ASSIGNMENT

ON

Operations Strategy of Manufacturing Firms: Toyota and Honda

Operation Management

GITAM SCHOOL OF INTERNATIONAL BUSINESS

GITAM UNIVERSITY

Submitted By:-

Chetan Sameer

1226110110

Sec: - ‘A’

M.B.A (I.B)

Operations Strategy

An operation strategy must be devised after the development of the business strategy. This is

done to provide a plan for the design and management of the operations function, in ways that

support the business strategy. The operation strategy is the one that associates the business

strategy to the operations function. The focus lies on the operation’s particular capabilities that

give a competitive edge to the company. These capabilities are referred to as competitive

priorities. By means of excelling in any one of the said capabilities, there exists the possibility

for the company to become the frontrunner in its specific market.

In order to understand the competitive situation in the company’s market, it is important for

operation manager to work closely with the marketing. It should be done to be able to determine

which among the different set of competitive priorities are important. The four broad categories

of competitive priorities are cost, quality, time, and flexibility.

All of the said priorities are important but as more resources are dedicated to a specific priority,

fewer resources are left for the others. That is why the operation’s function, must put greater

emphasis on the priorities that directly support the business. This is called the need to trade-off.

Even though the primary focus of the company lies only to some priorities, it is still relevant for

them to at least achieve a basic level for each priority.

For that reason, it is important to distinguish which among the said priorities are order winners

and the order qualifiers. The latter refer to priorities that are required to qualify as a competitor in

a particular marketplace. On the other hand, the former are those priorities that aid a company in

winning orders in the marketplace. However, to be able to compete successfully, a company

needs to change its order winners to differentiate themselves from their competitors. This is also

done in cases when companies try to imitate the order winner of a successful company, knowing

that they will also gain the same success that the other company has been achieved.

TOYOTA

Toyota Motor Corporation Toyota Jidōsha Kabushiki -geisha? Commonly known simply

as Toyota and abbreviated as TMC, is a multinational corporation headquartered in Japan. In

2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota

320,808). TMC is the world's largest automobile manufacturer by sales and production.

The company was founded by Kiichiro Toyoda  in 28 August 1937 as a spinoff from his

father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still

a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its

first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota

(including the Scion brand), Lexus, Daihatsu and Hino Motors, along with several "non-

automotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in

the world. Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. In

addition to manufacturing automobiles, Toyota provides financial services through its Toyota

Financial Services division and also builds robots. Toyota started in 1933 as a division of Toyoda

Automatic Loom Works devoted to the production of automobiles under the direction of the

founder's son, Kiichiro Toyoda. Its first vehicles were the A1passenger car and the G1 in 1935.

Toyota Motor Co. was established as an independent company in 1937.

From November 2009 through the first quarter of 2010, Toyota recalled more than 8 million

(accounts differ) cars and trucks worldwide in several recall campaigns, and briefly halted

production and sales. The US Sales Chief, James Lentz, was questioned by the United States

Congress committees on Oversight and Investigations on February 23, 2010, as a result of recent

recalls. On February 24, 2010, Toyota CEO Akio Toyoda testified before the House Committee

on Oversight and Government Reform. On 6 April 2010, The US government sought a record

penalty ofUS$16.375 million from Toyota for its delayed response in notifying the National

Highway Traffic Safety Administration regarding the defective accelerator pedals. On 18 May

2010, Toyota paid the fine without an admission of wrongdoing. The record fine and the high

profile hearings caused accusations of conflict of interest. The US government is regulatory body

and part owner of two major competitors, General Motors and Chrysler. Senior managing

director Takahiko Ijichi said that recall-related costs in the financial year that ended March 2010

totaled US$1.93 billion (¥180 billion)

Operations Strategy of Manufacturing Firms: Toyota

Toyota’s operations strategy focuses on maximum reliability, easy maintenance of its cars in

each class, production systems that includes product design, processes, and supply chain

management focused on their goal.

European automakers need to be more prepared as Toyota releases its handful of hot models.

While the powerhouse of Japan figures how to build cars which attracts the Europeans, it was

also bearing down on costs to yield its needed efficiency to prevail in one of the world’s lowest-

margin auto markets. The management of Toyota is asking its engineers to propose a design,

which is innovative and cost saving in nature, at the same time, for the facility of the

Valenciennes. And the result is the compact, star-shaped factory, which is a first for Toyota. The

production area has a limited space for the storage of other parts and components. The two and a

half hours’ worth of inventory on hand is lower compared to other Toyota factories in the world.

Fewer man-hours, less inventory, this is how Toyota is. They consistently have the highest

quality cars with the fewest defects compared to its competitors in the manufacturing (auto)

industry. Their well-known “Toyota Production System” (TPS) or “Lean Production” seems to

be their secret weapon in improving the speed of their business processes, quality of their

product and service, as well as the reduction of costs.

The TPS developed as a new paradigm of manufacturing excellence, which transforms

businesses across different industries. The company also encourages employees’ involvement in

all levels. In addition, they also discover the difference between the traditional process

improvement and Toyota’s Lean improvement.

In order for the said system to work at your advantage, there is also the need for you

to follow the so-called “14 Toyota Way Principles”. This operating philosophy serves as a guide

for its management. First principle is to base your management decisions on a long-term

philosophy, even at the expense of your short-term financial goals. Second, you must create a

continuous flow of processes to bring out any possible problems. Third, to be able to avoid

overproduction problems, you must use the pull systems. Fourth, level outing of workload is also

important.

As they say, work like a tortoise, not like the hare. Fifth is to build a stopping culture to fix

problems as soon as possible. It also enables to get quality right the first time. Standardizing of

tasks is also important as it serves as the foundation for continuous improvement. To avoid

missing any possible hidden problems, the use of visual control can be a great help. You must

also make sure that all the technologies you are using are reliable and thoroughly tested to be

able to serve your people and the processes of your business. This is to avoid wasting of time,

resources, and effort used in an ineffective technology. Next, leaders should serve as the role

model of all. He himself should understand the work thoroughly and live its philosophy to be

able to teach it to others and make them follow his ways. In turn, the leader can now develop

exceptional people and teams in accordance to your company’s philosophy. Respect is another

important thing among you and your extended network of partners and suppliers. This can be

done by challenging and helping them improve their ways of doings. For you to be able to

understand a given situation, you yourself must go and see it. As they say, you will only believe

and understand if you yourself have seen and experience the situation. The process of decision-

making should also be done slowly to avoid making hasty decisions, which are risky most of the

time. It should come from a consensus, with consideration to all available options. While on the

other hand, its implementation should be done quickly. Lastly, through relentless reflection and

continuous improvement, your company should become a learning organization for all the

people involved in your company.

This is the very core reason why Toyota, despite the competitors’ effort of

imitation, continues to gain market share and huge profits continues on building new plants,

retains a harmonious relationship with its supplier and enthusiastic workforce, with its labor

costs retained at a lower amount compared to others. They are also described as “the fastest

runner in the race” in auto industry. Production efficiency helps them reach that point. Their

record (most productive) of 27.9 hours per-vehicle time surpasses the record of their competitors

like Ford and Chrysler. The tools of the TPS seem to work smoothly for them. These tools are

lean, agile, TQM, TPM, re-engineering, just in time, cellular/continuous workflow, etc. TPS

should not only be a cost-based strategy, it should also be a value-based one. The full potential of

the TPS is as an operational solution ready to remake entire organizations – both at the process

and management level.

Products of Toyota

Cars

Yaris

Corolla

Matrix

Camri

Prius

Venza

Avlon

SUV’s & Vans

RAV4

FJ Cruiser

Sienna

Highlander

4Runner

Sequoia

Land Cruiser

Trucks

Tacoma

Tundra

Lexus

Lexus is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First

introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's

largest-selling make of premium cars. As of 2009, Lexus vehicles are officially marketed in over

70 countries and territories worldwide. The Lexus marquee has ranked among the ten largest

Japanese global brands in market value. The division's world headquarters are located in Toyota,

Aichi, Japan, with operational centers in Brussels, Belgium, and Torrance, California, United

States.

R&D of Toyota

In keeping with its founding spirit of “Be ahead of the times through endless creativity,

inquisitiveness, and pursuit of improvement”, Toyota Industries actively carries out research and

development activities. Our R&D activities can be broadly classified into two areas, (1) product

development and improvements performed independently within each business division, and (2)

R&D undertaken mainly by the “Research & Development Center” separate from the activities

of our business divisions and with a view toward company-wide management strategy.

In each of our internal divisions various initiatives, centered on the technical departments, are

being taken to promote the advanced development of future products that will lead the world in

functionality, quality, and low cost. The results of these R&D activities are unveiled at an

internal technology exhibition in each division and also at a company-wide technology

exhibition held every year where the engineers from all divisions gather. In this way we strive to

give our engineers access to a wide range of exchange opportunities.

The “Research & Development Center”, which is located in Kyowa, Obu City, Aichi Pref.,

undertakes the advanced development of fundamental technologies which will be the keys to the

future products of each division, and advanced research for the development of new products for

new businesses as well as development of materials and other technologies that will come to

serve as the common foundation for all divisions.

For example, there are a multitude of research and development results and prototypes such as a

wide variety of functional parts for use in fuel cells, non-contact power supply technologies for

use in clean logistics, super smooth coatings for inside car air-conditioning compressors, and

three dimensional fabrics reinforced composite technologies. From this point forward research

and development will continue into new technology themes for every field including

automobiles, materials handling equipment, and electronics.

In order to make research and development more efficient and introduce leading edge

technologies, we conduct collaborative research with Toyota Central Research & Development

Laboratories, Inc., an R&D facility of the Toyota Group involved in basic research, as well as

with universities, other outside R&D institutions, and manufacturers. Top level research

Activities are carried out with the support of the newest simulation software and analytical

instruments. In this environment our researchers and engineers are developed through wide-

ranging participation in scientific societies in all the major technological fields, such as

machinery, electronics, physics, and materials, etc. This allows them to absorb the latest

technologies and we create opportunities for them to deepen their practical business experience

in product development through exchanges with the other technical divisions within Toyota

Industries and cooperation with other members of the Toyota Group.

Combustion analysis of a direct injection gasoline engine

Toyota has developed the technology that can quantitatively predict and

diagnose the in-cylinder air-fuel ratio distribution and combustion process in

order to develop an optimal combustion system for high-efficiency direct

injection gasoline engines.

(Joint research with Toyota Central R&D Labs.)

Fuel cell

Toyota has established the basic and elemental technologies needed to realize

the fixed macromolecular fuel cells that are expected to become the clean, highly

efficient, next-generation vehicle power source. These are the essential, basic

technologies needed to apply fuel cells to the automotive field.

(Joint research with Toyota Central R&D Labs.)

Rubber recycling

Toyota has developed recycling technology for rubber waste generated from both

manufacturing products and post-consumer products to protect the global

environment and also save resources.

(Joint research with Toyota Central R&D Labs and Toyoda Gosei Co. Ltd.)

Automotive emission control catalysts

Toyota has succeeded in the development of a new catalytic promoter, which

consists of a ceria-zirconia solid solution. The promoter has an excellent ability,

to store and release oxygen. The three-way catalyst produced using this

technology, greatly reduces nitrogen oxides.

(Joint research with Toyota Central R&D Labs.)

Hybrid synergy drive(HSD)

The Toyota HSD replaces a normal geared transmission with an

electromechanical system. Because an internal combustion engine (ICE) delivers

power best only over a small range of torques and speeds, the crankshaft of the

engine is usually attached to an automatic or manual transmission by a clutch or

torque converter that allows the driver to adjust the speed and torque that can be

delivered by the engine to the torque and speed needed to drive the wheels of the

car. When required to classify the transmission type of an HSD vehicle (such as in

standard specification lists or for regulatory purposes), Toyota describes HSD-

equipped vehicles as having E-CVT (Electronically-controlled Continuously

Variable Transmission)

Planetary gear set

Planetary gearing is a gear system that consists of one or more outer gears, or

planet gears, revolving about a central, or sun gear. Typically, the planet

gears are mounted on a movable arm or carrier which itself may rotate relative to

the sun gear. Planetary gearing systems also incorporate the use of an outer

ring gear or annulus, which meshes with the planet gears. The axes of all gears

are usually parallel, but for special cases like pencil sharpeners they can be

placed at an angle, introducing elements of bevel gear (see below). Further, the

sun, planet carrier and annulus axes are usually concentric.

Insulated Gate Bipolar Transistor for Hybrid Vehicles (IGBT)

Toyota has developed the "IGBT-Insulated Gate Bipolar Transistor", applying

semiconductor power device technology. This device was used for "Prius", the world's

first mass-produced hybrid vehicle.

Plug-in hybrid cars

A plug-in hybrid electric vehicle (PHEV or PHV), also known as a plug-in hybrid,

is a hybrid vehicle with rechargeable batteries that can be restored to full charge by

connecting a plug to an external electric power source (usually simply a normal

electric wall socket). A PHEV shares the characteristics of both a conventional hybrid

electric vehicle, having an electric motor and an internal combustion engine; and of an

all-electric vehicle, also having a plug to connect to the electrical grid. Most PHEVs on

the road today are passenger cars, but there are also PHEV versions of commercial

vehicles and vans, utility trucks, buses, trains, motorcycles, scooters, and military

vehicles. One of the upcoming models of Toyota is the Toyota prius plug-in hybrid

HONDA

Honda is the world's largest manufacturer of motorcycles as well as the world's largest

0manufacturer of internal combustion engines measured by volume, producing more than 14

million internal combustion engines each year Honda surpassed Nissan in 2001 to become the

second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler

as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest

automobile manufacturer in the world.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand,

Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also

manufactures garden equipment, marine engines, personal watercraft and power generators,

amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics

research and released their ASIMO robot in 2000. They have also ventured into aerospace with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet,

scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.

From a young age, Honda's founder, Soichiro Honda had a great interest in automobiles. He

worked as a mechanic at a Japanese tuning shop, Art Shokai, where he tuned cars and entered

them in races. A self-taught engineer, he later worked on a piston design which he hoped to sell

to Toyota. The first drafts of his design were rejected, and Soichiro worked painstakingly to

perfect the design, even going back to school and pawning his wife's jewelry for collateral.

Eventually, he won a contract with Toyota and built a factory to construct pistons for them,

which was destroyed in an earthquake. Due to a gasoline shortage during World War II, Honda

was unable to use his car, and his novel idea of attaching a small engine to his bicycle attracted

much curiosity. He then established the Honda Technical Research Institute in Hamamatsu,

Japan, to develop and produce small 2-cycle motorbike engines. Calling upon 18,000 bicycle

shop owners across Japan to take part in revitalizing a nation torn apart by war, Soichiro received

enough capital to engineer his first motorcycle, the Honda Cub. This marked the beginning of

Honda Motor Company, which would grow a short time later to be the world's largest

manufacturer of motorcycles by 1964.

The first production automobile from Honda was the T360 mini pick-up truck, which went on

sale in August 1963. Powered by a small 356 cc straight-4 gasoline engine, it was classified

under the cheaper Kei car tax bracket.[citation needed] The first production car from Honda was

the S500 sports car, which followed the T360 into production in October 1963. Its chain driven

rear wheels point to Honda's motorcycle origins

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock

Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo,

Kyoto, Fukuoka, London, Paris and Switzerland.

The company has assembly plants around the globe. These plants are located at China, United

States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India,

Thailand, Turkey and Perú. As of July 2010, 89 percent of Honda and Acura vehicles sold in the

United States were built in North American plants, up from 82.2 percent a year earlier. This

shields profits from the yen’s advance to a 15-year high against the dollar.

Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2007

Geographic Region Total revenue (in millions of ¥)

Japan 1,681,190

North America 5,980,876

Europe 1,236,757

Asia 1,283,154

Others 905,163

Operations Strategy of Manufacturing Firms: Honda

Honda applies 5 type of strategy are as follow:-

Enterprise Strategy

Corporate Strategy

Business Strategy

Operational Strategy

Individual Strategy

Enterprise Strategy

The Mission Statement of Honda is try to maintain a global point of view, with the dedication to

supply the highest quality products at a reasonable price for worldwide customer satisfaction.

Moreover, taking new challenges with the pursuit of Initiative, Technology and Quality, Honda

is pursuing their 2010 Vision: Striving to be a company society wants to exist through creating

new value, globalization, and commitment for the future.

Corporate Strategy

Honda‘s portfolio includes three businesses: Automobiles business, Motorcycles business, Power

business. Even though stepping into Automobile industry rather late at 1963, Honda quickly

leads the industry with characteristics like superior fuel economy, optimum safety, and driving

pleasure. Honda‘s sales and production in this industry prove successful steadily not just in U.S.

but also in many regions worldwide. Meanwhile, motorcycle business is the first business of

Honda, from 1963 with the event of the first oversea plant in Belgium, Honda has devoted in one

basic rule: build products close to the customer. Honda has operated successfully in 28

motorcycle plant in 21 countries, as well as Honda R&D operations in the U.S., Italy, China,

Germany, Thailand, and India. In 2005, the 150-millionthHonda motorcycle created, its business

goal is to make Honda cycles more popular than ever. The first Power Product engine started in

1953, and now has expanded - includes tillers, portable generators, outboard engines, lawn

mowers, power carrier… Cumulative production of power products has exceeded 70 million

units (May, 2006). Power Products are produced at 11 plants in 9countries worldwide, sold in

156 countries, and used by around 5.5 million people annually. Honda is now expanding into

robot industry with ASIMO, reaching the sky through Honda jet, providing financial services

worldwide to enhance sales increasing. They all create a very promising and potential Honda in

the future.

Business Strategy

R&D is sharpening the business advantage of Honda, together with the fierce competition

between Honda and competitors, and they all define the Business Strategy of Honda. One of the

proudest things about Honda is its R&D system. With the systematic way of approaching, focus

on durability, reliability and basic performance to establish a creative and innovative technical

foundation. With the wisely approach to the future, the Honda products do care about the

economical, environmental, and social issues– This leads to a increase steady in American and

Europe recently meanwhile the whole industry is going down by some external factors such as

U.S.D. depreciation, Oil price raising, political recession … Honda is keeping involving in the

research and development that benefit people in the future through leading-edge technology and

commitment to innovation that opens up new possibilities in mobility. With ―The Joy of

Selling‖ – The dealership of Honda is also one of its strengths. Through creating products and

services that provide the core values that make Honda unique, the Honda’s associates around the

world keep creating such inspiring experience for its customer. Honda put heartfelt endeavors

into services, responding to changing values and increasingly complicated needs of customer

worldwide. Its services focus on improving customer relations, with friendly and attentive sales,

responsive service support, thorough maintenance and repairs. ―Life with a Honda‖ –Honda

began unifying its multiple dealership channels into a single Honda sales channel, seeking to

strengthen the Honda brand, enhance customer satisfaction, and help ensure lifetime customer

loyalty. The manufacturing and distributing system of Honda are also sources for the succession

of Honda. With the global network, Honda‘s global strategies somehow include the globalization

characteristic. Honda has established independent local operation around the world and pushed

local autonomy and proactive efforts to localize the needs regional with mutual understanding.

The competition between Honda and others speed up year by year. This is somehow carry the

win/lose characteristic.

Operational Strategy

Honda operates in the worldwide market– with 134 production facilities in 28 countries and at 31

R&D facilities in 15 countries, about 167000 Honda employees and associates serve 23 million

customers worldwide annually. Honda‘s global operations are divided into 6 administrative

regions responsible for operating. Hiring and engaging the people and philanthropic initiatives

locally in the communities that Honda operates. Honda is pushing the independence of their local

management and sales operations, at the same time with integrating and forward-looking plan for

each region. They operate under the conduct guidelines that help member companies and

associates in evaluating and managing risks, complying with laws and regulations, keeping a

high level of transparency in operational level, that‘s all to maximize the worldwide customer

satisfaction.

The Individual Strategy

The individual strategy of Honda is reflected through the Honda‘s philosophy ―The Three Joy–

The Joy of buying, The joy of selling, and The joy of producing. With the joy of buying, the

Honda‘s associates must try their best to exceed the customers‘expectation. Meanwhile, with the

joy of selling, which concern not only about the relationship between the dealers and their

customers, but they also feel the pride of having a positive relationship with their customers. And

the last one, the joy of producing comes from manufacturing, research and development… by

producing quality products that satisfy customers worldwide, the Honda‘s employees can

experience pride in exceeding the expectation of their customers. That all bring the strategies of

Honda from their enterprise level, through corporation, business, operational level, to individual

strategy level, that spread the Honda‘s strategic spirit throughout the company.

Products of Honda

Acty 

Accord 

Airwave 

City 

Civic 

CR-Z,

Civic Hybrid 

CR-V 

Crosstour 

Edix 

Element 

Elysion 

FCX,

FR-V

Fit 

Fit Aria 

Freed

Hobio 

Insight,

Inspire 

Jazz/Fit 

Legend 

Life 

MDX 

Odyssey 

Partner

Pilot 

Prelude 

Ridgeline

StepWGN 

Stream 

Vamos

R&D of Honda

The Honda R&D story began in 1960 with the separation of the research and development

division from Honda Motor Co. With the goal of bringing the Honda magic to ever greater

numbers of satisfied customers, Honda R&D was born as an independent entity. Our corporate

culture is imbued with respect for the individual, emphasizing a research and development

system that enables the talents of each engineer to flourish in the pursuit of our ultimate

objective: bringing originality and innovation to the technologies and products that we

develop.At Honda R&D, the "R-stage"(research) and the "D-stage"(development) form the

process which transforms an idea into a product. The D-stage promotes activities directly related

to the creation of products which will satisfy the needs of society and ensure customer

satisfaction. Preceding this D-stage is the R-stage, where innovative new technologies are

actively pursued and evaluated based on a long-term vision toward completion. These two

systems do not function independently of each other—rather, they form an integrated whole, a

symbiosis which enables maximum efficiency in product development.

Conclusion

In the global business, many top managers still centralize their authority; make most of decisions

of the company. In contrast, Toyota follows a different way; most of decisions are made by a

group of responsible persons, including Board of Director, outside directors, outside auditors.

Toyota decentralizes authority to their associates to maximize the flexibility and diversity in

decision making process, and well adapt to the changes of global market. Making group decision

of responsible persons in Honda is extremely effective. The theoretical advantage of this strategy

is improving innovation and reducing risk, biased thinking. In fact, this strategic leadership style

leads Honda to today success. For instance, the organization of Board of Directors or Board of

Auditors includes not only inside company‘s employees but also external appointees. This

feature helps Honda and Toyota to make the distinction in global performing and competing.

Outside company appointees play the role as supervising the execution of each board. As the

result, the performance of each board becomes effective and efficient rather than organization

with entirely inside company employees. By this strategy organizing, the company can ensure

that working environment will be fair and strong without dubious cooperation. With the human

assets style of leadership Honda manages its employees through promoting programs, principles

and policies in supporting its organizational human resources. Honda especially focuses on

human factors. Where Toyota follow their own strategy.

1) How the strategies of 2 companies are different?

2) Which segment of customers they target?

1.Ans. The strategy of two companies is totally different from each other. Honda

strategy is on 5 ways like Enterprise Strategy, Corporate Strategy ,Business Strategy

Operational Strategy ,Individual Strategy, where Toyota has another strategy, their all

decision are depend on Boards of directors but there motto is same to become a market

leader in Automobile sector and make their market share at high rate.

2.Ans. It depends on company because both companies have other type segments of

cars. Toyota cars start from INNOVA in India which cost around 8,53,000 they target

higher class and business class people and mostly they target company, hotel and other

because they use Toyota car for pick and drop service ,and Toyota others car have costly

by which they target rich people. In Honda they target Middle class family because there

car start at Rs5,35000 where any middle class family can afford. The look of Hondas car

is sport and luxury by which they target young people.

Both company target according to income level of people. Before launch to their product

they do STP for their product. They target AGE and many more things third things

depend on place.