Case Study: Honda Cars Philippine Inc. (HCPI) by Joselito B.

Jordas

HCPI is a subsidiary of Honda Motor Co., Ltd. Of Japan, Duly incorporated in October 1990, completing its plant and start production of completely knocked-down units in 1992 and capturing a strong foothold in the passenger car sales market in 1996. In 1997 and 1998, HCPI was among the business Worlds Top 100 companies. HCPI is in the passenger car and sports utility vehicle in the commercial vehicle industry. The company product line includes the following: Honda Accord, Honda civic, Honda City, Honda CR-V, Honda Legend, and Honda Odyssey.

Industry sales decline tremendously due to the de facto peso devaluation in 1997, where the local currencys value plunged and interest rates skyrocketed. The company immediate concern was to maintain its number one position and regain its lost market share in the passenger car industry. Other concern such as high set up cost and operating requirements, competitors, large capital needed in research and development, government regulation, environmental issues.

HCPIs strategy in its overall operation relative to competition maybe summarized as follows: Exploring new market niches and opportunities,Increasing production efficiency,Retaining customers and developing new one, Marketing initiative toward smaller vehicles, Effective distribution networks and dealership, Continuing training and motivation of field personnel, Responsive customers relations dept.,Initiating quality productivity circles,R & D initiative to sustained competitive advantage,Reinvesting stockholders equity,Competitive compensation package and fringe benefits.