Honda case, Honda simultaneously developing hybrids, diesel, natural gas, fuel cell cars. a. Why Honda chosen strategy? Is characteristic company industry? Should Honda pick focus efforts important Honda pursue synergies ( preserve options) developing promoting multiple technologies? b. Honda Motor Company Ltd.

The diversification strategy and the environmentally friendly automobile

Honda is a long established and powerful presence within the international automobile industry. Throughout the past recent years, the company has become focused on a determined diversification strategy which strives to respond to the various needs of vast consumer palettes. The manifestation of this diversification strategy has materialized in the creation of four categories of vehicles -- hybrids, diesel, natural gas and fuel cell cars.

A question is being posed relative to the reasons which might have driven the Honda executives to implement this strategic approach. Two primary reasons could be offered at this stage. The first is constituted by the changing...

In this order of ideas, the events of the past recent years -- such as international tensions between the West and the East, the oil crises or the internationalized economic crisis -- have led to a situation in which people seek prudential spending. Relative to their automobile purchases, the populations seek vehicles which consume lower amounts of gas and can as such be maintained and operated for lower costs. Additionally, there is the social pressure towards environmental stability. This tendency has been accentuated by the growing threat of global warming. The result is that of the population demanding environmental responsibility and this pressure impacts all industries, but even more so the automobile industry.
On the other hand, the rationale could have been constituted by the fact that the other players in the automobile industry have intensified their efforts towards the creation of more environmentally friendly vehicles. In other words, the diversification of the automobiles would have been based on a competitive…