Analysis Of Operating Environment Of Honda In China

Analysis Of Operating Environment Of Honda In China Honda entered the Chinese market in 1982 by cooperated with China’s Jialing Machinery Factory to produce motorcycles. Currently, Honda has 16 companies in China spreading over nationwide. â€Å"Respect intellectual property; bring joy to people’s life† is Honda’s IPR credo in China. Honda’s presidents all have technical backgrounds. They are important needed advanced technology for the company’s further development. December 2007, Honda’s China portfolio came out includes over 500 registered trademarks, 3,800 granted inventions, model patents and more than 1,100 granted design patents. In an addition, Honda upgraded the former intellectual property office into a division and hence the IPR division was officially established. Resulted, the scope of work was expanded. The division’s main task is to provide support on IPR issues. Although they do not have to report directly to headquarters, they communicate regularly with the head quarters and sometimes the headquarters will give them directions. Meanwhile they will also give their opinions what should be done in China to gain support from the headquarters and improve their efficiency.   The secret of successful Honda in China is they are very creative and innovation, they never imitate others but still create high quality product. Mr. Honda with a mechanical background was aware that machines could operate as long as there is fuel. He created the Honda slogan with the basic principles, â€Å"Respect for the Individual† and â€Å"The Three Joys†- â€Å"the joy of buying, the joy of selling and the joy of creating.† The Three Joys mean to a certain extent which related to the IPR work. The joy of buying refers to customer satisfaction and willing to pay for their products and services. They stand strong that the most important thing is to bring the joy of buying to the consumer. On the other hands, the joy of selling and creating refers to bringing joy to Honda’s dealers and manufacturers by selling and producing Honda’s products which is also an important aspect of Honda business. Honda’s operating strategy is â€Å"where there is a demand, there is production.† The most basic of Honda’s IP strategy is â€Å"providing necessary support on IPR related issues to meet the need of development in the local market.† Honda’s IP work is to create intellectual properties efficiently and secure IPRs in order to provide maximum protection for the customers’ interest and the development of business. In recent years, Honda is facing growing pressure of other fakers and wrong timing. For example, Honda might take 2 or 3 years for counterfeit products to promote in the market after Honda’s original’s launch. However, as soon as Honda launches a new product, some Chinese companies will start counterfeiting. Some counterfeits or fakes appear even before Honda st arts productions which have same trademarks, design and patents. Honda needs to take some time from the application for IPR and it is the situation that Honda is facing in recent years. Therefore, Honda focuses on their work in China, taking full advantage of IPR to deal with the new challenges. They come out with a unique understanding that IPR is a kind of right and they want to take the full advantage of IPR for the development of their business, patent products and fully taking their rights. Resulted, Honda is carrying out a series of IPR activities such as infringements track down, intellectual property education and assisting government’s consumer rights protection campaigns. Spare parts for the maintenance of Honda vehicles are only sold in authorized Honda dealers but yet many companies are producing under the Honda name.