Honda Motor Company Limited SWOT Analysis

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Honda Motor Company Limited SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm
and the environmental Opportunities and Threats facing that firm. SWOT
analysis is a widely used technique through which managers create a quick
overview of a company’s strategic situation. The technique is based on the
assumption that an effective strategy derives from a sound “fit” between a firm’s
internal resources (strengths and weaknesses) and its external situation
(opportunities and threats). A good fit maximizes a firm’s strengths and
opportunities and minimizes its weaknesses and threats. Accurately applied, this
simple assumption has powerful implications for the design of a successful
strategy.”
Honda Motor Company Limited
Honda Motor is one of the largest vehicle manufacturers in the world. The
company develops, manufactures and markets automobiles, motorcycles and
power products. The company primarily operates in the US and Japan. It is
headquartered in Tokyo, Japan and employed 178,960 people as on March 31,
2008.
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Honda Motor Company Limited SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Diversified operations
¾ Leading market
¾ Expenses related to
post retirement
position and brand
benefits for
strength
employees
¾ Engineering capability
¾ Strong distribution
¾ Employee
productivity
network
External
Opportunities
Threats
¾ Increasing demand for
¾ Economic
hybrid electric vehicles
slowdown
¾ Opportunities in Asian
market
¾ Aviation business
¾ Competition in the
global automotive
market
¾ Appreciating
Japanese Yen
against US Dollar
¾ Tightening emission
standards
¾ ELV directive
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