The competitive good thing about Honda Corporation

There are several factors that can donate to a firm's capacity to be competitive in its industry. Building blocks of your competitive edge include efficiency, quality, innovation, and responsiveness to customers. A firm with a competitive edge may experience higher gains than the common profit on the market while competing for the same customers. In the case of Honda, this is true. Honda has many distinctive competencies based on its tool and capacities that allow it to have a competitive benefit in the auto processing industry. Three areas that provide Honda a competitive benefits in the automobile industry include Honda's engineering and design, research and development, and brand collateral. In order to determine whether Honda's competitive benefits in these three areas is lasting, we evaluate and apply each someone to the VRIO construction.

Honda is exclusive for the reason that its corporate composition is constructed of three companies. Honda Research and Development manages research and development of impressive products for the company. Honda Motor produces, offers, and services the all Honda products. Honda Engineering develops manufacturing techniques, systems and equipment used to create all Honda products. Honda's superior design capability has empowered it to construct high-quality reliable products and in addition has added value to the Honda brand. Honda's useful manufacturing processes also have kept development costs low in accordance with other automakers in the industry (Snipes 2008). In terms of value, Honda excels at using its engineering experience and design skills to build reliable cars that simply work. This capacity is quite valuable to the company and its own industry. Although valuable, Honda's engineering and design is not rare, because there are other car producers with excellent executive and design features. For car manufacturers who aren't already competitive with Honda in its executive and design capacity, it might be very difficult to bridge the distance to competitiveness by imitating Honda's success. Therefore, Honda's anatomist and design is inimitable. The final question to ask is whether Honda is planned, ready and in a position to take good thing about opportunities via its anatomist and design. Honda's firm is unique in its management framework for the reason that it differs from most general public U. S corporations. A board comprising 21 directors runs the company, which allows for faster decision-making and execution in new product design (Whiston 2010). All of the company's sections are aligned to consider good thing about design breakthroughs, which leads to a finish that its engineering and design include sustainable competitive edge.

Honda's give attention to research and development is highly valuable and places it at the forefront of technology. This enables the company to include scientific breakthroughs and progress into its extensive type of vehicles. Honda also offers a very higher level of investment in research and development, which is not common in the automobile industry. Honda's level of commitment to research and development is also very rare compared to its industry peers. Honda owns a strong first mover advantage over many competitors in this area as a result of advanced aspect of its research. Competition not actively chasing their own research find it difficult to capture up to Honda, therefore the company's R&D is considered inimitable. Organizationally, Honda will keep the R&D group individual from other divisions within the business giving its clubs freedom to develop new systems for the company across the table. Honda's unique structure and its level of dedication to advanced quality research make its research and development a ecological way to obtain competitive gain in its industry.

Honda's brand equity can be an extremely valuable way to obtain its competitive advantages since individuals are eager to pay a premium for Honda's vehicles due to electricity of its brand and its relationship with quality and value. Because of this, it offers led Honda to have best-in-class repeat purchase rates. Honda has repeatedly been placed one of the world's top 20 most effective brands according to a study conducted by Business Week Newspaper (Ferret 2006). The Honda brand ranked 19th on the international list of one hundred most effective brands in 2005, getting a brand value of $15. 8 billion. Honda has quite strong brand commitment as evidenced by the strong repurchase rate for Honda automobiles relative to the industry norms. 65% of Honda customers purchase another Honda automobile in comparison to only 48% for the industry (Ferret 2006. Although it is highly valuable, Honda's brand collateral is not rare. Toyota also offers strong brand equity in the same industry, but recent recalls may have deteriorated its value. Because Honda's brand collateral has been built over an extended period of time, it might be very difficult for competitors to imitate. Honda's reputation for reliable cars was not acquired over night, rendering it highly inimitable. Honda calls for advantages of the pros given by its strong brand by using it as the flagship brand for the business. By assisting its brand value with superior anatomist, design, and research and development, Honda can rely on its brand collateral as a source of sustained competitive gain.

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