Honda Motor Co. , Ltd. operates under the basic principles of “Respect for the Individual” and “The Three Joys” – commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating. “Respect for the Individual” reflects company’s desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do the best in every situation. Based on this, “The Three Joys” expresses the belief and desire that each person working in, or coming into contact with Honda Motor Co. , Ltd. hould share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society. The company has grown to become the world’s largest motorcycle manufacturer and one of the leading automakers.
With a global network of 466 subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products, ranging from small general-purpose engines and scooters to specialty sports cars, to earn the company an outstanding reputation from customers worldwide. As of December 31 2012, consolidated sales consisted of ? 7,948,095 million (Figure 1 “Consolidated Financial Data”). Consolidated Financial Data Figure 1 “Consolidated Financial Data” http://world. honda. com/profile/financial/ 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. II. The products and services Honda Motor Co. , Ltd. , together with its subsidiaries, engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products worldwide. Its motorcycle line consists of business and commuter models, as well as sports models, including trial and moto-cross racing; all-terrain vehicles; and multi utility vehicles.
The company also produces various automobile products, including passenger cars, light trucks, and mini vehicles; and power products comprising tillers, portable generators, general-purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn tractors, and home-use cogeneration units, as well as thin film solar cells for home, public, and industrial uses. In addition, it sells spare parts and provides after sales services through retail dealers; and offers retail lending and leasing to customers, as well as wholesale financing to dealers.
The Honda represented its efforts in competing in the kei car segment, offering sedan, delivery van and small pick-up platforms on a shared chassis. The Life StepVan had a novel approach that, while not initially a commercial success, appears to be an influence in vehicles with the front passengers sitting behind the engine, a large cargo area with a flat roof and a lift gate installed in back, and utilizing a diagonally installed engine with a front-wheel-drive powertrain. Honda produces a Civic hybrid electric vehicle that competes with the Toyota Prius. Honda Motor Co. , Ltd. is also quite innovative in the robotic development program.
ASIMO is the part of Honda’s Research & Development robotics program. Weighing 54 kilograms and standing 130 centimeters tall, ASIMO resembles a small astronaut wearing a backpack, and can walk on two feet in a manner resembling human locomotion, at up to 6 km/h (3. 7 mph). ASIMO is the world’s only humanoid robot able to ascend and descend stairs independently. Honda’s robot ASIMO as an R&D project brings together expertise to create a robot that walks, dances and navigates steps. For the past few years Honda has developed a machine capable of reading a user’s brainwaves to move ASIMO.
The system uses a helmet covered with electroencephalography and near-infrared spectroscopy sensors that monitor electrical brainwaves and cerebral blood flow – signal that alter slightly during the human thought process. Honda Motor Co. , Ltd. also offers retail lending and leasing to its customers as well as wholesale financing to dealers. If the customer is looking to purchase or lease, as an example, a Honda or Acura product, Honda Financial Services and Acura Financial Services will be very helpful. The customer can also browse special lease and finance offers, estimate payments and even get credit pre-approval if applying online.
Current customers can also learn how to pay bills online and over the phone, sign up for online account access or sign up to make payments automatically. In addition to different bill payment methods, Honda Financial Services and Acura Financial Services offer online account access through Owner Link web site, to find out about payoff information, whether the customers have a lease or traditional financing. III. Market Penetration Strategy Expanding into international markets is a very important step for every company looking for chance to increase sales and profits through new ontacts and opportunities as well as to increase the market shares globally, become more competitive and gain exposure to new ideas, technologies and business processes. As one of the leading multinational companies, Honda Motor Co. , Ltd. has set big plans to grow globally in the future by means of creating world-leading environmental technologies, bring them to life as products, and offer them to more customers; also to achieve a significant advancement toward the next generation of manufacturing systems which will enable Honda to create very advanced products.
Lululemon Athletica, or Lululemon for short, was founded in 1998 by Dennis “Chip” Wilson, an entrepreneur who after 20 years in the surf, skate and snowboard business, saw an outstanding business opportunity in yoga clothing after taking a yoga class. In November of 2000, the first Lululemon store was opened in Vancouver BC, Canada. The first store included a design studio, retail store, and shared space with a yoga studio in order to cover rent expenses. Clothing was offered for sale, and an underground yoga clothing movement was born.
The yoga instructors were asked to wear the yoga clothing products and provide their insights as their feedback was very important in promoting the success of the yoga clothing during the first steps of launching the product. The Lululemon name was chosen in a survey of 100 people from a list of 20 different brand names and logos. The logo is a stylized “A” that was made for the first letter in the name “athletically hip”, a name which failed to make the grade. Wilson proposed a differentiation strategy that not only provides customers with niche product but also a healthy, positive, yoga style way of life.
The initial idea was to have the store become a community hub where people could learn about important aspects of healthy living from yoga and diet to running and cycling as well as discuss their opinions and share experiences. However, this concept became so successful that it was impossible to help the customer in this way in addition to selling the product. And Wilson realized that there was a need to expand. Eight years later, Lululemon has grown to have over forty stores across Canada, thirty eight stores and showrooms throughout the United States, and seven stores and showrooms in Australia.
Lululemon’s product assortment includes fitness pants, shorts, tops, bottoms, jackets, yoga accessories, wear accessories, gear accessories, and gift cards. In 2005, Advent International, in accordance with Highland Capital Partners, a U. S. private equity firm, bought a 48% minority interest in Lululemon for a reported CAD $225 million, and former Reebok chief executive officer Robert Meers became the new Lululemon CEO. Wilson, the founder, now has 42% ownership, with retail staff owning 10% in stocks and shares.
The company formed a partnership with Descente of Japan to oversee Lululemon’s Japanese operations; however, in mid-2008, Lululemon closed its Japanese operations (three stores) to focus on the North American market. As of now, Christine Day, a former Co-President of Starbucks International, is the chief executive officer of Lululemon. In 2007, Lululemon announced their initial public offering and by July 27th, 2007 became a public company. In the fall of 2009 the company launched Ivivva Athletica, a new line targeted for girls aged 6 to 12.
Lululemon’s main factory is in Vancouver BC, Canada, but has outsourced some of its production to factories in the United States, China, Israel, Taiwan, India, Thailand, Peru and Indonesia. As of January 29, 2012, the Company’s products were sold through 155 corporate-owned stores in North America, including 47 in Canada and 108 in the United States. During the fiscal year ended January 29, 2012, the company opened 33 stores in the United States and Canada, including its remaining four franchised stores that were reacquired.
As of January 29, 2012, it operated 18 corporate-owned stores and four showrooms in Australia, one corporate-owned store and two showrooms in New Zealand, and one corporate-owned showroom in Hong Kong. There are now a total of 155 Lululemon stores; the majority of its sales come from its core markets in Canada and the United States. Out of all the retail stores throughout the world, there are 18 stores in Australia, one in New Zeland, one in China and one in the United Kingdom. Financially, Lululemon Athletica has gone from strength to strength. During 2011, Lululemon was given the #13 rank out of 100 of the fasting-growing companies by CNN.
It reported 2011 revenues of $1 billion, up from $712 million the year before, for its trendy $98 yoga pants. Since 2004, Lululemon has increased its revenue at an annual rate of 61% and at the end of 2010 reported $760 million in revenue and at the end of 2011 – $1 billion in revenue. Lululemon plans on expanding its business into the men’s market, increase international sales, as well as adding new products to its line, all while keeping the Lululemon lifestyle. Some of the main competitors of Lululemon are Under Armour, Nike, Gap and Liz Claiborne.
Lululemon, in comparison to the other companies has a higher price of earning that could lead to increased profitability, and investors expect high growth in the future, which indicates an extremely valued company. IV. The product and its tariff number After a detailed analysis conducted over Lululemon Athletica, it has become obvious there is an outstanding opportunity to expand into Zurich, Switzerland. Although it is only the second time that Lululemon entered into a foreign market in Europe, I truly believe that expanding into Zurich will be a great success and a chance to build a strong relationship in a prosperous Swiss community.