Honda Malaysia

In this Honda analysis, we have explained about Honda internal (strengths and weaknesses) and external environment (opportunities and threats) as above. Honda is a successful automobile company in this industry. Honda can improve their strengths to compete with competitor and new entrants, Honda should implements differentiation strategy in their products and services. Differentiation strategy defines as the integrated set of actions taken to produce goods and services that customers perceive as being different in ways that are important for them (Das and Joshi, 2006). Honda can specialise their product brands, design, technology, features, dealers, and network or customers services. Furthermore, it also can earn above average returns in a specific business as customers are less sensitive to price when they are loyal to your company brand. Honda can improve their brands positioning (strengths) and increase demand for hybrid car and electric vehicles products (opportunities).

Honda Motor with strong brand image along with unique product differentiation strategy has been able to create demand for its products and the sales can increase through entire value chain (Hero Honda Motors Ltd 2008). With this strong image, Honda Company can use better technology to create different products compared to their competitors. For example, Honda manufactures hybrid cars which are fuel efficiency, do not emit much carbon dioxide, uses environmental friendly material and the price of hybrid cars are affordable. This is Honda Company’s strength or competitive advantage towards their competitors. Furthermore, Honda Company has the resources and capabilities to create better design or unique product to satisfy customers with acceptable price (win-win situation).

Also, with its strengths, Honda Company differs from other automobile manufacturers as Honda produces hybrid car with a reasonable price. For example, Hero Honda Motors has seized the market of motorcycles in India by

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