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Honda Motor SWOT & PESTLE Analysis

ID : 52160353| Sep 2020| 15 pages

COMPANY PROFILE -Honda Motor

Business Sector :Automobiles

Operating Geography :Asia, Japan, Global

About Honda Motor :

Honda Motor Co. is one of the largest manufacturers of automobiles and motorcycles globally. Established in 1948, the company has its headquarters located in Tokyo, Japan. The company’s business can be divided into the segments of Automobile, Motorcycle, Financial Services, Power Product and Other Businesses. In the Automobile segment, it produces passenger cars, light trucks, and mini vehicles. The company also provides financial services like retail lending and leasing services and wholesale financing to dealers as a part of its Financial Services. For its Power Product and Other Businesses segment, the company sells power products comprising general purpose engines, portable battery inverter power sources, lawn mowers, riding mowers, snow blowers, outboard marine engines and more. The most significant product of this segment is its HondaJet, a cheaper alternative to private flying.
The company’s assembly plants are located all over the globe in China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, México, New Zealand, Malaysia, Indonesia, India, Philippines, Thailand, Vietnam, Turkey, Taiwan, Perú and Argentina. The company has ranked 29 on Forbes Fortune Global 500 List in 2019.
Honda Motor’s Vision is to “Serve people worldwide with the “joy of expanding their life’s potential””. The company’s USP is that it is the world's largest manufacturer of internal combustion engines. As per 2019 records, the company is employing 219,722 people on a consolidated basis and 22,675 people on a non-consolidated basis.

Honda Motor Revenue :

Yen 15,888.6 billion (FY ended March 31st, 2019) (year-on-year growth Nil) Yen 15,361.1 billion (FY ended March 31st, 2018) (year-on-year growth of 9.7%) Yen 13,999.2 billion (FY ended March 31st, 2017)

Competitive Analysis of Honda Motor

SWOT
PESTLE
The SWOT Analysis of Honda Motor is presented below:
Strengths
Weaknesses
1. Global presence in terms of employees, manufacturing units and markets
2. World’s top motorcycle brand & leading Car manufacturer
3. Huge Focus on Research & Development leading to innovative products
4. Diversified product portfolio providing synergies
5. High Brand Equity resulting in higher brand recall and sales
1. Recall of cars due to Takata airbag inflators impacting Brand and sales
2. Over reliance on North American Sales can hurt as that market is saturated
Opportunities
Threats
1. Electric and Hybrid Cars - the next big segment
2. Huge potential for sales in the developing markets
3. Global automotive Industry growing at a steady rate
1. Intense Competition can threaten to decrease sales and profitability
2. Increase in use of public transport modes by people
3. Increasing Fuel Prices can hurt vehicular sales
4. Environmental and global regulations by Governments
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Detailed SWOT Analysis of Honda Motor

 

Strength

1. Global Presence in terms of employees, manufacturing units and markets: Honda motors employ over 210,000 people globally. With sales of 4.7 million cars, 17 million motorcycles and 6 million power products, Honda truly transcends boundaries. It has a huge presence in Japan, North America, Europe and Asia.

2. World’s top motorcycle and leading car manufacturer: Honda is the largest motorcycle manufacturer in the world by volume, the largest internal combustion engine make with 14 million engines per year, and the 8th largest automaker in the world. Thus, Honda is a leading brand, and is a market leader in many countries.

3. Focus on Research & Development leading to innovative products: Honda has its competencies in product innovation and development. The conglomerate has 20 R&D centres across the globe, in countries such as the Japan, the USA, Turkey, Italy, India, Indonesia, Thailand, China, Germany and the UK. It invested Yen 730.7 billion in its R&D arms for the financial year ending March 2018. As a result of Honda’s huge investment in R&D, it develops some amazingly engineered products. At the core of Honda products are its engines, and its engines are praised for their durability, fuel efficiency, reliability and quietness. According to the Reliability Index, Honda is 2nd most reliable engine maker in the world.

4. Diversified product portfolio providing synergies: Honda Motors is a conglomerate with a much diversified portfolio under its belt. It has expertise in producing Cars, Motorcycles, mountain bikes, and all - terrain vehicles, Jet Engines, Artificial Intelligence and Power Generators among other things. Such a wide array of products helps them to create significant synergies in their production techniques, and improve their sales.

5. High brand equity resulting in higher brand recall and sales: Honda motors are consistently lauded for its quality products and as such demand a premium Brand Image in the world of automobiles, and engines. It is ranked as the 23rd most important brand in the world. Such a high brand image means customers are satisfied with the products that translate into high sales for the company.

Weakness

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Opportunity

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Threat

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Check Out Analysis of Other Relevant Companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Honda Motor Analysis Report

1. Honda Motor website - https://world.honda.com/group/RandD/index.html

2. Honda Motor About Us - https://global.honda/about/profile.html

3. Honda Motors Forbes Company Profile - https://www.forbes.com/companies/honda-motor/

4. Worldwide number of automobiles sold by Honda Group - - https://www.statista.com/statistics/267276/worldwide-automobile-sales-of-honda/

5. FORBES Most Valuable Brands List 2019- https://www.forbes.com/powerful-brands/list/#tab:rank

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Honda Motor SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Honda Motor SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/honda-motor/ [Accessed 26 Nov, 2020].

In-text: (SWOT & PESTLE.com, 2020)

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Honda Motor SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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Honda Motor SWOT & PESTLE Analysis
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