The American Honda Motor Company was established as a subsidiary by

Honda in 1959. During the 1960's the type of motorcycles brought by

Americans underwent a major change. Motorcycle registrations increased

by over 800,000 in five years from 1960. In the early 60's the major

competitors were Haley - Davidson of U.S.A, BSA, Triumph and Norton of

the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest

market share with sales in 1959 totalling a6.6 million dollars. Many of

the motorcycles produced were large and bulky and this led to the image

of the motorcycle rider as being one who wore a leather jacket and went

The Boston Consulting Group ( BCG ) report was initiated by the British

government to study the decline in British motorcycle companies around

the world, especially in the USA where sales had dropped from 49% in

1959 to 9% in 1973. The two key factors the report identified was the

market share loss and profitability declines an the scale economy

disadvantages in technology, distribution, and manufacturing.

The BCG report showed that success of the Japanese manufacturers started

with the growth of their own domestic markets. Th

Another strength was the way the company utilised its market position.

the wrong time sales were not as good as they should have been and any

assumption that Honda was superior to other competitors in productivity.

company or its products, but rather to show his innovative ability by

The BCG report shows that Honda had a smooth policy of developing region

Honda entered the us market right at the end of the motorcycle trade

The report to the British government showed that Honda had a deliberate

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Approximate Word count = 1539
Approximate Pages = 6 (250 words per page double spaced)