Re: Anyone Need One More Member?

In: Business and Management

Submitted By zohaib1511
Words 423
Pages 2
Threat of new entrants – the higher scarcity cost are, the lower the competition will be from new entrants entering an industry
Power of suppliers – There are no substitutes for the supplier; a supplier has a large enough impact to affect a company’s power
Power of Buyers – The customer has to power to force down prices; the marketing aspect of company can be affected through the customer’s sensitivity of the price changes on a product
Threat of Substitutes – Number of substitute products available in the market; customers can threat companies to go for an alternative product (i.e. cornflakes or frost flakes)
Rivalry among existing competitors – A company who constantly innovate their own product, which holds a competitive advantage within the market; such as Samsung or Apple innovate to keep competition to a minimal and themselves pursue higher in the market
Describe Honda’s strategy in the Japanese market from its founding until 1959. Describe Honda’s strategy in the US market starting with its entry to the market in 1959.

After world war 2, the motorcycle industry in japan was delivering technically inferior products that were unreliable and were not addressing the consumer needs. Honda’s strategy was to supply technically superior products that provided cheap means of transportation. while the competition was risk averse, Honda’s focused on innovation to achieve technical superiority and use price as a competitive edge. This allowed them to not only provide a better product in the current market segment but also enabled them to identify and capture new market segments. Their focus on innovation and utilization of economies of scales allowed them to attain a sustainable growth and realize significant market share.

Huge volumes gave them a competitive cost position and they were able to leverage this position to enter the US market with a differentiated…...

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