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3H Strategy and International Business 2001/02

Session 13 – The Rover/Honda Alliance and BMW Acquisition of Rover Group

The following comments are extracted from the teaching manual that accompanies Exploring Corporate Strategy. Whilst they may not address directly the issues we covered in the classroom, they offer some interesting and relevant insights.

The Rover/Honda Alliance

At the heart of the alliance between the two companies was the logic of strategic fit and the way in which their strengths and weaknesses complemented each other:

|+ |+ |
|Good styling for European tastes |Dynamic reputation in USA and japan |
|Established European presence |State of the art production processes |
|Wide supplier network |Total quality approach |
|Wide distributor network |Solid financial position |
|- |- |
|Inadequate range, especially in middle segment |No European presence |
|Reputation for poor quality |Poor styling for European tastes |
|Excess manufacturing capacity |Too small to compete successfully with the majors |
|Loss making…...

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