Honda
Strategic Concepts & Mechanics
Primary Evidence
"Honda used speed, or more accurately, decision cycle time, to create opportunities in the marketplace and then provide products that customers wanted to buy more than they wanted those of the competition. The critical element was that Honda was both learning what these “wants” were and was helping to shape them at the same time."
"In fact, the period of greatest Japanese success was the following decade. During the 1980s, for example, General Motors’ US market share went from 52% to around 30%, with most of this lost to the Japanese. What happened? Ask anyone who bought a Honda, Toyota, or Datsun (as Nissan products were known until 1984) back then. They came expecting to get great gas mileage, which they did, but, “Surprise!” The things ran like a Swiss watch, fit together like a Rolls Royce, and seemed to last forever. In the language of strategy, the Japanese engaged with the expected (cheng)—gas mileage—but won with the unexpected (ch’i): fit and finish, driveability, longevity. Contrast this with GM’s economy offerings of the period, the Vega and Chevette. Their gas mileage was as good as the Japanese, but in all other aspects, they were pretty ordinary. All cheng; no ch’i. Market share cut by 40%."
"Consider that Honda and Toyota can bring out a new model in roughly 2 years, with superb quality, while it still takes Detroit at least a year longer."