This post is in response to an article by Business Insider (written by Chang-Ran Kim) called “Honda CEO Says To Prioritise Quality Over Sales Target”. In this article it states that Honda chose to focus more on improving the quality of their cars rather than hitting the targeted sales margin. I strongly believe that this choice will improve Honda’s competitive advantage in the market for the longer run.

In Honda Motor Co’s President and Chief Executive Officer Takanobu’s speech he expressed his unhappiness with the fact people died in their products with airbags.He shared his points in a very personal manner in which I feel is a suitable way to built a deeper connection between the business and customer.

More importantly, the decision to choose quality over quantity shows that Honda has a strong and clear control of objectives that can be a very valuable character in a highly competitive market like this. Adding to its value preposition, this will increase the trust of consumers in terms of the quality of the products, eventually leading to increase in sales.

In my opinion, Honda’s decision to pursue quality over quantity is the key element that allows Honda to gain a long term competitive advantage against other companies in the automobile industry.