Essays on SWOT Analysis of Honda Motor Company Ltd Case Study

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The paper "SWOT Analysis of Honda Motor Company Ltd " is a good example of a marketing case study.   Honda Motor Company Ltd was founded by one engineer called Honda Soichiro who started a technical research institute in 1946. The research institute was to develop small combustion engines. It came to be Honda Motor Company in 1948 and it started producing motorcycles in the following year. By 1959 it was one of the largest motorcycle selling companies. The company headquarters are in Tokyo, Japan. The company even opened the American branch to cater for its growing market in the United States.

In 1963 the company started producing automobiles that were very efficient for their customers use. Honda is the major exporter of automobiles and motorcycles mostly to the United States and other parts of the world (Honda, 2013). The organization operates in motorcycle and automobiles that are efficient for customers use. Therefore, this report will dwell on the company’ s production of motorcycles and their marketing so as to win the market share. The major competitors of the Honda Company in the motorcycle market include General motors that have taken the largest share of the market.

Another competitor is the Toyota Corporation which has taken the second-largest share of the market. This has made the company to be the third company in this line of production. Strengths: Large market share. Honda Company has the largest market share in the world, and it has different branches in various parts of the country, and globally. This gives the customers an advantage of accessing the products from any branch which is nearest to them. The large market share makes it more favourable to customers in world as compared to other companies with a small market share, as the customers are not required to travel far so as to access the services, but they can just go to the nearest one. Weaknesses: High operating costs.

The large market share of the airline requires many employees to manage and provide services in the different branches of the airline. Salary and wage bills are very high for this company as most of its revenue is channelled towards that, and it would otherwise have been used to conduct research in order to improve the customers’ services.

This puts some other airline companies at an advantage in case they can be able to urgently meet the demands and preferences of the customers. Companies that can meet all the customers’ preferences and demands as they arise, and urgently, tend to attract customers the more and make them loyal, unlike the ones which cannot. Stage 2 Market segmentation It is a process by which a large market is subdivided into small units so as to allow better marketing related to need and wants of the customers.

This will help the companies to capture and target different groups of customers (Bui, 2007). This helps the company to deal with will a small market share at a time because no company is big to cover the whole market. Therefore, it is important for the company to undertake market segmentation because it will reach out the most people in the market. The company should undertake market segmentation so as to get the best out of the market. The company can take any form of market segmentation either concentrated or differentiated.

In this case, Honda should undertake a concentrated market strategy because it will help sell many products which are similar. In a concentrated market, all customers are treated in the same way.


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