Honda Swot External Factors

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Threats for Honda :

- Increasing fuel price

- Competitors (Toyota, Ford, Proton, others)

- Public transportation

- Price Competition

- Economic fall off, caused an increase in price from every aspect.

- Customer need and want that changing rapidly

- Natural disaster.

- SWOT MATRIX

- Strengths

- Huge investment on R&D

- Strong brand image and tagline

- Dealers in all over the world

- Very well-known brand especially in Asia

- Weaknesses

- Weak position in Europe market

- High cost thus, high price

- Product that is only targeted for the middle-upper class.

- Limited market for “luxury” car.

- Similiar design from one to another

- Opportunity

- Alternative fuel vehicle that global environmentally friendly

- Automobile market (demand) is increasing by time

- Increasing fuel price

- Product expansion in developing country

- Trend

SO Strategies

- Using their huge investment on R&D, Honda could use new technology that produce a vehicle that using alternative fuel that is global environmentally friendly.

- With their strong brand image, Honda can be easily known when thy expand their product to a new developing country.

WO Strategies

- Honda could use the opportunity to expand their product to developing country, to reduce the cost of production and produce a cheaper vehicle that can fulfilled everyone’s need.

- Honda could increase their design that follow the globalization’s lifestyle

- Threat

- Increasing fuel price

- Public transportation

- Intense competition

- Economic fall-off, cause an increase in price from every aspect

- Customer need and wants that keep changing rapidly

- Natural disaster

ST Strategies

- Honda can use their ability to always improve their product that can always fulfill the customer’s needs and wants.

- With Honda reputation, they can always avoid the damage that can be caused by natural disaster by opening another factory that can supply the spare part to the dealers.

WT Strategies

- Minimizing their luxury car that can keep the low-cost production that can follow the economic fall-off.

- Honda may have to design more creatively to differ their product to other brand, so that they can keep up with the competition.