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Honda Motor Co. is the one or the highest manufacturer of the automobile and motorcycles all over the world. It was established in 1948 and has its headquarters in Tokya Japan. The company units are divided in segments like Motorcycles, Power Product, Financial Services and Other businesses. The company has its major ventures in Europe related to the core business of engines and motorcycle industries. This report is related to the external environment analysis of Honda Motor Co. Europe. There will be SWOT and PESTLE analysis for the company that will lead to the recommendation sections. This report is aimed to evaluate the business problems of Honda Motor Co. in Europe and solve the issues through strategic recommendations. We can understand that it is difficult to choose the right case study without the help of any experts, whether it is SWOT or Pestle analysis for that you need guidance from academic experts. For else e case study enquires visit Allessaywriter.com.
· The core product of the company is the engines and the competency of producing the machines are immense
· The company had diversified product portfolio ranging from engines, motorbikes to other automobile units.
· Honda has the dominance in motorcycle industries of Europe.
· The brand awareness of the Honda makes it one of the most trusted and popular brands in Europe.
· The brand has a strong position in the motorcycle markets of Europe.
· Most of the company revenues comes from the countries like USA and UK. This has increased their dependency on specific markets
· The brand invests low amount in the research and development
· The brand needs to work for their innovations.
· Brands in the automobile industries are getting political or governmental regulations.
· The European markets are growing. After the COVID 19 pandemic, the numbers of people buying motorcycles has increased all over the world. Honda Europe cam have higher opportunities in this sector.
· The report of the market states that the demand for the pick -up vans and SUVs are increasing in Europe. Honda can use their brand reputation for capturing these markets.
· The market competition for the company is increasing with new brands along with the known ones.
Brand reputation and customer loyalty are the positive aspects for Honda in Europe. The trusted brand of the motorcycles and automobile industry have the competence to serve the huge European market. These are the main strength of Honda Motors in Europe. The strength of the company is their product portfolio. The products of this company are well known and the reputation of the company adds to the whole thing. The weaknesses of the company are the less investments in the research and development works. Lack of innovation has restricted the scope of the company in different level. Also, the dependence on selected markets of western country has influenced the business in some ways.
The opportunities in the European markets are ample as the government is also taking care of the automobile business. The COVID 19 has been one of the reasons that the business of many sectors was down. At the same time, as people were not being able to use the public transports for national and international lockdown, the demands for private vehicles has increased. The huge market opportunities in Europe can be used for a positive outcome if the threats of competition could be controlled strategically by the Honda Motor Co
The Honda Motor Co. has their ventures in multiple countries of Europe. The company has to adhere to the political scenarios and governmental regulations to establish their business successfully. In most of the European countries, the political scenario is stable which is in favour of the business world. In some of the countries the trend for the battery driven cars has increased. This is one of the aspects that the company has to work on. In order to work on the environment regulations, the Honda Motors should develop more battery driven car models.
There is difference in the products needs in different markets which controls the economic aspects as well. In the case of the scooter markets, in countries of Europe, Scooters are considered to be the luxury items. While in Asian markets scooter is a common vehicle. Therefore, the target market for the European countries are different. People with moderate to high income sources buys scooters in the European markets. In some countries in Europe, the motorcycles are bought mostly by the young customers. The economic conditions of the consumers influence the buying decisions in various ways.
Socio- economic Factors:
The socio-economic factor influences the need of buying, customers behaviour and the employee management aspects. European countries are full of skilled labours, the education rate of the countries is high and people are openminded. The business opportunities are immense in the socio- economic aspects in Europe.
Technological advancements increase the business efficiency. Europe has good business opportunities as the technological advancements are impressive in these countries. AI, 3D printing, automation and IT technology makes the business process effective and efficient.
Laws related to environment, consumer safety, quality control and foreign business are to be considered in the case of Honda Motor Co. The customer Safety laws are strict in Europe. Government is also strict about the waste management and quality control. Therefore, the company has to take care of these laws while developing their business policies.
The environment safety regulations are becoming stricter in recent times. Other than that, people are getting aware of the influence of business on environment. Honda has faced controversies for their waste management and climate footprint.
Honda Motors Co, Europe has huge possibilities and opportunities to explore. The company could gain more revenue if it diversifies its products in the electric cars and motorcycles sectors. The new companies are using the electric motor strategies to capture market interest. Working on the environment welfare policies will also help the company to come out strong in the European market. Allessaywriter.com assures you to provide the best case study solutions because we understand the values of our clients. Else we provide you, free plagiarism checker, through which you check the quality of the essay as well.
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