VIEWPOINT TAKEN
Honda Cars Philippin Philippines es Inc. (HCPI) is a subsidiary of of Honda Motor Co., Co., Ltd. Of Japan Japan,, Duly Duly incor incorpo porat rated ed in Oc Octob tober er !!", !!", co#pl co#plet etin$ in$ its plant plant and start start production of co#pletely %noc%ed&do'n units in !! and capturin$ a stron$ foothold in the passen$er car sales #ar%et in !!. In !!* and !!+, HCPI 'as a#on$ the business orld-s op "" co#panies. HCPI is in the passen$er car and sports utility /ehicle in the co##ercial /ehicle industry. he co#pany product line includes the follo'in$0 Honda 1ccord, Honda ci/ic, Honda City, Honda C2&3, Honda Le$end, and Honda Odyssey. HCPI offers a 'ide array of /ehicles 'hich include a#on$ others passen$er cars, sport sport utilit utility y /ehic /ehicles les and and e/en e/en tricy tricycle cle,, #a%in #a%in$ $ all all these these produc products ts a/ail a/ailab able le throu$h an e4tensi/e net'or% of authori5ed Honda Dealers all o/er the country. he he #anuf #anufact acturi urin$ n$ plant plant is locat located ed in 6ta. 6ta. 2osa 2osa La$u La$una na in 7, 7,""" """ s8.# s8.# property, e#ployin$ """ associates as of October !!. he stoc%holders of HCPI HCPI are are the the foll follo' o'in in$0 $0 Hond Honda a Moto Motorr Co., Co., Ltd. Ltd. (9*: (9*: shar share) e),, Mits Mitsub ubis ishi hi Corporation (7:share), 1yala Corporation (;:share) and 2i5al Co##ercial
TIME CONTEXT CONTEXT he case co/ered years !!*&""" but #ay still be applicable up to present.
I.
II.
STATEMENT OF THE PROBLEM
he #ain proble# of this case study is ho' Honda Cars Philippines Incorpor Incorporatio ation n can sustain sustain their their present present #ar%et #ar%et position position to increas increase e #ar%e #ar%ett share share in passe passen$ n$er er car car #odel #odels s e/en e/en if there there is a %eene %eener r co#petition due to other co#petitor-s dyna#is# and a$$ressi/eness in ter#s of sales.
hat strate$ic #a=or initiati/es are re8uired of HCPI to dra#atically outperfor# outperfor# other players in the industry in the li$ht of chan$in$ chan$in$ #ar%et conditions>
OBJECTIVES Long term: o increase #ar%et shares in the passen$er car #odels. o sustain its #ar%et position e/en if there is a %eener co#petition .
Short Term: o create an e4tensi/e ad/ertise#ent for custo#er a'areness and pro#otion of the products.
III.
AREAS OF CONSIERATIONS SWOT ANAL!SIS INTERNAL ENVIRONMENT ". Strength#
Hi$h and po'erful research and de/elop#ent (2?D) Inno/ation
$. We%&ne##e#
Cost structure of Honda is hi$h as co#pare to other auto#obile #anufactures 1part fro# @issan ? oyota, Honda re8uires pri/ile$ed purchase deposit Honda focus #ore on international deposits as co#pare to do#estic deposits Ci/ic #odel is consider s one of the #a=or 'ea%ness for Honda Co#pany Honda products are ter#ed as inoffensi/e in ter#s of style and desi$n Prices for non&lu4ury /ehicles are far hi$h as co#pare to other #anufactures
EXTERNAL ENVIRONMENT '. O((ort)n*t*e#
A#er$in$ #ar%et is one of the best opportunity for this co#pany 3arious #odels are there 'hich caters the lo'er se$#ent I#pro/ed inco#es of #any Bilipinos.
Healthy econo#ic indicators for i##ediate international trade barriers by $o/ern#ent
years
rela4ation
of
+. Thre%t#
IV.
One of the #a=or threat is the econo#ic slo'do'n 1ll the e4ternal chan$es for instance ta4es politics as 'ell as $o/ern#ent are the #a=or threats for Honda Co#pany 1nother threat is the lo'er cost co#petitors Price 'ar is also consider as an i#portant threat for this co#pany Oil prices are contributin$ a lot to'ards the loss of Honda co#pany 6econd #o/ers are the #a=or threat for Honda Co#pany 6ubstitutes products are the #a=or threats for the Honda Co#pany Acono#ic crisis in the country #ay arise. Continued increased of $asoline prices. 2eluctance of ban%s to lend the pri/ate sector in spite of the decline in interest rates. 6tron$ probability of #anufacturin$ capacity $lut for passen$er car #anufacturers due to bri$htened prospects in the entire #anufacturin$ sector. A#er$in$ trends to'ards 63s and 13s.
ALTERNATIVE CO,RSES OF ACTION
Ma%e an inno/ati/e ad/ertise#ents and pro#otions that 'ill create an i#pact or attraction to the buyers and custo#er product a'areness.
A-%nt%ge#:
o reach si$nificantly #ore people to increase custo#er product a'areness. It introduces a ne' product in the #ar%et. It #ay create an e4pansion of the #ar%et. It #ay increase sales. It supports the sales#anship.
*#%-%nt%ge#:
1dded cost Co#pany has to spend a lar$e a#ount on ad/ertisin$. It increases the costs of products Confusion to buyers
Many a ti#e distorted /ersion of reality is sho'n in the ad/ertisin$.
6o#e ad/ertise#ent is in bad taste Boul lan$ua$e and ob=ectionable pictures are bein$ used in ad/ertisin$ in order to attract a particular class.
6earch for #ore suppliers of spare parts of passen$er cars to reduce hi$h costs of spare parts and product pricin$.
A-%nt%ge#:
It #ay lessen or reduce costs of spare parts. It #ay also lo'er product pricin$.
*#%-%nt%ge#:
It #ay be ti#e and effort consu#in$ to search for suppliers instead of doin$ other i#portant #atters. @ot sure of 8uality of spare parts for the ne' supplier of it.
Ma%e an e4tensi/e research and de/elop#ent to create ne' product li%e desi$nin$ a product that 'ill use alternati/e resources li%e electricity instead of oil or product that 'ill be an en/iron#ental friendly.
A-%nt%ge#:
It #ay create ne' #ar%et. It #ay de/elop ne' opportunities. Co#petitors #ay ha/e reached a declinin$ phase if your ne' product is successful. It #ay also increase sales and #ar%et share.
*#%-%nt%ge#:
It can be costly to de/elop a ne' product. May lead to product failure.
V.
RECOMMENATION
Short Term: Create an e4tensi/e ad/ertise#ent Creatin$ an e4tensi/e ad/ertise#ent helps to build sales#anship.
Long Term: Ma%e an e4tensi/e research and de/elop#ent to create ne' product li%e desi$nin$ a product that 'ill use alternati/e resources li%e electricity instead of oil or product that 'ill be an en/iron#ental friendly. Create a ne' product line that is ne' in the #ar%et.
Mar%etin$ strate$y plan should be re/ised De/elop a product that is accordin$ to the nations culture
VI. PLANS / PRO0RAMS FOR IMPLEMENTATION ACTIVITIES
RESPONSIBILIT! OF
RESO,RCES
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