Motorcycle and Honda

TUTORIAL PREPARATION multinational MARKETING (MKT 343) 1. How can companies learn from Hondas investment in the Indian market? Honda had showed a vast way to invest in the Indian market as in they get to generate a new model in vehicle aspect. During that time, Honda arrived at the right time because the outlandish is under start vehicle-penetration rate and the country expects vehicle productionion will increase by 9% annually to 2011. in the lead Honda starts its business over the country, they choose Hero as their business partner because Honda realised the potential by finding synergies between the two steadfastlys which is Honda and Hero.Both combine as a partnership and invented a motorcycle. Other than that, Honda go for the experience and market knowledge to understand the country needs and produce according to their demand because exchange motorcycle in India is extremely profitable business. After succeed two-wheeler motor vehicle manufacturer in the world, Honda continue to take opportunity to establish another Honda giant, Honda Siel Cars India Ltd (HSCL). Then they enrich Indian users lifestyle by forming Honda R&D (India) (HRID) Pty Ltd. Thus, Honda had adapted the countrys lifestyle which helps them to achieve the demand of people in India. . Honda and Hero what made them such a broad partnership? Honda had chosen Hero which creates a great partnership between them. Hero was built in the network of independent rack dealers which had already open up one 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. Then Honda realised the potential between this two firm where they had shared a similar operating disciplines and the potential of converting Heros macroscopic network of bicycle dealers to motorcycle dealers.Hero Honda successful show as the largest two-wheeler motor vehicle manufacturer in the world and in India it s annual sales volume is over three million motorcycles. 3. Imagine yourself as CEO of Honda in the Asia Pacific region. Would you choose India or chinaware to establish a new manufacturing plant for producing elevator 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 live in India is low compare to production cost in China because India is not a large country and less manufacturer around but China got higher potential to increase their production. Next, on that point is less competitors in India during the year 1980s due to the reason where many had failed before to enter 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 domestic.In the 1980s, foreign automa kers were allow to form joint ventures in China but the foreign ownership limited to 50% only meanwhile another 50% must own by Chinese. Other than that, China government wanted to develop 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 chip in to be taught to others which will cause their own production to decrease after years.