solution

An example of emergent strategy is provided by the Japanese Honda Company. Honda attempted to enter the United States’ motorcycle market in 1959. It had four machines: a 50cc superb and larger 125cc, 125cc, 250cc and 305 models. The initial annual target was 6000 machines, with each model representing approximately 25 percent of that total number. The sales value was, of course, heavily weighted towards the larger hikes. Little effort was made to sell the 50cc machines, which were regarded as unsuitable for the US market where everything was big and luxurious. The larger machines, however, developed oil leaks and clutch failures as they were being harder and longer than they were in Japan. The 50cc model attracted attention when used by Honda staff to ride around Los Angeles on errands. Due to the faults in the larger models, Honda had to sell more of the 50cc machine to raise fund. Supported by the slogan “You meet not previously bought motorcycles”. By 1965, Honda had captured 63 percent of the US motorcycle market. The Honda story illustrates the general principles that successful strategies need not be clearly formulated in advance. Such strategies can just emerge. An emergent strategy may therefore be defined as: A strategy developed out of pattern of behavior not consciously imposed by senior management.