Case Study: Honda Motor Company Analysis
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You are the portfolio manager for Honda motor company. You have been asked to consider the role that six Honda vehicles play in the overall portfolio of the company. The portfolio exercise asks you to consider how the sales performance of these vehicles compares with that of market leader Toyota. You have gathered the following 2010 sales data for Honda, Toyota, and total sales and growth rates for six automotive categories:
(1) Source: Honda Press Release, “American Honda Reports July Sales.” August 3, 2010.
(2) Source: Toyota Press Release: July 2010 Sales Chart
http://pressroom.toyota.com/pr/tms/document/July_Sales_Chart.pdf (Links to an external site.)
(3) Source: Wall Street Journal, “Market Data Center, Automotive Sales.” September 1, 2010.
http://online.wsj.com/mdc/public/page/2_3022-autosales.html (Links to an external site.)
| Table: Sales Data | |||||
| Category | Honda | Sales, 2010 | Toyota | Sales, 2010 | Category; Growth |
| Midsize | Accord | 186,356 | Camry | 189,297 | 1,942,699; +10.2% |
| Small | Civic | 156,832 | Corolla | 167,846 | 1,324,140; – 4.9% |
| Minivan | Odyssey | 62,278 | Sienna | 53,482 | 449,546; +11.0% |
| Midsize SUV | Pilot | 59,681 | 4-Runner | 25,767 | 341,886; +27.3% |
| Crossover | Element | 8,306 | Venza | 29,220 | 1,542,211; +14.0% |
| Pickup | Ridgeline | 9,848 | Tacoma | 60,471 | 1,045,835; +10.6% |
[place-order]
1. Calculate the market share for Honda and Toyota. Calculate the relative market share for Honda.
| Table: Details to calculate market share & relative market share | |||||
| Category | Honda | Market Share | Toyota | Market Share | Relative Market Share |
| Midsize | Accord | Camry | |||
| Small | Civi | Corolla | |||
| Minivan | Odyssey | Sienna | |||
| Midsize SUV | Pilot | 4-Runner | |||
| Crossover | Element | Venza | |||
| Pickup | Ridgeline | Tacoma | |||
2. Plot the positions for the 6 Honda vehicles on the BCG matrix. (Note the relative share axis is inverted)
Growth . .
+30% | Question Marks | Stars |
+25% | | |
+20% | | |
+15% | | |
+10% |_________________________________|_____________________________________________|
+ 5% | | |
0 | | |
– 5% |. Dogs | Cash Cows |
0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4
Relative Market Share
3. Identify vehicles in each quadrant. Suggest a strategy for each vehicle. Add commentary based on market research.
A. Dogs:
- Vehicles: ________________________________________________________
- Strategy: _______________________________________________________
B. Cash Cows:
- Vehicles: ________________________________________________________
- Strategy: ________________________________________________________
C. Question Marks:
- Vehicles: ________________________________________________________
- Strategy: ________________________________________________________
D. Stars:
- Vehicles: ________________________________________________________
- Strategy: ________________________________________________________