Innovation and Success at Honda Motor Co

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Honda Motor Co. Ltd. is one of the world leading manufacturers of automobiles and also is the world largest manufacturer of motorcycles (Honda Motor Co.Ltd, nd). Honda can be recognized as internationally because of their organisation product expertise and leadership. They developing and manufacturing wide variety of products. The Company earn an outstanding reputation from customers worldwide with their own efficient internal combustion engine technologies for not only small general-purpose engines but they also produce all those technologies for specialty sports cars.

As a worldwide well known organisation, Honda Motor Co., Ltd. carries the principles of "Respect for the Individual" and "The Three Joys" (Michelle, 2008). The three joys include The Joy of Buying, The Joy of Selling and The Joy of Creating. On the other hand, "Respect for the Individual" represent the desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. "The Three Joys" represent the belief and desire that each person working in, or coming into contact with our company, directly or through or products, should share a sense of joy through that experience. With all these principles that they strongly follow, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has operated all their activities with a commitment, which is to protecting the environment and enhancing safety in a mobile society. Honda Motor Co. Ltd also had a slogan which is "The Power of Dream" (Honda Motor Co.Ltd, nd).

Honda Motor was operates four business segments which are automobiles, the motorcycles, power products and others, and they even involved in provide financial services (Honda Motor Co.Ltd, nd). The automobile segment produce by Honda Motor was include 79 percents of total revenue which majority producing passenger cars, minivans, multi-wagons and sport utility vehicles (SUV), and mini cars. Examples car that Honda Motor produce and familiar by us are such as Honda Accord, Honda Civic, Honda CRV, Honda City, Honda Jazz, and etc. Then is motorcycles segment which is include 13 percents in total revenue which consist of sport (trial and racing), and commuter models, as well as all-terrain vehicles, personal watercraft, and multi utility vehicles. It produces motorcycles, ranging from the 50cc class to the 1800cc class in cylinder displacement.

Besides that, the financial services segment which include 4 percents in whole. Honda offers various financial services that include retail lending and leasing to customer, as well as other financial services, such as wholesale financing to dealers. The last segment is the power product and others which also include 4 percents in whole which Honda Motor manufactures various power products, including solar cell batteries, power tillers, portable generators, general-purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carries, power sprayers, lawn mowers and lawn tractors.

Honda s operations are located across Japan, North America, Europe, Asia and other regions. The majority of Honda organisation revenues are came from North American and domestic markets in the automobile division. The Asian countries such as China, India, Indonesia, Korea Malaysia, Pakistan, the Philippines, Singapore, Taiwan, Thailand and Vietnam the motorcycle segment contributed the majority revenues. Honda's operations are operating among 33 factories across the globe; four of factories are located in Japan. Honda has located its operations in close proximity to customers. With this, they can maximize production efficiency, cost competitiveness and customer satisfaction; Automobiles products are operate at two sites in Japan which are Saitama and Suzuka. Other major overseas production sites are located in Ohio and Alabama (U.S.), Ontario (Canada), Swindon (U.K.), Ayutthaya (Thailand), Haryana and Uttar Pradesh (India) and Sao Paulo (Brazil) (Peter, 2002).

Description of the Innovation

Honda FCX Clarity is a green motoring technology that provides excellent and efficient solution in facing global warming issue for today (Blain, 2007). The FCX Clarity is a zero-emission, hydrogen-powered fuel cell vehicle based on the entirely-new Honda V Flow fuel cell platform, and powered by a compact, and efficient and powerful fuel cell stack. Featuring impressive improvements to driving range, power, weight and efficiency, the FCX Clarity is Honda's real-world fuel cell flagship.

The Honda FCX Clarity uses an electric motor, which is a much more energy efficient use of the Hydrogen than in a regular combustion engine (Page, 2007). Hydrogen combines with atmospheric oxygen in the fuel cell stack, where chemical energy from the reaction is converted into electric power used to propel the vehicle. Additional energy captured through regenerative braking and deceleration is stored in a lithium ion battery pack, and used to supplement power from the fuel cell, when needed. The vehicle's only emission is water. Hydrogen fuel can offer the promise of zero emission technology, where the only by product from the cars is water vapor ("Future Hydrogen Fuel Cell Cars", 2006).

Since Honda FCX Clarity is a hydrogen car, thus, hydrogen fuel cell will be its energy carrier. Hydrogen fuel cells are what will power the 'Hydrogen Highway' of the future. Hydrogen fuel cells are electrochemical engines that come in several different varieties with the most common being the Proton Exchange Membrane (PEM) fuel cells, also called Polymer Electrolyte Membrane fuel cells. PEM fuel cells use oxygen from the air and pressurized hydrogen to create electricity, heat and water (steam) as by-products ("Hydrogen Fuel Cars", 2005-2010).

Fuel supply will be a huge issue for the Honda FCX Clarity owners (Page, 2007). So, hydrogen fuelling stations are an essential component to the success of future hydrogen cars running upon the nation's hydrogen highways. With hydrogen fuel stations in place, one of the largest infrastructure challenges will be solved. But, this will not happen overnight. The hydrogen fuelling stations of the future may be either standalone ports or a complementary part of current gasoline stations.

Then Honda Motor is coming with an innovative idea, which Honda Motor decided to build a home-based hydrogen generation and fuelling device (Steven, 2010). In other words, Honda decided to develop an energy-saving power station for the whole home. The hydrogen system is running on a home existing natural gas supply, the Home Energy Station IV produces and stores hydrogen, while providing heat, hot water and electricity to an average-size home. This innovation home-based hydrogen generation and fuelling device can reduce both cost and carbon dioxide emissions for the consumer. Home Energy Station IV helps produce heat and electricity and also to refuel an FCX Clarity can reduce CO2 emissions by an estimated 30 percents and energy costs by an estimated 50 percents.

Success

Environment Friendly

Nowadays, green campaign is a very hot topic in the societies. Many countries is started green campaign to create awareness among the public to protect the environment because the environment facing a lot of problem and become more serious. Among the environmental problems, Global Warming and Pollution Level are the problems that take the most concern of community.

This new zero emissions and environment friendly car help them Honda to successfully stay in the green technology market and automobile industry. Honda FCX Hydrogen Car is using the full cell combines oxygen and hydrogen to create electricity to power the electric motor to run the car. Hydrogen is similar with renewable energy technologies like solar and wind power and hydrogen fuel cells generate electricity with no conventional pollutants as it can help to reduce greenhouse gas emissions, reduce pollution and improve air quality. In combination with hydrogen based on renewable energy sources fuel cells provide an emission free mobility. Other than that, this car is very quiet when operate thus very useful in areas where noise pollution is unwanted ("Honda makes first hydrogen cars", 2008).

Hence, loyal Honda buyers or those who are looking for reliable and environmentally responsible ride will choose to buy Honda FCX Clarity Hydrogen Car as well as people who are passionate about the environment and living a green lifestyle ("Failure: The Secret to Success", 2011).

Honda FCX Clarity wins 2009 Green world car of the Year Award

Honda FCX Clarity was declared the world Green Car on April 9, 2009 at a press conference hosted by the New York International Auto Show and Mobil 1. Honda CFX Clarity was chosen from an initial entry list of 22 contenders nominated by 59 World Car jurors from 25 countries worldwide.

Honda FCX Clarity, hydrogen fuel cell-powered sedan now currently available on a limited retail basis. This vehicles only emission is water, and the fuel efficiency is three times that of a model gasoline-powered automobile and two times of those gasoline- powered hybrid vehicle ( "Honda FCX Wins 2009 Green World Car of the Year Award", 2009).

Honda FCX Clarity is the first available commercially automobile powered by Hydrogen Fuel Cells. Hydrogen car had standard host features which including seating for four, six airbags, anti lock braking systems (ABS), climate-controlled seats, XM satellite radio and other components which a normal cars have.

Due to the rising price of gasoline and greater consciousnesses of the long term effects of the fossil fuels had created a public demand for energy alternatives. And where there was a demand in the markets, individuals and corporations will find solutions to produce product that meet those demands in order to turn a profit. If Honda had profit from this innovation, there will be more hydrogen refuelling station and other competitors will release other fuel cars. Further invention will be encouraged by this new innovations and which also including ways to convert old gasoline cars into hydrogen cars. Solely, the fossil economy will be replaced by a hydrogen fuel economy ("Monday's Success story: Honda FCX Clarity", 2007).

Hydrogen car advantages the New Business Opportunity

Hydrogen is the most abundant elements in the universe, so hydrogen powered cars have already make their debut. Well, that days is already here. Although hydrogen cars are not yet ready for customer yet, but many manufactures are showing off their concept and prototype to get customer attention ("Hydrogen Powered Cars", 2005-2011).

Hydrogen cars are chemical reaction rather than a burning process form motive power conventional cars burn fossil fuel and Hybrid cars use smaller amounts of the same fuel to charge theirs batteries. By using hydrogen cars concept, it is safe to invest in hydrogen fuel cell technology which when commercially deployed will reduce automobile emissions to non polluting water vapour.

Hydrogen cars betters than Hybrid cars in certain ways so we need to compare and understand their characteristics. Hydrogen fuel burn faster than fossil fuel and therefore is much more efficient. Besides that, hydrogen fuel generates lower engine operating temperature and there is no emission of hazardous fumes by its use. Hydrogen fuel are much more attraction because it do not provide any pollution to the environment.

Hydrogen car is not a new concept, it is because pressure from the big oil companies it has been suppressed and kept out of the public eye. Hydrogen cars is use fuel cell transform it into chemical energy electric and mechanic energy to drive the car. Before that, people are reluctant to use hydrogen car but now due to unstable gasoline price, everyone are looking for the substitute which are much cheaper ("Hydrogen Car Advantages the New business Opportunity", 2005-2011).

Failure

Infrastructure

According to an article, the failure of Honda FCX Clarity car is the infrastructure problem (Healey, 2007). Honda FCX Clarity needs hydrogen to generate electric power so that the electric motor can run the car. The switching of the petrol powered car to hydrogen fuel car is requiring a whole new fueling infrastructure such as switching the existing gas station to hydrogen fueling station.

Although Honda claims that the FCX Clarity offer better fuel efficiency that the traditional petrol powered car but the owner of the car is facing difficulties in finding hydrogen fuelling station (Richard, 2008). This problem causes the driver cant' drive their car far from home as it difficult to find fuelling station due to lack of filing station that sell hydrogen. Therefore, people that live around the area that have the hydrogen fuelling station only can purchase the hydrogen car.

Furthermore, switching to hydrogen fuelling station is not economically feasible as it required to new pipeline for hydrogen it will cost billion of dollar .Even the government encouraging and pushing to build more the hydrogen station but there are still very few fuelling station because building new hydrogen fuelling station or replacing gas station with hydrogen station is expensive.

Companies do not want to invest in the building hydrogen fuelling station because the range of hydrogen car and the demand for hydrogen fuel station is limited (Barbieri, 2008). At the mean time, California has the most fuelling stations right now but other place such as Washington or New York state still lack of fuelling station (McGinnis, 2011).

Hydrogen Fuel Cell Disadvantages

Due to concern of global warming, many alternative sources of energy had been introduce such as solar power, and wind power which effectives in their own ways. One resource that drawing interest is hydrogen is an extremely clean-burning fuel but it does have some drawbacks.

Lack of material is one problem development of hydrogen fuel as a viable source of fuel. Hydrogen car are built by copper, but there is now enough supply of copper for mass productions of this kind of vehicles. Although aluminium considered as a good replacement for copper, but they take up too much space inside the motor ("The Disadvantage of Hydrogen Fuel Cell Cars", 2011).

Hydrogen is the most abundant element in the universe, and it has the lowest density of any element in the universe. the best method of producing hydrogen is to use wing and sunlight to power the process of electrolysis. Water had been use by electrolysis to produce hydrogen by separating it from the elements of oxygen. Although this method doesn't generate any pollution, but it is rarely to used because it will cost too much money to implement widely ("Hydrogen Fuel Cell Disadvantages", 1999-2011).

Hydrogen car now is quite new for the customer, if that if hydrogen cars are sold, it is costly for automakers to support them nationwide, it is because now hydrogen car are still under testing period. When a customer purchase car form one of the major autos manufactures, the assumptions is that if the car is break down, they hope that can get it serviced at the dealer anywhere apart from the autos manufactures. Due to, this hydrogen still a new concept so the auto manufactures haven't build the maintenance support centres nationwide ("Why Can't I Buy A Hydrogen Car now?", 2008).

Learning Points

The first learning points that I can learn from the success factor is that green environment is very important to our world. It is because the environment is polluted nowadays because of development in the whole world and many disasters happened in other countries like earthquake, flood, winter freeze and wildfire, hence protect the environment from being continually polluted is to promote the green environment in the whole world by do more green campaign to create awareness among the public to protect the environment or producing more environment friendly products to be used by the public to protect the environment.

Because of this issue, Honda Company already produces the environmental friendly car that is Honda FCX Hydrogen Car to be sold in the market for the interested customers to buy it to protect the environment. It is because Honda FCX Hydrogen Car is using the fuel cell combines oxygen and hydrogen to produce electricity power to run the car by electric motor. Hydrogen is similar with renewable energy technologies like solar and wind power and hydrogen fuel cells generate electricity with no pollution as it can help to reduce greenhouse gas emissions, reduce pollution and improve air quality. In combination with hydrogen based on renewable energy sources fuel cells provide an emission free mobility. Other than that, this car is very quiet when operate thus very useful in resident areas where noise pollution is unwanted for the citizen.

Hence, Honda company loyal customers or those who are looking for reliable and environmental friendly vehicles will choose to buy Honda FCX Clarity Hydrogen Car as well as people who are taking care about the environment and living a green lifestyle. So, it is very important to create awareness among the citizen to buy environmental friendly vehicles to protect the environment.

The second learning point is that Honda FCX Clarity wins 2009 Green world car of the Year Award means that Honda Company is very successful at producing efficient green car until it wins the award of world Green Car on April 9, 2009 at a press conference hosted by the New York International Auto Show and Mobil 1. Honda CFX Clarity was chosen from an initial entry list of 22 contenders nominated by 59 World Car jurors from 25 countries worldwide. It also means that Honda FCX Clarity is better than other green car like Hybrid car because the emission is only water, and the fuel efficiency is three times better than gasoline-powered automobile and two times better than gasoline-powered hybrid vehicle that is available in the market now. Other than that, Honda FCX Clarity is the first available commercially automobile powered by Hydrogen Fuel Cells and Hydrogen car had standard host features which including seating for four, six airbags, anti lock braking systems (ABS), climate-controlled seats, XM satellite radio and other components which a normal cars have, so it will make the customers to buy the Honda FCX Clarity if the performance is better than other cars and it can protect the environment too. In addition, hydrogen is cheaper than other fuel that will make the customers choose to buy hydrogen car in the future to save their cost for the fuel.

The third learning point is that Hydrogen car create the new business opportunity, it is because hydrogen car is very less at current market now and the Honda Company is very successful at producing Honda FCX Clarity until it wins the award, hence Honda Company will make a bigger profit from the current market if it reach the right target market. In addition, Hydrogen cars betters than Hybrid cars in certain ways that is Hydrogen fuel burn faster than fossil fuel and therefore is much more efficient, so the customer will choose to buy hydrogen car if the performance is better than other cars. Besides that, hydrogen fuel generates lower engine operating temperature and there is no emission of hazardous fumes by its use because it does not provide any pollution to the environment, so the customers will choose to buy hydrogen car if they want to protect the environment. Other than that, Hydrogen cars are use fuel cell transforms it into chemical energy electric and mechanic energy to drive the car. Before that, people are reluctant to use hydrogen car but now due to unstable gasoline price, everyone are looking for the substitute which are much cheaper, so it will create the new business opportunity to the car industry to produce more cars that is using hydrogen to make the car to run, ultimately the manufacturer of the car will make a bigger gain from the production of hydrogen car.

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