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Introduction

2. Background
Honda Vietnam Company is established since 1996 located Vinh Phuc Province in the North of Vietnam. It is the combination of three joint-ventures which are Honda Motor Company (Japan 42 percent); Asian Honda Motor (Thailand 28 percent) and Vietnam Engine and Agriculture Machinery Corporation – VEAM (Vietnam 30 percent). Approaching to Vietnam market, Honda has considered Vietnam is one of the new and potential markets because the major vehicle of Vietnamese is motorcycles. Thus, Honda has targeted their motor vehicle on this market. In additional, Honda is the first firm approach to domestic market and has a high credit of local people (Nguyen 2006).

During the first period after established, Honda Vietnam only sold products imported from Honda Japan. However, after two years, the company has been able to produce motorcycle in this country. Honda Vietnam is become leader in the motorcycle industry and

Technical staffs have trained and had high skills. The following table will show motorcycle market in Vietnam and Honda‟s share (Table 1). Table 1 Motorcycle market in Vietnam and Honda's share (Source: 3.share over 60 percent in domestic market (Nguyen 2006). . Brand and slogan and image of the firm are very good. Variety of products and quality always interested in customers Proper pricing strategy Larger distribution systems and professional training Better service quality Facilities system is modern Opportunity  Large market and have many target market potential  Demand on high motorcycle  Higher rate on economic growth  The average earnings of people increase  Inflation tends to decrease  Policy of Vietnam is promoting international cooperation   Weakness Thread  The prices are of different levels at  Market competition is very strong somewhere and always higher prices  There are variety of others products and  Distributed control system of Honda Vietnam is very poor and loose consumers have many others brands  Some problem machines in previous when make a decision years had decreased images in customer. Internal Analysis Strength        Honda has a lead position in manufacturing and supplying motorcycle Consumers believe and love their products.

the operation ability product. Strengths First mover advantage Honda Vietnam is one of the brands of the parent company at Japan. it has achieved the highest sales record since its establishment . Honda has invested nearly 194 million dollar for product. exports and many other actions in order to services demand of customers and developing of industry nation. The result of selling. So. Besides that. the source component produced from the relevant Honda helped Honda Vietnam can fitting the product with scale and modern.75 million motorcycle and rising eight percent compare with the previous year. It has foundation of the biggest motor cycle in the world. In 2009. the total motorcycle reached 2. In another face. Lack of indication of interest in customer care..1. there are come many countries such as: Honda Italia. exhaust air flow. Honda China…also the joint venture strong. transfers of technology. During ten years. Honda Vietnam has inherited by the parent company. the one face.43 million motorcycle. Besides that. Strong product development Company has provided quality product with the most of sensible price and interested in safely customers. variety product and design. the approximately sixty percent. Honda Vietnam with the advantage about invest source rather big (over 350 million dollar) and has invested the million dollar into sewage disposal plant. The revenue in 2009 reached 1. The target market also has rising. competed price and friendly with environment. development training. Strong Brand Name With slogan of Honda “I love Vietnam” as message confirm policy tend to customer Honda‟s product pressed on enduring. Honda Thailand. Honda is leading product and consume about the amount of motorcycle sold in market.  International economic integration 3.

Firstly. motorcycle market has growing in Vietnam. for developing countries as Vietnam. The newest problem has Lead‟s motorcycle price. Thirdly. The statistic of Honda Vietnam. FDI is the fastest way to accumulate the capital source with the purpose of implementing strategic missions of the country. Specially.3. profit and company has loosing potential . the control distribution system of Honda still lull and no control price product. As a result. the disorder price has only weakness point of firm. many potential customers have given up buying intention Honda‟s product. the governments of these governments had changes in economic policies with the aim at attracting foreign direct investment. The result of this problem. It has created to material price variance about some million Vietnamdong. Secondly. Opportunities Threat There are many competition Market large and target market potential The statistic of government in 2009. However. The assess of “disorder price” in the market has brought many profit for Honda company. The prices are of different levels between firm‟s price and market. the customer services of firm have lowed and not clearly about prices cause to increased prices.3 percent increased GDP in 2009. Weakness Price problem Recently. 6. (bank 2011). Vietnam have more hundred million people and this nation have young population and people focus on moved by motorcycle. a great deal of FDI has invested into Vietnam.8 percent in 2010 and reached fastest speed in recently three years. lack of interested of demand on customers.2. It reached 2. It‟s make many chance for foreign enterprises and nation enterprises. That is only present customer After facing above. the customers has dissatisfied with price of product. In 2009. It is shown in the reality that in recent years. such as developing the economy as well as hunger removal and poverty reduction.9 million motorcycle Analysis of market in Vietnam a/ Market information ( Politics and Environment) Politics: Vietnam is also process of rapid development with the growth rate of 5. Today foreign direct investment is considered to be one of the most popular the types of investment at developing countries.

Motorcycle industry of China is very develop and as the result of Chinese motorcycle . It has very successful with two product Super Dream and Future model and kept about 60 percent market share (Nguyen 2006) Vietnam is nearly China about the geographical distance. In the process. For new associates. Training programs are continuously provided to associates soon after they enter the Company so that they can perform their duties in consideration of the environment (http://www. Honda provides them with the environmental training programs. Immediately after entering the company.Environment Honda is one of the organizations that contribute the most to environment. this two countries have together border. Although built up brand at Vietnam but most of managers come from Japan and they have many experiences in working at many nations in the region. this training program helps them deepen their understanding of Honda„s basic policy towards the environment. they can increase their understanding of the environmental measures Honda is taking in its manufacturing process. part of Honda„s training curriculum. To help its associates to have a full recognition of their own responsibilities and be able to make progress in the company„s commitment to the environment as an integral part of their own work tasks. It has committed to environmental conservation and spent a lot of effort to contribute to human health and the preservation of the global environment. Honda has leading in motorcycle industry in Vietnam. new associates visit Honda„s plants to listen to explanations given by facility managers about Honda„s environmental ideas and measures and to get hands-on experience in automobile and motorcycle manufacturing.com/doc/8384743/honda-strategy) Japan and Vietnam lie Asian area and two countries are influenced by Buddhism and have culture and weather nearly same. Japan kep Competition During 1997 to 1999.scribd.

However.has joining Vietnam market by import way. Honda has also no except.Suzuki( Japan). Honda Vietnam products fell from 20 percent to 8 percent and Chinese motorcycle certainly leading market with market share 75 percent (Nguyen 2006) Revenue and market share of FDI companies has shared for China's product. Chinese motorcycle is only generally and not clearly firm. Five biggest company popular in Vietnam are Honda (Japan). Revenue and market share of FDI companies has shared for China's product. Specific. Price of Chinese motorcycles were lower than another product. Hence. Honda Vietnam products fell from 20 percent to 8 percent and Chinese motorcycle certainly leading market with market share 75 percent. prices was about only two-third or a half another product. Firms competed on capability to tap largely potential demands of lower-income population. . Yamaha is the biggest competition of Honda. Honda has also no except. Yamaha (Japan) . Sym and many other firm. competitive advantage shifted to cost-based competition.

25 9.56 0.42 3.77 1.04 0.05 0.33 0.37 0.5 0.21 0.23 8.43 52 0.58 0.19 0. There the Top Competitors of Honda in domestic market are: Table 1: Market share of Honda in 2009 YEAR System HONDA YAMAHA SUZUKI 2005 2006 2007 2008 2009 Market share of year 2009 (%) Compare 2008 Growth in 2009 (%) Ranking 1 2 3 4 5 168.Nowadays.99 2.76 0.49 0.33 0.07 0.75 100 (source: Honda Vietnam) Marketing Objectives * The primary marketing objective of Honda Vietnam is to understand and fulfil the needs .76 1.91 0.8 1.52 18.32 11.24 0.85 1.1 with 0.64 SYM OTHERS TOTAL 0.34 0.3 0.4 0.5 0.1 0.09 0.2 5 0.24 104 128 125 121.14 2.6 1.02 0.2 0.36 3.

* * * . which is more effective than its competitors.and expectations of the customers in a manner.

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