Honda SWOT Analysis

Honda is one of the best as well as a leading company in the market, which is producing well with the help of all the latest and innovative technologies. Apart from automobile, Honda is one of the best and the largest producer of engine. Honda was the one, which compete with Nissan and achieved the highest productivity. Honda was the first Japanese automobile-based manufacturer, which produced the luxury-based brand. This company is thus working well and generating effective outcomes. Apart from this, numerous threats as well as weaknesses are there which plays an important role in weakening this company. Therefore, in order to analyze the weak areas and to highlight the strong areas of a company, SWOT analysis is done which results in better and productive outcome. (Dyck & Neubert, Pg 624, 2008)

Below mentioned is the SWOT analysis of Honda Company.


• High and powerful research and development R&D

• Innovation

• Best market share leadership

• Strong and powerful brand equity

• Different and unique products

• One major strength is the revolutionary engine technology with the help of which Honda is gaining success day by day

• Popularity is termed as one of the best strength which results in betterment for the company


• Cost structure of Honda is high as compare to other automobile manufacturers

• Apart from Nissan & Toyota, Honda requires privileged purchase deposit

• Honda focus more on international deposits as compare to domestic deposits

• Civic model is consider as one of the major weakness for Honda Company

• Honda products are termed as inoffensive in terms of style and design

• Prices for non-luxury vehicles are far high as compare to other manufacturers

• In truck line, Honda Company is not offering strong products and proposals


• Honda has the best opportunity to use its R&D in producing cars according to the needs and demands of their customer. This is only possible because of the increase in demand for less pollution cars.

• Emerging market is one of the best opportunity for this company

• Various models are there which caters the lower segment

• Fuel efficiency is now a days termed as one of the best opportunity which can results in the best productivity for the company

• Alliances are the best opportunities for Honda Company

• Honda can increase its production by focusing on sales and research

• They can gain more popularity by doing better research and development


• One of the major threat is the economic slowdown

• All the external changes for instance taxes, politics as well as government are the major threats for Honda Company

• Another threat is the lower cost competitors

• Price war is also consider as an important threat for this company

• Oil prices are contributing a lot towards the loss of Honda company

• Second movers are the major threat for Honda company

• Substitute products are the major threats for the Honda company


Aaron Frank, (2003), Honda Motorcycles, MotorBooks International, page 192

Bruno Dyck, Mitchell Neubert, (2008), Management: Current Practices and New Directions, Cengage Learning, page 624

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