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Born Global, Grow Global
What to Learn From Honda
Toshikata Amino
Executive-in-Residence
Fisher College of Business
The Ohio State University
Executive Vice President (Retired)
Honda of America Mfg., Inc.
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This material is copyright by Toshikata Amino and distributed
under a Creative Commons 3.0 attribution license. That means you
are free to modify, copy and use this material for commercial
purposes provided that you attribute it as follows:
Source: Toshikata Amino Copyright 2011 distributed under Creative
Commons 3.0 Attribution-Noncommercial-No Derivative Works.
You can learn more about Creative Commons license at
www.creativecommons.org
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Honda Motor Co. Was
Founded in 1948
• By Mr. Soichiro Honda
• He was 41 years old
• Elementary school
graduate
• Capable auto
mechanic, successful
auto repair shop
owner in Hamamatsu,
then auto parts
supplier for Toyota
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Honda’s First Small Motorcycle
Plant in Hamamatsu,Japan
• Birth place of
Japanese
motorcycle
industry
Honda, Yamaha
Suzuki
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Mr. Honda’s Ambition
• Be competitive in the global market
He said “We should be competitive in the
global market. Otherwise, we cannot
compete even against our domestic
competitors”
(Remember that Japanese industry was still
recovering from the total damage of World War II. Not much attention to global market in Japanese
business people’s minds at that time)
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Mr. Honda’s Personal Ambition
Became
Honda Corporate Principle
• Maintaining A Global Viewpoint, We
Are Dedicated To Supplying
Products Of The Highest Efficiency
Yet At A Reasonable Price For
Worldwide Customer Satisfaction
(1956)
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Global Honda
• Honda was a “Global- Minded”
company almost from the beginning.
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Today We Are Living in a Much
More Globalized Society
・Ever advancing Information technologies
・Online marketing
・Instant knowledge sharing beyond
countries’ borders among customers
・Free Trade Agreement
・Rapidly developing countries and new
market
・Global moving of people (Consumers)
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Globalization
• We have no reason not to take
advantage of globalization
• Think to grow in global arena from
the beginning of your business
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How To Do It
• Maintain your global viewpoint
• Request your partners/employees to
maintain their global viewpoint
• Always keep in touch with global
happenings
• Make it a custom to relate global
happenings to your business
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What Honda Did
“Increase Global Presence”
Actively participated to motorcycle racing from 1954
• San Paulo International Motorcycle Racing
• Announcement of Honda’s participation in
TT Race On The Isle of Man to be recognized
as a new motorcycle manufacturer in world
market
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Continuously Go Abroad
1959
• American Honda was established
Why first overseas operation in U.S.?
Why not Asia or Europe?
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Global Motorcycle Market (1950)
In Asia
• Needed
inexpensive
transportation
(Bicycles are major
transportation)
・Short distance from
Japan
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In Europe
• Big market size
• Mature (Long history of motorcycles)
• Many motorcycle racing enthusiasts
• However, very tough competition
among established European
motorcycle manufacturers
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Why Did Honda Decide to Come to
U.S. As a First Overseas Market?
• Mr. Takeo Fujisawa,
Co founder of Honda
“We should take the
toughest challenge.
Our dream should not
be limited to the
motorcycle business.
We will go into the auto
business in the future.”
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American Honda’s First
Office
• A tiny office / warehouse located on Pico Blvd.
Los Angeles
• Sales were very slow
• Honda sales team visited motorcycle dealers one by one by truck fully loaded with Honda motorcycles
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Change the Image of Motorcycles
“You Meet The Nicest People On
A Honda” Campaign
• Mass Advertisement
Time, Life, TV
Be creative and
innovative
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Think Global, Act Local
• If you are successful in globalization,
sooner or later you have to consider
being local in each market
How to act locally in Japan?
How to act locally in Tibet?
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Honda’s Localization
Why Production in U.S.?
• Honda Philosophy
“We produce where we have customers”
• Why?
・Better access to market
・Better delivery when customer wants
・Better understanding of customers
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Why?
(continued)
• Better chance to contribute to the
community
・Employment
・Purchasing
・Tax
・Export
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Why?
(continued)
• Better cost competitiveness
・ Less logistics costs
・ Less impact of currency fluctuation
・ (Less labor and material cost)
Give, give and take. Win Win relationship
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Strongest Motivation
“Dream”
• Manufacturing was a long time
dream since Honda came to America
in 1959
Power of Dreams
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Result of Feasibility Study (1975)
Manufacturing in U. S.
• Sept 1979 Motorcycle Production
• Jan 1980 Announcement of auto
production plan
150,000/year
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Auto Production Was
Started and Expanded
• Nov 1982 Auto Production
• 1985 Expansion of auto plant
completed 300,000/year
• 1985 Engine Production in
Anna
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Repeat
• We have no reason not to take
advantage of globalization
• Think to grow in global arena from
the beginning of your business
• “Glocalize” your business
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Thank You for Listening
• Questions?