Question

Please identify the problems or shortcomings that Honda Motors Company has and make strategic recommendations with actionable steps?

Answer 1

Honda Motors Company is Tokyo, Japan based automobiles company. It is a well known company for the production of two wheeler, four wheeler, engine and aircraft. Company was founded in 1948 and has branches worldwide.

Problems or shortcomings with Honda Motors Company -

1. Lack of supply of resources - Today Honda facing the issues of lack of supply of resources. As Honda has manufacturing units in Japan, Thailand, China and Malaysia but after earthquake in Japan and tsunami and flooding in Thailand in 2011 totally destroyed the infrastructure of both these plants and because of this manufacturing of products totally stopped for many months. Therefore, Honda lack of resources and thier competitors companies got chance to sell more cares.
2. Market Competition - The main competitors of Honda in the market are Toyota, BMW, Nissan etc. All these company's trying to do best in the market. Honda is far away from the market leader Toyota.
3. Low Budget - One of the major problem faced by the Honda is lack of funds. Before earthquake and tsunami struck in Japan and damaged the automotive infrastructure, Honda struggling with shortage of its products for months. Intense competition and Natural disasters are the factors that affect the budget of Honda.
4. Recalling of Honda's new brand - Another major problem facing by Honda is the recalling of its new brand Odyssey van. The value of a specific brands affect by recalls and the company take a long time to recover from the damage to its reputation.

Solutions of some major problems of Honda are:

1. Lack of Budget - For any company Low budget is the serious problem as it affects the production of the company. To cope up with the problem of low budget Honda motors should now introduce new technologies and products in the market. They should identify the customers are wishing for the products and then realize them at very fast pace.

Honda Motors two innovative products are Honda's Jets and Robots. They should introduce more fuel efficient cars and electric vehicles as they are the top priority of the people due to lack of natural resources.

2. Recalling of Brand - Due to recalling of new brand Odyssey van, Honda recalled 344,000 odyssey vans due to complains of their customers. Now Honda should make suitable changes in the brand and make it better that there would be no complaints after that. Not only in this brand but in production also and should make their quality their standard.

Fuel efficiency - Honda not only designing varied models but insisting on fuel efficiency. The concept of Hybrid vehicles has launched by the Honda to save the customer pocket while enjoying luxury.