The Alliance Between Honda And Rover

Introduction The partnership between Honda and Rover from 1981 to 1994 was regarded as a successful example at that time. However, four years after the relationship has ended, Rover's portfolio still has all the old ones. On the other hand, it is said that Honda was postponed for four years due to the end of the relationship (Button 2005). This report is divided into two parts. In Part 1, in the case of Honda-Rover, their ability and motivation in the league, what they want from each other, the consequences of the alliance, and why it brings only limited benefits to Honda and Rover I will explain.

The partnership between Rover and Honda is to use each other while maintaining strategic focus and independence. Honda and Rover are about the same in terms of sales, both of which have ambitions of growth - they all have the characteristic that others are pursuing. In the case of Rover, they had problems with quality assurance and management mistakes. Because Rover can absorb Japanese quality culture while using Honda's world famous management system / team, Honda matches perfectly. On the other hand, demand for Honda's Rover is more practical, as it requires Rover's manufacturing facility. (Rover is responsible for its inability to be very inefficient.) Honda also needs to utilize the knowledge of the Rover Europe market and enter the European network of suppliers and contractors.

In the case study of Faulkner (1996) and Potter (1996), the strategic alliance between over and Honda began in 1979. Prior to cooperation with Honda, Rover owned by British Leland Motor Company (BLMC) was greatly affected. Lost profit and market share Rover's product line is not attractive for its buyers, but the main problem is that it is difficult to respond to intense competition in the global automobile market due to its low quality reputation is. In 1979, Rover's top management decided to look for a partner close to Honda. Since Honda's business in Europe was limited at the time, I would like to enter the European market. By the way, they have something to each other. Honda's production know-how, good reputation, and Rover understand the taste of Europe