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Reviving the Power Products Business
Honda began manufacturing power products in 1952, just four years after the company was founded. Naturally, motorcycles created a technological base for those power products. For example, the company's first general-purpose engine, the Type H, was a modified version of the Type F engine used in the Cub. Therefore, in a way the company's new business in power products was propelled by technology acquired through the manufacture of motorcycles.
The road to success in power products would not be easy, though. While Honda was already enjoying a reputation as a premier maker of motorcycles, it had no experience with power products. Moreover, the value the customers looked for in power products varied according to their particular applications. Added to that was the fact that many more types of power products had to be manufactured in order to satisfy market expectations. These elements combined to create a far more complex business than the one involving motorcycles. A key aspect of the business is that power products are generally divided into two categories: engines and complete machines. Accordingly, how a company might operate can vary depending on the category. Engines are supplied mainly to OEM companies as single units, while complete machines include a range of end-user products such as tillers. |
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