This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Honda.
Honda At A Glance – Honda SWOT Analysis
Company: Honda Motor Company, Ltd.
Founders: Soichiro Honda | Takeo Fujisawa
Year of establishment: 24 September 1948, Hamamatsu, Shizuoka, Japan
CEO: Toshihiro Mibe
Headquarters: Minato City, Tokyo, Japan
Employees (Dec 2020): 2,73,156
Ticker Symbol: HMC
Annual Revenue (Dec 2020): Yen¥9.7 billion
Profit net income (Dec 2020): Yen¥1.9 billion
Products & Services: Automobiles | Commercial Vehicles | Financial Services | Automobile Repair
Company Website: www.honda.com
Honda SWOT Analysis – SWOT Analysis Of Honda
SWOT Analysis Of Honda analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Honda SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Honda SWOT Analysis. Below Is The Detailed SWOT Analysis Of Honda.
Honda Strengths – Honda SWOT Analysis
1. The largest motorcycle manufacturer: Many feathers on the crown of Honda motors however, the most notable advantages is the fact that they are the world’s most popular motorcycle manufacturer. It is the largest manufacturer of the market for motorcycles.
2. Largest internal combustion engine manufacturer: Similar to motorbikes Honda motors have an extensive presence in the combustion engine markets that are utilized for jet skis, airplanes and yachts, as well as any other engines that are used for heavy usage.
3. 8 most powerful automobile manufacturing: In addition to being the world’s top automaker, Honda motors is also the 8th largest manufacturer of Automobiles. It has a robust and localized portfolio of products. range.
4. Excellent R&D Excellent R&D: The main reasons that Honda is successful in achieving these levels is due to its emphasis on R&D and the amount of staff used in R&D. This is why Honda constantly comes up with innovative and efficient designs that are popular in the marketplace.
5. High tech product High technology products: Since Honda has products that are high tech that are easy to access, the barriers to entry are very high, and the company’s name hasn’t been beaten over the past few years. If you look at the entire product line of Honda and you’ll be able to see how well-equipped the company is technologically.
6. Brand equity through the decades The brand equity over the years: Honda has been able to offer hit products following hit products. This is why the Honda Accord is one of the most popular cars, and is also its Honda CRV. In the world of motorcycles, there are several models with top engineering that put Honda way ahead in terms of brand’s value compared to its rivals. In 2015, it was number 19 in the top 20 most valued brand , and has a value of 22,5 billion dollars.
7. Portfolio of products: The portfolio of products offered by Honda is huge. It is home to at least 100 different types of cars as well as other automobiles, as well as 100 varieties of scooters and bikes. it’s involved in generators and power tools It also manufactures top quality engines, it’s also exploring robotics, and it has its own aircrafts mountain bikes and all-terrain vehicles. It also is experimenting with alternative fuel vehicles and electric vehicles. As you will see, all these products are advanced in technology and are manufactured by the company of Honda They also are branded with their own distinctive appeal.
8. Market share Market share As you can see from the above information thanks to the advantages of its manufacturing, Honda has a major market share in many of the products it produces.
Honda Weaknesses – Honda SWOT Analysis
1. Prices and costs that are high Prices and costs: Naturally, when you have the high amount of investment into R&D and the most up-to-date technology, the price of the product increases and the cost for the end user is too high. This is a flaw of Honda however it has to be aware of this flaw, since it is not able to lower its brand’s value by lowering costs.
2. The need for products that appeal to the masses: A frequent complaint against Honda automobiles is that the automobiles are only designed meant for upper middle-class people and Honda requires a wider range of automobiles to appeal to the lower middle classes and this is what other auto makers like Hyundai as well as Maruti have been looking at.
3. Hero and Honda separation in India Separation of Honda and Hero in India: At the very least, at least in India, Honda motors suffered severely as Hero as well as Honda were split. In the end, Honda was forced to reconsider its operations in India.
Honda Opportunities – Honda SWOT Analysis
1. Alternative and electric fuel vehicles: This section is geared towards the future of the automotive market where the public are expected to make use of green energy as diesel and petrol and CNG is not without its drawbacks.
2. Automobiles are increasing: The amount of cars all over the world is rising. One of the main reasons is the increasing purchasing capability of people and another reason is that it’s a standard of life now to own cars or motorcycles. So, the amount of the amount of money spent is at an all-time record.
3 Expanding in countries that are developing Expansion in developing countries: Due to the increase in purchasing power and the ease of loading cars to banks purchase of vehicles is growing especially in countries that are developing. Honda must profit from the increase on market demand and take over the market quickly.
4. Product expansion Expanding the product line: the addition of more products into the portfolio , and making new variations to broaden the range of products are two strategies commonly used by automakers. There are numerous considerations to take into consideration prior to launching the new model. However, expansion of the product is essential to increase sales in a market that is competitive.
Honda Threats – Honda SWOT Analysis
1. Competition: The competition from local and national or regional players from all the countries that it operates in, is affecting revenue of Honda.
2. Cost of fuel are rising: While people have more money to buy cars, the cost of fuel is a problem for everybody and is one of the main reasons why many remain hesitant to purchase Cars because, later on, the cost of fuel will be greater than the price of the cost of the car.
3. Intense costs for transportation and other rising transportation and other costs: A major issues that plagues every automobile manufacturer is transportation costs along with production and labor costs. As inflation increases this cost is constantly increasing and, consequently, is a source to be concerned about.
Honda SWOT Analysis Template
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