Thursday, January 23, 2020
American Honda Motor Corporation :: Essays Papers
American Honda Motor Corporation Honda Corporation and U.S. Markets After investigating the U.S. market and getting positive feedback, Honda exported over 50,000 CR-Vs to the U.S. in 1997. The target markets for this sporty looking new CR-V were consumers between the ages of 23 - 34, referred to sometimes as generation X. At $20, 000 however, in comparison to its competitors who offer vehicles at a cheaper cost, one might ask the question - why such a high price tag? An article on generation X from demographics.com sums the answer to this question up nicely: Ã § 54 percent of Gen Xer's have established a financial plan Ã § 88 percent want investment advice Ã § 46 percent already own mutual funds Ã § Population size of 44 million and growing The increased use of information technology in today's economy also creates an environment that facilitates better-informed decision-making. The internet, a powerful source for information is more than readily accessible. For instance, instead of watching 30-second commercials on television, generation X can tap into the net and spend as much time as they need researching products before making a purchase. As a result, generation X is better educated than previous generations and has more disposable income. They value quality more so than ever before and basically look for products that work for them. Economic forces that will impact Honda To continue selling record breaking units Honda will have to keep in touch with the needs of its changing customer base. For instance, the fastest-growing states, metropolitan areas, cities, and countries were concentrated in the South and West, according to the Census Bureau. Ã § The states whose population rose the fastest between 1996 and 1997 were Nevada (4.7%), Arizona (2.7%), and Georgia and Utah (both 2,1%). Meanwhile, Las Vegas, was the most rapidly growing metropolitan area from 1990 to 1996, with a 41% population increase, followed by Laredo, TX (33%), and McAllen-Edinburg-Mission, TX (29%). Ã § The story for cities was much the same. Among those with more than 100,000 people in 1996, the fastest growing from 1990 to 1996 were Henderson, NV (88%), Phoenix, San Antonio, and Houston. Each gained more than 100,000 people during this period. Ã § According to projections, the U.S. population in 2050 will have risen to about 394 million mostly in part due to increasing ethnic groups. Significance of these trends In 1997, an estimated 26 million persons, or nearly 1 in every 10 residents of the United States, were foreign born, the highest level since 1930.