Honda Motors Company is the Japan based automobile, motorcycle, engine and aircraft manufacturer. Honda was founded by Soichiro Honda in 1948 as the manufacturer of automotive parts. Later, it moved to the manufacturing of motorcycles and become the largest manufacturer of motorcycle across the globe. Later it started manufacturing automobiles and become the first company who launched the dedicated luxurious brand Acura. And considered as the 8th biggest auto manufacturer giant in the world. Over several years, Honda started to venture in many other industries and now started to manufacture robots and jets. This diversification is the main reason for achieving the competitive advantage among its competitors (Jurevicius, 2016).
Honda always highlights towards its core objectives and business is engines, and all products which company ventured in towards its building. Honda is growing fast as compare to its rivals over the past years because of automobiles. Honda has become a top choice for the buyers. It has gained a remarkable reputation and famous for the quality building activities and parts or components, this is totally not undeserved. Its products are continuously ranked high for quality perspectives by the Consumer Reports and also by the multitude of some independent groups of consumers. The testament for the quality is sheer amount of vintage vehicles of Honda that are still moving on roads (Simpson, 2018).
In addition to this, Honda paid high attention towards satisfying its customers by focusing on the fuel efficiency of the vehicle. It gained higher marks in this, as it has gained the position of industry leader in fuel efficiency fleets and models, which has propelled it as famous during the times when gas prices were high. The model of CRX HF Honda is the car which sold on the basis of merits of the mileage of gas, because its gas mileage was on bar at the time of its launch, which many hybrids now have. Recently, Honda is one of the first companies who released hybrid vehicles in Honda Odyssey. It continues to lead towards the way of massive selection of both hybrid and ordinary vehicles (Hill, 2017).
Honda has achieved its competitive advantage by increasing its product value and brand value among rivals. It is regularly cited as the best “bang for the buck” brand of cars. Whether looking at its product line of sports cars or luxury line, it is true that buyer gets more of the value car as compare to the money he pays (Simpson, 2018).
It laid great focus on research and development, which is valuable and explore new and unique ways of satisfying consumers with advance technologies. It allows Honda to incorporate some technological advancements and breakthroughs into the broader line. Its investment is relatively high in R&D as compare to its rivals. Brand equity of Honda is extremely valuable and big source of gaining competitive advantage, as it consumers are willingly paying premiums for its vehicles due to the brand power and value and quality association. It cause Honda having best-in-class repetitive rates of purchasing (Hill, 2017).
References
Jurevicius, O. 2016. SWOT analysis of Honda. [Online], Available at: https://www.strategicmanagementinsight.com/swot-analyses/honda-swot-analysis.html, [Accessed on: 27th January, 2018].
Hill, N. 2017. Honda by the numbers. [Online], Available at: http://www.industryweek.com/leadership/honda-numbers, [Accessed on 27th January, 2018].
Simpson, L. 2018. Competitive advantage of Honda. [Online], Available at: https://itstillruns.com/competitive-advantages-honda-5916489.html, [Accessed on: 27th January, 2018].