Comprehensive SWOT Analysis of Honda- the Two-Wheeler Market Leader

Updated on: Nov 24, 2021

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Last time we saw the SWOT Analysis of TVS, today let’s look at the SWOT analysis of Honda Two Wheelers.

Honda is one of the leading automobile brands with an international footprint. It is based in Japan and sells its merchandise worldwide. The employer has launched numerous notable fashions of vehicles and motorcycles, popular in each western and Asian nation. 

The company is known for its brand image which is created by strong marketing strategies. With the advancing time marketing has taken a digital shift known as digital marketing, it is one of the most beneficial factors to a business.

If you want to know more about digital marketing do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

In this blog, we will understand the swot analysis of Honda Two-wheelers, before that let’s know more about the company.

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About Honda

Honda is one of the major players in the automobile industry, the company is originated in Japan and now has expanded in the whole world. In recent years, the enterprise is taking part in a non-stop increase in revenue pushed through a better income.  The enterprise of Honda is divided into 4 segments. The automobile section is the most important of them. The organization is also investing aggressively in studies and development to develop its market proportion inside the worldwide automobile marketplace. 

US Honda Collection- SWOT Analysis of Honda | IIDE

North the USA and especially the U.S. is the most important geographical enterprise phase of Honda. The organization also has a sturdy presence in its domestic market. The car enterprise is presently the first-rate transformation and the evolution of technologies like AI and autonomous use has delivered several new opportunities for automobile corporations. Honda additionally has a large wide variety of manufacturing and assembly facilities internationally. 

However, in terms of vehicle income, its role in Asia and China is weaker compared to the main opponents. There are other demanding situations too before Honda because the business shape has usually stopped it from moving nimbly. A huge range of recalls has also haunted Honda over the last numerous years. The enterprise has to take an extra flexible technique and focus exclusively on research and innovation to emerge from those challenges.


Quick Stats about Honda
Founder Soichiro Honda & Takeo Fujisawa
Year Founded 1948
Origin Japan
No. of Employees 215,638
Company Type Public
Market Cap ¥ 5.715 Trillion (2021)
Annual Revenue ¥ 15.36 Trillion (2020)
Net Income/ Profit ¥ 1.05 Trillion (2020)


Products offered by Honda:

  • Bike
  • Scooter
  • Car
  • Commercial Vehicle

Competitors of Honda:

  • Ford Motors
  • Mitsubishi Motors
  • Nissan
  • Suzuki
  • TVS


SWOT Analysis of Honda Two Wheelers

Infographic- SWOT Analysis of Honda | IIDE

It is a brief overview of the company’s strengths, weaknesses, opportunities & threats it offers. The strengths and weaknesses of a company are shown through its internal efforts and threats and opportunities are affected by external factors.

1. Strengths of Honda 

Honda enterprise has a plethora of strengths to assist it to thrive within the primary field. A Honda SWOT analysis will help to a consciousness of those strengths. based totally on Fern fortress college’s research, a number of these strengths are enlisted underneath:

  • International Attain: Honda is an international jap multinational employer. It operates in nearly all nations throughout the globe. So, it has an extraordinary deal of global footprint. This makes it greater recognizable to the general public and enables its exposure. So, it can enforce its international questioning with nearby execution. Because of this it can pursue its ubiquitous dreams and can still win the hearts of its clients.

Honda Showroom- SWOT Analysis of Honda | IIDE

  • Economic Position: Honda has a sturdy financial base. it’s been gaining market slowly however surely for approximately 75 years. It has earned public acceptance as true as a celebrity enterprise within the vehicle field. Its financial function has it on a pure gain that accelerated its market value and emblem call by leaps and limits. So, this financially cozy function does properly for the employer.
  • Large Studies and Development: Honda’s business enterprise is rather targeted on its research and improvement department. This is the only reason why Honda has been on the top of the game for goodbye. In 2013, Honda invested approximately five.7% of its total revenue, which is about 6. eight million greenbacks, on its research and development quarter. in addition, they take unique care to teach their workforces regarding this area.


2. Weaknesses of Honda 

Weaknesses are part of the internal factors of an employer. These points leave the company at risk of drawbacks and as a result, the business enterprise suffers deeply. A Honda SWOT evaluation will convey lots of those to mild.

  • Financial Planning: All though Honda spends enough cash to expand its technological websites. it’s miles nonetheless quite at the back of in this be counted a because of its competitors are ahead of it on this count. This puts it as quite an inconvenience as they positioned a damper on the crew’s morale

  • Excessive Costs: As the Honda agency makes large investments in the research and development zone and the modern generation, the product pricing is going over the roof. So clearly, the goods are a bit on the steeply-priced aspect. Even though it is a weak spot, it’s miles essential. due to the fact if it attempts to lower the rate the logo equity will even fall. And this is something the Honda organization can invest in a nation to find the money for.

  • Hero and Honda Separation: Hero and Honda have been a hit merger of the two successful brands in India. but, for multiple motives, they had to separate which left Honda in a prone position inside the Indian marketplace. It’s miles nonetheless trying to recover from it.

3. Opportunities for Honda

  • Improvement in US Economy – The US markets have improved over the period and a demand for new vehicles and models has been identified. It is a great opportunity for automobile manufacturers to fulfill the demand and create business opportunities.
  • Government Regulations – Governments are working towards reducing carbon footprints and coming with more strict regulations which will impact the automobile industry. Honda can convert this into an opportunity to innovate and come up with electric vehicles.
  • Diversification – Honda is a traditional company, it can expand its business activities in new markets


4. Threats for Honda 

Threats are an essential part of a swot analysis. Those also are the external elements of the organization. A Honda SWOT evaluation will factor out the threats to this community that has been preserving its lower back.

  • Increasing Opposition: In recent times, many new organizations are mushrooming in this new marketplace. This will increase the opposition. Many neighborhoods, nearby and country-wide gamers are threatening to take over Honda’s function within the market. It has to live ever vigilant about its every move. This example is making dents in Honda’s general sales.
  • Effect of Pandemic: This is the time of the pandemic. Honda is one of the main companies inside the client goods department. Even though this pandemic hasn’t made any large effect on the sales discern, that does not mean that the significance of the situation is any less. This pandemic has affected the production, distribution, and purchasing of Honda merchandise. This has fueled fundamental changes in Honda’s business strategies.
  • Government Law: The policies and rules that the government imposes may be a chief hazard for Honda, particularly if it does not abide by its profit-primarily based schedule. Environmental pollution is one of the many reasons the authorities are keeping a watch on it. That is giving Honda a difficult time in its business and manufacturing.
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Honda is a market leader in the automobile industry, it has created a trust for itself among customers and is known for its services. The company has created a strong brand image and is doing well in terms of expansion also. It can work on its alliance better to create a long-term plan. 

The company can further improve its marketing level, it can opt for digital marketing ways to capture its target audience.

Digital marketing has become an essential part of any company. If you also want to learn digital marketing to upskill your knowledge, check out top-class courses provided by IIDE.

Liked the blog? Do check out IIDE Knowledge Portal for more insightful case studies. Thank you for taking the time to read the blog, do share your thoughts in the comments.


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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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