Honda Effect, Toyota Failure and Playstation Success
Honda effect is a series of analysis based on Honda motorcycle penetration in USA during 1960s. The success of Honda in penetrating USA market from nothing, inability to compete with larger motorcycle in USA such as Harley or Triumph, but could find a niche in small motorcycle and then subsequently develop bigger market share is a beautiful story.
But what is more beautiful than Honda success story is the behind story on why Honda is successful. An analysis made by BCG, a reputable consulting firm in late 1970s mentioning that it was a deliberately plan versus late 1980s analysis that it was unpredictable plan, the latest analysis is agreed by Honda top management position.
Was Honda a very smart company or it just a luck? no one can explain -well at least they are not agree on why it works.
In 2010s, the strange case of business or human behavior is happened again. Toyota recall is total failure, from public relationship point of view its wrong, in every aspects. Toyota could not manage its reputation. But on the other side PS4 is winning the battle with XBOX in eight generation consoles war.
With 50 years timeline, 1960-2010, at least it was 2 generation involved in decision making of what a company should choose. But history said that there are a lot of random unpredictable factor that we did not know or did not have an influence.
(Bowen & Zheng 2014) Auto recall crisis, framing, and ethical response: Toyota’s Misteps