Table of Contents
CASE SUMMARY 0
PROBLEM STATEMENT 1
ALTERNATIVE STRATEGY 5
EVALUATION OF ALTERNATIVES 7
BEST STRATEGIES AND JUSTIFICATION 14
In early 1950s, 50 competitors were fighting for position in the Japanese motorcycle market Honda’s was the number two competitor with a market share of 20% and Tohatsu was the number one In the short period of 5 years life spans, Honda’s successful to emerge as the undisputed leaders of the Japanese motorcycle industry by the aggressive strategies which was a classic example of aggressive Kaisha or Japanese corporate tactic and which have the right to proclaim themselves ichiban or number one in the country, if there was a losses in this battle often meant corporate death. However, Tohatsu took a more conservative approach to the competitive battles in Japan and grew at a slow and controlled rate. Honda successfully increased its profitability and financial strength by borrowed heavily. Finally, Tohatsu has been destroyed in February 1964 because it was filed for bankruptcy due to decreasing in sales, exhausted funds and unpaid bills.
After 10 years periods, Japanese become more interested in purchasing luxury goods over durable goods, growth in the Japanese motorcycle industry slowed. Honda starts to diversify into automobiles by transfer the available cash and technical capabilities from the motorcycles towards its automobiles business. At the same time, Yamaha saw an opportunity to attack and take territory in the motorcycled market by borrowed a chapter from the Ninja warriors and decide a sneak attack by quietly increasing its motorcycle production capacity in Japan. Lastly, Honda’s production share declined and the territory that Honda lost went directly into Yamaha hand and Yamaha proclaim itself as ichiban. After the attack from Yamaha, Honda’s continues to exhibit a preoccupation with autos as it’s began investing in large scale automobiles production in the...