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Honda Motor Company Limited (SWOT Analysis)

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“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.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Diversified operations
  • Leading market position and brand strength
  • Engineering capability
  • Strong distribution network

Weaknesses

  • Expenses related to post retirement benefits for employees
  • Employee productivity

External

Opportunities

  • Increasing demand for hybrid electric vehicles
  • Opportunities in Asian market
  • Aviation business

Threats

  • Economic slowdown
  • Competition in the global automotive market
  • Appreciating Japanese Yen against US Dollar
  • Tightening emission standards
  • ELV directive
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