The paper tells that the best business strategy for Honda that will ensure its long-term success is decentralization. The subsidiaries are allowed to operate independently, therefore, they are best suited to understand the consumer needs. By understanding consumer needs, they will always fully satisfy their consumers, therefore retaining a competitive advantage that will ensure their long-term success. Corporate strategy can be defined as a set of decisions that determine and reveal an organizations objectives, purposes, and goals both short and long-term. Corporate strategies are focused on mission, vision and structure and value creation throughout the organization.
The key corporate strategy at Honda is enhancing corporate value by a way of expanding sales within each of its three product lines which are dependent on accelerated innovation in the company, and especially research and design as well as manufacturing. When a company achieves its business strategies, it, therefore, means that it is in the process of achieving corporate strategy success as well as evident in Honda. Honda introduces their products by consideration of geographical differences and variations in culture. This has produced good results in their business line.
The company integrates product related core competencies with core competencies related to the process as a means of gaining competitive advantage. Honda’ s internal combustion engines are popular for they reduce pollution and their newly introduced technology of CVCC (Compound Vortex Controlled Combustion). They specialize in low pollution and less fuel consuming autos and engines. This is by far the most significant corporate strategy. The quality of Honda’ s product also serves as a competitive advantage. Honda uses innovative technology in all of their three product lines and as such, they have an unmatched research and design efficiency.
They constantly transfer their technology from powertrains and engines to their automobiles, generators and marine engines.
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