Detailed SWOT Analysis of Honda – Detail Explanation

Updated on: Sep 22, 2021
SWOT Analysis of Honda - Featured Image

  Hey there!

My name is Aditya Shastri and I have written this case study with the help of my students from the online digital marketing course at IIDE - India's #1 digital marketing institute.

Practical assignments, case studies & simulations from Harvard Business Review helped the students from this course present this analysis.

If you find this case study helpful, consider leaving a comment below.

This would really motivate us.

Honda is a well-established multinational conglomerate company that has successfully catered to the needs of millions of people all around the world in the past years. It has a market share of 24.55% in the two-wheelers market.

Even the Honda company had its good times and bad times which helps them get valuable insights.

Thus this makes us keen to know the SWOT analysis of Honda. In this case study, you will know the Strengths, Weaknesses, Opportunities, and Threats of Honda.

Before we start with its SWOT analysis let us know about Honda as a company.


About Honda Company 

Honda Logo | SWOT Analysis of Honda | IIDE

Honda was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It has its headquarters located in Minato, Tokyo, Japan. It manufactures automobiles, motorcycles, power equipment, aircraft, and jet engines. 

It was Japan’s 1st automobile manufacturing company that launched a dedicated luxury brand in 1986. It has a total capital of 86 billion yen as of 2021.

This company is expanding its business in various countries all over the world and its target customers are mainly the middle-income groups and youngsters whose first preference would be buying two-wheelers first. Thus, this strategy has lead to an enormous increase in sales. 

Let us now start with the SWOT analysis of Honda.


SWOT Analysis of Honda

SWOT stands for the analysis of Strengths, Weaknesses, Opportunities, and Threats of a company. Through SWOT analysis, a company can identify its strengths and weaknesses and how it can work on both these factors by grabbing the existing opportunities and with an effective response to the threats in the external environment.

Let us first see the Strengths of Honda company.


1. Strengths of Honda

Honda Janmashtami Offer | SWOT Analysis of Honda | IIDE

  • New innovative techniques and productsWith the usage of proper and new innovative techniques and products, it has been able to increase the sales of the company to a large extent.
  • Export businessIn developed countries, Honda has set up its giant manufacturing hubs and they also indulge in the export business of bikes from premium edition to such countries, where they can make more money from the sales.
  • Social Media MarketingHonda has used its social media marketing strategies and has gained a lot of audience by advertising some relatable campaigns.
  • A broad range of productsHonda manufactures a wide variety of products like motorcycles, power equipment, private jet, engines, and automobiles that have made the lives of people so much easier.
  • The pricing strategyHonda’s market has around 28 million customers buying its products every year all over the world as it sells fine quality products even at an affordable range of pricing.
  • Brand StorytellingThrough its brand storytelling, Honda indulges in the art of making things and creating new experiences which are its rare ability for creating solutions.
  • Largest motorcycle manufacturerHonda is leading in the motorcycle manufacturing chart in the world as of 2020.

Let us now see the weaknesses of Honda.


2. Weaknesses of Honda 

  • Decrease in sales revenueDue to the pandemic, a steep fall is witnessed in the sale and demand for the products and services of Honda. The company’s sales dropped down by 25.2% according to the September 2020 census due to the decrease in sales revenge in all its business operations.
  • Branding StrategyOne of the biggest weaknesses of Honda is that it still follows the strategy of traditional branding and methods of communication which needs a change along with the fast-changing world, otherwise, this can prove to be a major problem in the near future.
  • Requirement of Higher InvestmentHonda needs to make a higher investment in the technological sector. Even though it spends quite a considerable amount on the development of its technological sites, yet, it is still far behind its competitors in this case, which can later lead to unavoidable circumstances.

Let us now see the Opportunities for Honda.


3. Opportunities for Honda

  • New MarketsDue to the pandemic, every company whether big or small has suffered adversely, and hence, the governments have taken an initiative to help in the economic development of the countries. Thus, bringing up new markets which can help Honda to come back on track and help it grow and widen its scope of business.
  • Diversification in BusinessSince Honda is a well-known and established company, it is advisable for the company to launch its new products which will fetch them more profits. It can also prove to be very advantageous for them, as this diversification in business will attract more people and will help them gain publicity.
  • The Production of Electrical VehiclesThe harsh truth is that that fossil fuels are exhausted to such an extent that sooner or little later electrical vehicles or “zero-emission vehicles” can take over the market. And since Honda has the full potential to produce such vehicles with its available resources, the company should definitely take this initiative.

Lastly, let us see the Threats for Honda.


4. Threats for Honda

  • Increase in competitionIn recent years, there has been an enormous increase in the number of new companies in this market sector which has resulted in increased competition. Thus, there is cut-throat competition and the competitors of Honda are planning strategies to take over the market.
  • Impact of Covid-19Due to the pandemic, the sale of Honda’s products has been affected largely as it posed a great threat to the manufacturing and distribution sectors of the company. Thus, leading to drastic changes in the business strategies of the company.
  • Government RegulationsHonda is facing challenges posed by the government’s new rules and regulations mainly in its business and production sector. Pollution being one of the major reasons why the government is giving the company a hard time and also if the government declares that it is not in favour of the profit-based tactics, the company can suffer in the years to come.

Honda Competitors | SWOT Analysis of Honda | IIDE





To conclude, Honda is a brand that is reliable and unique in its own ways, which clearly has the ability to fulfil the demands and the requirements of the customers. 

Some of its strengths are that the company uses new innovative techniques and products in the market. They also have a wide range of products to serve in the market and they export premium products to places with more demand helping them gain more profits.

The brand also has some weaknesses which are the decrease in sales revenue due to covid, it uses traditional marketing strategies which can become a disadvantage for the company.

With the passing of time, new opportunities are emerging such as the initiative by the government to help the businesses to get the economy back up and the new market of electric vehicles. Honda can take advantage of these opportunities and capture more of the market.

Honda also has some threats in the market like the increase in competition and the new government regulations imposed.

Hope you have learned something new from this blog. If you are still interested in knowing more about the company then do check our other blog on Honda’s marketing strategy.

Wasn’t it interesting to know the SWOT analysis of Honda? Learn how to grow your business using digital marketing, check out our website for more information.

Share post via

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]


Submit a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts