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Swot of Honda

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Swot of Honda
A swot analysis of Honda will show us that its; Also it diversifies revenues by operating in a number of markets. They include Automobile market(80.2% of revenue in 07), Motorcycle market(12.4%), Power product and other(3.8%) and financial services(3.7%). Performing well in all these markets not only provides protection from loss in one market but also provides benifits from other market and all this led to a revenue stream of around $94 billion. Leading market position and brand, Honda is one of the leading manufacturers of Light vehicles in the world, it is the third largest in Japan and is the leading manufacturer of motorcycles in the world. In addition in 2007’s Fortune magazine’s list of America’s most admired companies Honda was ranked as number 6 in motor vehicles and parts industry. It was also ranked 37 by Fortune Global 500 list for 2007. Leading market position helps provide economies of scale and increases bargining power. Honda also has one of the leading automobile brands in the world reacing 19th in the annual ranking of the top 100brands by Bussiness Week in 2006. Their brand value stoodcat $17,049 million. This was achieved by consistent investment in advertising and technolically superior products, the Honda brand stands for quality and reliability. Engineering capability, Honda is synonymous with engineering excellence. The company is well known for its engineering excellence from its automobiles to robots. During 2007 they invested around $4.7 billion in research and development. The developed the world’s first humanoid robot capable of bipedal motion and the world’s first automobile engine to meet the US clean air act requirements.The company is also well known for its v-tech system and along with Toyota was the first to launch the hybrid car. The engineering capability of Honda is very strong even announcing a new brain-machine interface creating technology for manipulation robots using human brain activity.
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