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Honda Industry Analysis

1760 Words8 Pages

Industry analysis is a method approach to analyzing firm's industry environment using model such as PEST, Porter’s Five Forces or another approach. Furthermore, it is also, considered as a market business tool contributing a concept of the complex situations in the business. Industry analysis measures in a way the market conditions, economic; political, social, technological issues that have an impact in how the industry operates. Also, critical factors include entry barriers, power of buyer and suppliers and substitute products or services, and the threat of rivalry. Honda, one of the largest company in Japan which will be discuss in this paper. Since the automotive industry is an exciting its effect people daily life where most people …show more content…

Followed by the goodwill created throughout the time and the loyalty of the customers can be used to increase the productivity as well as profitability of the business in the future. Locations also serve as an important factor to increase business operations. However, the government tax burden can pose a threat by inflation causing wages to rise.Also, the economic increasing factor such as prices will reduce the sales by significant numbers. Market segmentation is a group of people with similar needs. (honda business plan).The efficient managers are one of the most important element that grow the opportunities in the business. Here is Honda CEO message to shareholder, for the first quarter of the year 2014 “In such an economic environment, Honda's consolidated net sales and operating revenue for the fiscal year ended March 31, 2014 amounted to ¥11,842.4 billion, an increase of 19.9% compared to the previous fiscal year, due mainly to increased revenue in both our automobile and motorcycle businesses and favorable currency effects”( (world.honda.com.). The enhance of the new technology and invention is an opportunity where company can build a new market such as the hyper car market. The customer serves for auto is an opportunity that is most important particularly in an extremely competitive market. For example, here in Saudi Arabia, the ministry of commerce and industry have launched a questionnaire for the “Performance of the Automobile Agencies” according to the ministry the “MCI, 67 % of the Consumers are Dissatisfied with the Performance of the Automobile Agencies in the Second Questionnaire”(Saudi Arabia the ministry of commerce and industry). Further More, in the questionary Honda, was one of the lowest company with dissatisfied customer serves is one of the primary opprtinty that car company should consider. If a customer thinking to buy a new car would he be thinking to choose

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