Tuesday, March 16, 2010

hondas corporate strategy

Honda is a company that is involved in many aspects of business. They have Honda jet, Honda power (small engines), Honda motorcycle, and Honda motors (Automobiles). This makes Honda a diversified company involved in many aspect of business around the world. Honda’s corporate strategy is unrelated diversification strategy for this every reason. When Honda jet and Honda motorcycle make their products to sell to consumers they cannot relate these products in the manufacturing process or any other process. There are too many differences in how the products are made, how they are used and how they are sold. People that want a Honda motorcycle have no use for a Honda jet motor, and the people that want Honda jet motors have no use for a motorcycle engines in their jets. This is where Honda has two different product lines that have no way of meeting on the value chain to increase profits.

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