Title: Internationalization and localization
Author: Hideo Sugiura
Address: Former Chairman of the Board, Honda Motor Co. Ltd., Japan
Abstract: The car industry worldwide faces three major problems: the era of rapid growth has passed; the needs of customers are becoming more diverse; and every manufacturing company faces the need to develop its activities on an international scale. Honda's approach to these problems is to promote internationalization through localization. By this means products, production facilities and management are adapted to the local conditions in which they operate, and locally generated profits are reinvested locally. Although this approach may be costly in terms of short-term profits, Honda believes that it represents the best way to conduct international business on a long-term basis. This paper is based on a speech delivered by Hideo Sugiura to the Financial Times World Motor Conference, Frankfurt, West Germany, 12-13 September 1985.
Keywords: automobile industry; corporate strategy; Honda; internationalisation; management techniques; market conditions; multinational operations; localisation; automotive manufacturing.
Int. J. of Technology Management, 1986 Vol.1, No.3/4, pp.319 - 326
Available online: 27 May 2009