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Honda Motor Co. established in1948 and head Quarters was in Tokyo Japan regarded innovation as key to success. They used to deal in Motorcycles, automobiles, power products.
INNOVATION CHAIN OF HONDA IN CHINA
Automobile Environment in china: The automobile industry was booming in china and had great market potentials with few restrictions like equity participation by foreign automakers and separate channels for vehicles made in china. But later china removed most tariff and non tariff barriers for the automotive industry for promoting and developing the industry. China overtook Japan to become the second largest automobile market in the world. Internal: The internal Environment of Honda’s to respect all the individual employees. Everyone working in Honda would be trusted and treated equally. “Three Joys” –Buying, selling and creating. Interaction with Honda should be a happy experience for all the stakeholders, including employees, suppliers, and consumers. With their customers preference for branded automobiles increasing rapidly. Honda entered the Japanese automotive industry in 1963. Due to market development and Govt. supportive rules and regulation in China, Honda had historically high earnings in 2007 As a result of this, Honda looked to strengthen their business in China Built multiple more manufacturing facilities in China To power product development, Honda produced electric generators and general-purpose engines both for export and domestic use. By the end of the year, Honda had introduced 5 new models to the Chinese Market.
MAIN INCOME GENERATING ASSETS OF HONDA’S
Civic and Accord had became very popular in Japan and worldwide. Honda had set up the sales networks, Research and development centers and manufacturing facilities around the world. The role of Honda’s for Japanese operations was to bring new technologies and products to customer. Core Competencies: Employees were encouraged to step into the shoes of the customers to understand products from the customer point of view. Everyone’s ideas were heard by top executive and they had meetings with every employee to discuss ideas or to challenge existing practices Organizational ranking did not matter. Guangzhou Honda Research and Development Honda became the first foreign automaker to develop products under an original brand through a joint venture in China this facility took up 6 million square kilometers. Facility was able to complete every step from coming up with the idea of a new car, to testing the final product on the test course. There aimed towards making
technologically advanced automobiles that were less harmful to the environment. They led to the creation of the Li Nian brand. Nature of innovation and various step taken by Honda: The Invention and new-product development was a big part of Honda’s culture .No capital spending was made on Rural development. Honda R& D Co. was founded in 1960 Separate organization specifically used to come up with new ideas and technologies. Joint Ventures allowed foreign investors to get involved and own a part of the company This was started in the 1980’s Along with this followed the emergence of more competition in the Chinese market Volkswagen, GM, Ford. Since the start of production in 1999, Guangzhou Honda has been steadily establishing a business foundation in China through various efforts including: expanding production capacity consistent with increasing sales, increasing local content, and strengthening of the dealer network. The establishment of an R&D center in China represents the company’s commitment to achieve greater autonomy in the area of R&D, in addition to production and sales, to position the company for further growth in the future as a joint venture company deeply rooted in the local market. Honda has been at the forefront of other companies in introducing new concepts to the automobile industry in China, which began full-fledged growth in the late 1990s. These achievements include: local production of the latest model Accord in China with Guangzhou Honda, establishment of China’s first dedicated automobile dealer network which integrates sales, service, service parts supply and customer service, and China’s first full-scale export to Europe of passenger vehicles produced at the Honda Automobile (China) Co., Ltd plant, which is dedicated exclusively to exports. Now, Honda again takes on a new challenge of developing a new product under an original brand of a joint venture company in China. MY VIEWS ABOUT HONDA INNOVATION: “The image of a dynamic, stylish, and high quality life for a new generation Initially targeted Chinese market. Bigger picture became a top international brand. The joint Honda booth will be called “Movement” and it will display Honda’s enthusiasm to make new movements by launching new products and technologies in China that are ahead of customer’s demands. Even with the changes coming forward because of GHRD it is still good for the company’s future perspective as it is able to sustain the competition in the chineese market.