Motorcycle and Honda

TUTORIAL PREPARATION INTERNATIONAL MARKETING (MKT 343) 1. How stool companies learn from Hondas investment in the Indian market? Honda had showed a great way to invest in the Indian market as in they choose to generate a impertinent model in vehicle aspect. During that time, Honda arrived at the right time because the uncouth is under downcast vehicle-penetration rate and the country expects vehicle carrefourion will increase by 9% annually to 2011. Before Honda starts its business over the country, they choose combatant as their business partner because Honda realised the potential by determination synergies between the two firms which is Honda and Hero.Both combine as a partnership and invented a motorcycle. Other than that, Honda utilise the experience and market knowledge to understand the country needs and produce according to their demand because portion outing motorcycle in India is extremely doughable business. After succeed two-wheeler motor vehicle maker in the w orld, Honda continue to take opportunity to establish another Honda giant, Honda Siel Cars India Ltd (HSCL). past they enrich Indian users lifestyle by forming Honda R&D (India) (HRID) Pty Ltd. Thus, Honda had suitable the countrys lifestyle which helps them to achieve the demand of people in India. . Honda and Hero what made them such a great partnership? Honda had chosen Hero which creates a great partnership between them. Hero was reinforced in the meshing of independent bicycle dealers which had already established wizard of Indias leading bicycle brands meanwhile Honda had been waiting for years to sell motorcycles I India because the countrys motorcycle business is extremely profitable. past Honda realised the potential between this two firm where they had sh bed a similar operating disciplines and the potential of converting Heros large network of bicycle dealers to motorcycle dealers.Hero Honda successful show as the largest two-wheeler motor vehicle manufacturer in t he world and in India its annual sales intensity level is over three million motorcycles. 3. Imagine yourself as CEO of Honda in the Asia Pacific region. Would you choose India or mainland China to establish a new manufacturing set out for producing cars and two-wheelers? I would choose India to establish a new manufacturing plant for producing cars and two-wheelers. The reason I choose India is because of few factors.First, the production cost in India is low compare to production cost in China because India is not a large country and less manufacturer around precisely China got higher potential to increase their production. Next, there is less competitors in India during the year 1980s due to the reason where many had failed before to enroll a new market in that country. The reason why I dont choose China is because the citizens in China are united. They would rather support local product more than foreign product because the government wanted to protect their countrys domest ic.In the 1980s, foreign automakers were tolerate to form joint ventures in China but the foreign monomania limited to 50% only meanwhile another 50% essential own by Chinese. Other than that, China government wanted to give voice a car industry quickly thus they learn from the foreign companies how to make cars while maintaining control of the car industry. In this point, it shows clearly that China wants most of the ownership by themselves and foreigner instead of earning more profit their techniques have to be taught to others which will cause their own production to abate after years.