Honda Swot Essay Example for Free

Honda Swot EssayIn 2012, the caller owned 42,000 patents and had pending applications for 29,000 more than patents. 3. Strong trademark image. Honda has a reputation for producing the best quality engines around the world. The companys brand was the 21st most valuable brand in the world valued at $17 one thousand million and was only behind Toyota, Mercedes-Benz and BMW, according to Interbrand. 4. Motorcycle commercialize sh atomic number 18 in Asia. In 2012, Honda sold 80. 5% of its motorcycles in Asia, the market that has greatest growth potential. Having the largest motorcycle market sh atomic number 18, Honda is well positioned to compete with other companies for the sales and profits. Weaknesses 1. Product recalls. Over 2011 and 2012, Honda recalled more than 1,000,000 vehicles to fix various faulty parts and manufacturing defects. Car recalls severely amends firms brand reputation and future sales. 2. Weak position in Europe automotive market. Honda holds a very w eak position in the Europes automotive market and has primary(prenominal)tained only 1. 1% market share in 2012. Although, Europes market share is declining at the moment and galore(postnominal) companies experience losses, the market is huge and firms can benefit from the economies of surpass. 3. diminish sales. In 2012, Hondas revenue meet the lowest point in 4 years to ? 7. 948 trillion. Honda sales were down by 11. 2% in North America, which represents more than 40% of total Honda revenues. Revenue from Asia and Europe also declined by 21. 3%, 15. 5% respectively, signaling poor firms performance globally. Opportunities 1. Increasing fuel prices. Hondas strong idiom on engineering fuel-efficient vehicles (Honda Insight and Honda Civic) with flexible fuel, hybrid and hydrogen engines will pay off referable to increasing fuel prices. 2.Positive outlook for global motorcycle industry. Motorcycle industry grew by 4. 2% from 2011 to 2012 and is expected to grow by at least 6% t o 2016. Honda is the worlds leading maker and seller of the motorcycles having more than 29% of the market share. Growing demand for the motorcycles is a great opportunity for the company to expand its global market share and grow sales. 3. Growing global demand for environment hail-fellow-well-met vehicles. The declining levels of fossil fuel sources and the rising CO2 emissions became a major concern for many a(prenominal) people and many governments.Therefore, ecologically friendly cars, powered by hybrid, hydrogen or flexible fuel engines became very popular. The market for such cars was $33 billion in 2010. Hondas focus on hybrid and hydrogen render engines is a great opportunity to capture the market share for this new demand. 4. Growth through acquisitions. Honda could greatly benefit from strategic partnerships or acquisitions of smaller competitors. The business would add new brands to its portfolio, achieve greater economies of scale and would benefit from synergies be tween different firms. Threats 1. Intense competition. Honda faces more intense competition than ever.New small entrants are disrupting the market with their capabilities in producing electric vehicles or alternative fuel engines. Big companies are restructuring themselves to become more efficient. As a result, firms like Honda are suffering from competition from both big and small players. 2. Decreasing fuel prices. Some analysts forecast that future fuel prices will drop due to extraction of shale gas. This would negatively influence Honda because the company is focusing on hydrogen fuel, hybrid and flexible fuel engine cars, which are not so attractive to consumers when fuel prices are low. . Rising raw material prices. Metals are the main raw materials used in vehicle and motorcycle manufacturing and the rising price of the raw metals raises overall output signal costs for Honda. 4. Natural disasters. Honda has manufacturing facilities in Japan, Thailand, China and Malaysia. Th ese countries, including others, are often subject to natural disasters that disrupt manufacturing in the facilities and decrease Hondas production volumes. 5. Strong yen. Honda earns most of its profits outside Japan and appreciating yen poses a great threat to Hondas profits.