Honda Company
Even as early as 1985, according to J.D. Power & Associates, “Honda owners enjoyed the country’s highest customer-satisfaction rating, edging out even luxurious Mercedes-Benz”. Two themes have contributed to Honda’s success in the United States: the company has seized on opportunities in the U.S. market and it has also tailored its practices to fit American culture. Upon entering the United States, Honda formed the American Honda Motor Company in June 1959 to run its American operations. After a slow start in the United States market, “Honda built a reputation as a premier maker of small motorcycles”. The company’s U.S. sales did not see a sharp increase, though, until 1963, when Grey Advertising, a large national advertising agency, launched an ad campaign with the following theme. All of the American automakers were plagued with efficiency and quality-control problems, and Honda saw with the success of its Civic and Accord that Americans consumers were willing to consider Honda products over American alternatives. Here, Honda saw an opportunity. The motorcycle plant was so successful that within a year, Honda decided to begin automobile assembly in Marysville as well. The auto factory opened in 1982, producing the popular Accord model and making Honda the first Japanese automaker to assemble cars in the United States. Other strategies that Honda implemented—mainly in the person of Irimajiri—were discussion groups in which associates would give input for improving various aspects of production. Honda used unique marketing strategies to position itself as a motorcycle manufacturer—and later a car company—that would be appealing to a wide variety of Americans. With its advertising campaign in the 1960s, Honda repositioned motorcycles from the leather-jacket riders to pedestrian consumers. Later, with its automobiles, Honda sold an affordable, environmentally clean and higher-quality alternative to Detroit’s offerings. Finally, Honda introduced a managerial strategy for its United States production facilities that was unique not only to Honda’s Japanese plants but also to American auto plants in general. Honda established an egalitarian corporate culture in which Honda associates were free to contribute input directly to management and shift their responsibilities readily to adapt to the plant’s needs on the fly. After starting as a small Japanese motorcycle manufacturer, Honda is now the envy of carmakers large and small the world over.
Even as early as 1985, according to J.D. Power & Associates, “Honda owners enjoyed the country’s highest customer-satisfaction rating, edging out even luxurious Mercedes-Benz”. Two themes have contributed to Honda’s success in the United States: the company has seized on opportunities in the U.S. market and it has also tailored its practices to fit American culture. Upon entering the United States, Honda formed the American Honda Motor Company in June 1959 to run its American operations. After a slow start in the United States market, “Honda built a reputation as a premier maker of small motorcycles”. The company’s U.S. sales did not see a sharp increase, though, until 1963, when Grey Advertising, a large national advertising agency, launched an ad campaign with the following theme. All of the American automakers were plagued with efficiency and quality-control problems, and Honda saw with the success of its Civic and Accord that Americans consumers were willing to consider Honda products over American alternatives. Here, Honda saw an opportunity. The motorcycle plant was so successful that within a year, Honda decided to begin automobile assembly in Marysville as well. The auto factory opened in 1982, producing the popular Accord model and making Honda the first Japanese automaker to assemble cars in the United States. Other strategies that Honda implemented—mainly in the person of Irimajiri—were discussion groups in which associates would give input for improving various aspects of production. Honda used unique marketing strategies to position itself as a motorcycle manufacturer—and later a car company—that would be appealing to a wide variety of Americans. With its advertising campaign in the 1960s, Honda repositioned motorcycles from the leather-jacket riders to pedestrian consumers. Later, with its automobiles, Honda sold an affordable, environmentally clean and higher-quality alternative to Detroit’s offerings. Finally, Honda introduced a managerial strategy for its United States production facilities that was unique not only to Honda’s Japanese plants but also to American auto plants in general. Honda established an egalitarian corporate culture in which Honda associates were free to contribute input directly to management and shift their responsibilities readily to adapt to the plant’s needs on the fly. After starting as a small Japanese motorcycle manufacturer, Honda is now the envy of carmakers large and small the world over.
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