Swot Analysis Of Honda Motor Company

International Business – BUSN 407

Fall-2015

Topic: Honda Motor Co

Table of content Sr. no

Topic

Page no

1

Introduction

3

2

SWOT Analysis

5

3

Challenges

6

4

Conclusion

8

5

References

9 1. Introduction 1.1 Company profile Honda is a well recognised brand in almost all the parts of the world as it leads the motorcycle market in the world as well as is one of the largest manufacturers of cars and other automobiles. It is a Japanese multinational corporation which has its business in all the habitable continents. Apart from the automobiles, it also manufactured power equipments as well as has shown interest in robotics, of late. Since 1959, the world's largest motorcycle manufacturer is also world's largest manufacturer of internal

It stands at sixth place in automobiles. With assembly plants, showrooms, dealerships spread all over the world, it has a spectacular brand image which is able to serve the customers wherever they are. Environmentally, it is doing good by making electric as well as fuel cell cars.

2.2 Weakness

Even after over 60 years of market stay, isn't the market leader in several categories. Political issues have stalled assembly plants in some countries. Doesn't use advertising and brand campaigns as aggressively as its competitors.

2.3 Opportunities

With several sponsorship deals with national as well as international events, it is in to conscious brand building efforts with targeted advertising. Worldwide assembly plants ensure easy service to customers who, in turn, give good word of mouth publicity. It has been able to convince the customers of safe, value for money and reliable products. At the same time, the company has an advantage over others in markets where others don't produce automobiles.

2.4 Threats

New government policies on import of parts as well as opening new plants can make things difficult in certain markets. Lack of advertising focus can give advantage to

It trades in the stock exchanges of Japan, United States among at least four other markets. Being an automobile manufacturer, it has two key focus areas, motorcycles and cars.

The motorcycle buying demographics, 18-34 year old males, have been a traditional stronghold. This gives Honda a clear advantage over others as it has over six decades of experience in recognising and dealing with this demographics in almost all the markets in the world with special focus on Asia.

However, the same is not well for the car segment. It does have a luxury car segment, Acura, but it isn't bringing much revenue. At the same time, it faces stiff competition from local car makers in the big markets like US and Europe. The traditional demographics here has been the family, especially the newly married couples who are trying to buy their first family cars. Honda needs to go aggressive with advertising as well as sale to address this demographics where it hasn't attained the motorcycle type customer loyalty.

It needs to address the concern of the rising middle class who is dwelling on the border of small cars and the sedan. It needs to tell people, with attractive pricing strategies like financing and EMIs, the longer cars can be