1) Honda was able to manufacture better quality motorcycles at lower costs through practices like Kaizen (continuous improvement), Just-in-Time (JIT) manufacturing, and extensive quality statistics. 2) While Harley-Davidson initially struggled against foreign competitors like Honda, it was able to bounce back by learning Japanese manufacturing techniques, rebranding its image, and engaging customers through organizations like HOG. 3) It is debatable whether focusing solely on quality improvement without considering costs is the right approach. Harley-Davidson has found success due to strong branding and marketing rather than competing directly on price.