Case Analysis

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Case Analysis I. Time Context : March 2000 II. Point of View: Board of Directors of HCPI ( HCPI President) III. Statement of the Problem Can HCPI maintain its number one position and regain its lost market share in the passenger car industry? How will HCPI improve its overall financial performance, competitiveness and its long term business position? Can HCPI meet consumer demand of production capacity of cars? Can HCPI fix the issue of customer’s complaints of high cost of repairs, maintenance services and replacement of spare parts? IV. Statement of Objectives Must Objective: HCPI should regain its lost market share in the passenger car industry HCPI should supply good quality cars and spare parts for maintenance of the highest efficiency yet at reasonable prices for customer satisfaction. Want Objective: HCPI will work closer with dealerships to maximize customer satisfaction even after their purchase. V. Areas of Considerations Strengths * Strong brand image * Excellent branding, advertising and after sales servicing for accessories and add on components. * HCPI was among the Business World’s Top 100 companies and continues to be the undisputed leader in the passenger car business with 47 % share. * HCPI’s car models were among the Top 10 best-selling models * HCPI’s manufacturing facilities and operations were awarded the ISO 9002 and 14001 Certified. Weakness * Cost structure of Honda is high as compare to other automobile manufacturers * HCPI car models are limited and not readily available unlike in other countries Opportunities * Fast growing automobile market * Tapping emerging markets across the world and building a global brand * Developing hybrid cars and fuel efficient cars for the future Threats * Intense competition from global automobile

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