, 2014).