Corporate Strategy

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US market in 1959. By 1960, its Supercub model was highly successful. They then created a highly effective as campaign based on "You Meet the Nicest People on a Honda". By 1964, it has dominated almost half of the US market. Later in that year, it required cash on delivery of shipments. As Pascale (1996) says, "In one fell swoop, Honda shifted the power relationship from the dealer to the manufacturer."

Honda's success has been analysed and three distinct explanations for its success emerged:

� The most prominent is the Boston Consulting Group (BCG) Report. The report states that Honda maximised experience curve economies - low costs at high production volumes. As a result, American and British motorcycle manufacturers withdrew from certain market segments.

� An interview with six Honda executives by Pascale, led to his conclusion that Honda was successful in Japan because superior design skills led to a better product. Honda was also seen has a 'learning ...

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