Reference no: EM132563715

Case Study: Honda: Smaller Bikes, Bigger Wins Honda's intended strategy was to enter the U.S. market with motorbikes similar to the bikes that British manufacturers like Norton and Triumph were exporting to the U.S. in the late 1950s. Norton and Triumph had a tradition of making large, powerful road bikes that spanned several decades. Honda had no such tradition in mass-producing these larger bikes. Honda had gained experience on the race circuit, which had built its confidence that it could compete with British manufacturers. Honda's experience in motorcycle production was centered around smaller bikes in the 50cc range that were used as delivery vehicles in Japan. The 50cc Supercub had been a very successful model for Honda in Japan. Honda's first large bikes (250cc and 305cc, which would be small by today's standards) in the U.S. were plagued with quality problems. They simply weren't built to stand up to the rigors of U.S. highways. Many of the bikes had to be sent back to Japan because of quality problems. For a time, it looked as if Honda's attempt to enter the U.S. market was doomed to failure. Honda had planned to introduce a mix of large and small bikes in the U.S., but their focus was to be on the larger bikes. During the early months of Honda's entry into the U.S., company executives were riding some of the smaller bikes around Los Angeles as they were setting up operations. A buyer from Sears saw the small bikes, asked the men where they got them from, ordered some from Honda, and sales of the bikes were brisk. Honda soon learned that the smaller bikes were to be the source of early success in the U.S. Of course, Honda expanded into the larger bikes as brand recognition grew. After a few short years, Honda introduced its first automobile in the U.S. market in 1963. The company has since become one of the top motor companies in the world. Source: Pascale, 1989, Honda A & B Cases, HBS Publishing).

With reference to the above-mentioned case study, critically discuss 3 lessons that can be learned by strategists/managers.