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Honda Motor Company is one of the world's premier manufacturers. Over the past three decades it has taken up a dominant niche market within several industries and competes with other highly touted automobile companies for massive market entrenchment within the United States and other developed nations. The following SWOT analysis will analyze Honda to examine particular planning and business enterprises.

Honda has much strength, and in recent years it has progressed to become one of the front runners in the auto industry. Its primary strength since its inception has been making high efficiency cars at a low cost. This statement encompasses the core ideals and strengths of Honda. First, it is highly efficient because Honda designed vehicles are always well designed for maximum output with minimum input. Which means that it is lighter than most cars that it competes with, as well as providing the maximum space within any specific automobile class? The most important advantage in the current market however, is that Honda has devoted far more research into fuel efficient cars than any other competitor, with soaring gas prices and greater environmental concerns about fossil fuel usage, Honda has emerged as the leader in fuel efficiency and energy efficiency. As a result, Honda automobiles have surpassed GM and Ford for the first time last year in overall sales. The application of Honda's automobile powerless to other motorized devices such as ATVs, Water Craft, and electrical generators has made its diversification another key strength. This means that overall Honda has divested its revenue across many different platforms, investing significant research in a variety of growing demand markets such as water sports. As a result, it has gained a significant advantage over other major motor producers and its overall diversification allows it to make profits even when its primary revenue share (automobiles) lag in sales. The final strength that Honda has is it price competes in every market that it operates in. Honda specializes in creating highly efficient, but low cost products and as a result, is competitively priced in every market it operates in. This is extremely rare with large name brand manufacturers because they do not have to price compete when they dominate the brand. However, Honda has prided itself on being cost efficient and passing on these savings to their customers. The combination of these three elements makes Honda one of best if not the best manufacturers on the planet.

While Honda has much strength to their name, they also suffer from some major weaknesses. The primary weakness of Honda is oftentimes one of their major strengths as well. By sticking to their guns as the technology innovator within their industry, Honda divests much of its resources in exploring new methods to enhance their products. However, they often conduct research and innovation in fields that have no practical application until long into the future. Take for example their fuel efficiency research; Honda was the industry leader in fuel efficiency from 1985 to present. However, only until recently did gas prices raise high enough to warrant the fuel economy as a significant advantage. Had Honda divested more of their resources to other high end upgrades such as competing within the SUV market, they might have made much more profits. Thus, finding the balance between future research and current profits is one of the major weaknesses with Honda. Another one of its weaknesses is that Honda relies on its "entry first, organizes later" strategy for new market penetration. Its corporate strategy appears to be to enter established markets with their innovative products and develop an infrastructure and organization after they observe how the market reacts. Although this strategy has worked well in some cases such as Honda's entry… READ MORE

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