Honda SWOT Analysis: A Fast-Paced Report!

honda swot analysis

A Honda SWOT analysis helps the company’s’s executives to analyze and assess all the internal and external factors of the community. Honda Motor Company, Ltd. is a Japanese public multinational conglomerate company that mainly focuses on manufacturing automobiles, motorcycles, and power equipment. It was founded on September 24, 1948. It sells its products worldwide. Its headquarters is in Minato, Tokyo, Japan.

A Honda SWOT Analysis is a proven management framework that enables Honda to benchmark its business & performance as compared to the competitors and industry.

Honda SWOT Analysis Competitors:

Toyota, Nissan, and Ford are typically Honda’s top competitors in a Honda SWOT analysis. Due to its dependable and fuel-efficient vehicles, Honda has a competitive advantage in the market, but these three companies continue to be major players in the automotive sector. Furthermore, Hyundai and Kia are upping their game in the market by providing more affordable and cutting-edge automobiles.

Honda SWOT Analysis – At A Glance

Company NameHonda
FoundedSeptember 24, 1948
FoundersSoichiro Honda, Takeo Fujisawa
CEOTakahiro Hachigo
HeadquarterMinato, Tokyo, Japan
Annual Revenue¥15.36 trillion (FY 2018)

Honda SWOT Analysis

Company managers can use SWOT analysis as a strategic planning framework to obtain a successful situational analysis of the company. A Honda SWOT analysis framework can assist them in realizing their internal strategic factors, such as strengths and weaknesses, as well as their external strategic factors, such as opportunities and threats.

The Honda company maintains its intimidating presence in the business sector only by reviewing the SWOT analysis regularly and improving itself. So, a Honda SWOT analysis will be of great use to this company.

Honda SWOT Analysis Strengths


The Honda Company has a plethora of strengths that will help it thrive in its main field. A Honda SWOT analysis will help to focus on these strengths. Based on Fern Fort University’s studies, some of these strengths are listed below:

Global reach: Honda is a worldwide Japanese multinational company. It operates in almost all countries across the globe. So, it has a great deal of a global footprint. This makes it more recognizable to the public and helps with its publicity. So, it can implement its global thinking with local execution. This means that it can pursue its ubiquitous goals and still win the hearts of its consumers.

Financial position: Honda has a strong financial base. It has been gaining market share slowly but surely for about 75 years. It has earned the public’s trust as a star company in the automobile field. Its financial position has put it at a point of pure advantage, which has increased its market value and brand name by leaps and bounds. So, this financially secure position is good for the company.

Huge research and development: The Honda company is highly focused on its research and development department. This is the sole reason why Honda has been at the top of the game for so long. In 2013, Honda invested about 5.7% of its total revenue, which is about 6.8 million dollars, in its research and development sector. They also take special care to train their workforce in this sector.

The largest manufacturer of automobiles: Honda has been the largest motorcycle manufacturer since 1959. It reached a production level of 400 million by the end of 2019. It has also become the largest manufacturer of internal combustion engines, measured by volume. It produces more than 14 million internal combustion engines every year. Honda became the second-largest Japanese automobile manufacturer in 2001. Honda became one of the 8 top automobile manufacturers in the world in 2015. Honda was also the first Japanese automobile manufacturer to release a dedicated luxury brand, Acra, in 1986.

Honda SWOT Analysis Weaknesses


Weaknesses are part of the internal factors of a company. These points leave the company prone to drawbacks, and as a result, the company suffers deeply. A Honda SWOT analysis will bring many of these to light.

Higher funds in the technology sector: Honda spends enough money to develop its technological sites. It is still quite behind in this matter since many of its competitors are ahead of it. This is quite an inconvenience, as it puts a damper on the team’s morale.

Brand connection strategy: The world is changing rapidly. So, it is high time Honda changed its strategies to cope with it. Its traditional branding and communication methods need a revolution. It needs to change not only the messages but also the media. Social branding plays an important role in this case. If Honda is adamant about not changing these customs, it will cost them heavily in the future.

High costs and prizes: As the Honda company makes large investments in the research and development sector and the latest technology, the product pricing goes through the roof. So naturally, the products are a bit on the pricey side. Even though it is a weakness, it is necessary. Because if it tries to lower the price, the brand equity will also fall. And this is something the Honda company simply cannot afford.

Requires mass-usable products in its product portfolio: The most common complaint is that Honda products are made for the upper-middle class, not for the mass population. So, it needs more products suitable for the lower middle class. So, it needs to expand its product portfolio to accommodate all types of people, regardless of their class. This is a fatal weakness for Honda.

Hero and Honda’s separation from India: Hero and Honda were a successful merger of the two successful brands in India. However, for multiple reasons, they had to separate, which left Honda in a vulnerable position in the Indian market. It is still trying to recover from it.

Honda SWOT Analysis Opportunities


The opportunities are outside factors of a company that they can exploit for profit and benefits for themselves. These external factors help the company identify more opportunities for its overall growth. The Honda SWOT analysis will help the executives contemplate their next big move.

New markets: As the government has agreed to lend a hand to economic development, there are new markets in the making. This will help Honda broaden its already wide horizon of business. This will also ensure that it finds new fields to grow and develops new products to launch.

Business Diversification: Even though Honda has plenty of products to sell, there are many new products that it could launch. People are now aware of its presence. So, this will be advantageous for the company. Business diversification can get people more interested and invested in the company. This will work as publicity and raise the profit.

Alternate fuel vehicles: The age of fossil fuels is coming to an end. As all of our automobiles are dependent on fossil fuels, this is a massive drawback. We are on the brink of suffering from energy exhaustion. So, thinking about the future, many clean energy-fueled automobile prototypes are being made. This is a huge field for Honda to work in. This is a good opportunity to take over the automobile market.

Increasing numbers of automobiles: The number of automobiles is getting higher and higher each day. This is possible only because the buying ability of each individual is rising. This promises more customers than its current stage. This is a good opportunity for Honda to snatch up as many customers as possible.

Threats for Honda in SWOT Analysis


Threats are the most important part of a SWOT analysis. These are also the external factors of the company. A Honda SWOT analysis will point out the threats to this community that have been holding it back.

Increasing competition: In recent times, many new companies have mushroomed in this new market. This increases the competition. Many local, regional, and national players are threatening to take over Honda’s position in the market. It has to stay ever-vigilant about its every move. This situation is making dents in Honda’s total revenue.

Impact of the Pandemic: This is the time of the pandemic. Honda is one of the leading companies in the consumer goods department. Even though this pandemic has failed to make any big impact on sales figures, that does not mean that the magnitude of the situation is any less. This pandemic has affected the manufacturing, distribution, and purchasing of Honda products. This has fueled major changes in Honda’s business strategies.

Government Regulation: The rules and regulations that the government imposes may be a major threat to Honda, especially if it does not abide by its profit-based agenda. Environmental pollution is one of the many reasons the government is keeping an eye on it. This is giving Honda a hard time in its business and production.

Honda SWOT Analysis Overview Template

honda swot analysis overview template

Conclusion and Recommendations for Honda

Here are some recommendations for Honda to improve their market game from the experts:

  • Improving the health and safety of the company’s employees.
  • Enhancement of the people by a long shot.
  • Encourage the workers to be creative
  • Lifting the team’s morale by achieving the team’s goals.
  • Training their workforces to the point of making them experts.

In conclusion, it can be said that a steady line of profit and global reach are the key strengths of Honda. Its greatest weakness would be its lack of mass-marketable products in its product portfolio. It may not look like much, but it is a huge load to carry.

FAQs for Honda SWOT Analysis

What Honda’s are made in the USA?

Honda manufactures several models in the USA, including the Accord, Civic, CR-V, and the Acura MDX. These vehicles are produced in Honda’s American manufacturing plants, supporting the local economy.

What is the business strategy of Honda?

Honda’s business strategy focuses on innovation, quality, and sustainability. They emphasize research and development, eco-friendly technologies, and maintaining a strong global presence in the automotive and motorcycle industries.

What are the advantages of owning a Honda vs. a Toyota?

*Fuel Efficiency: Honda’s fuel-efficient engines can save money over time.
*Many Honda vehicles offer sharper handling and a more exciting driving experience, appealing to passionate drivers.
*Innovative Technology: Honda automobiles generally have cutting-edge safety and connection technologies.
*Honda automobiles hold their value well, which helps boost resale prices when upgrading.
*Honda’s innovative designs attract buyers who like a fresh look.

A Honda SWOT analysis helps the company in many different ways. Only because it would allow the executive directors to theoretically take apart the company’s strategic approach to this day and scrutinize it.

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