Honda Motors Company Ltd Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Honda Motors Company Ltd Case Solution

Psycho-graphic Segmentation

Nowadays, people are becoming very brand conscious and they are getting more inclined towards wanting a standard lifestyle. They want to drive a car with passion and they also want good quality of services. When a person joins a company; the employment organizations offer a car to inspire the person to work with dedication, so after such individuals get cars from their employers; the driving schools will then become essential for such individuals to seek driving lessons from.

Behavioural Segmentation

Innovation and advanced technology can attract the customers towards the product. Honda provides driving lessons on its current released cars to attract the customers by providing the driving school facilities in much updated cars.

Competitor Analysis

Now the market competition is very high and the customer demand is increasing day by day. Honda would be able to meet the customers’ demands by introducing new technology and latest infrastructure and resources added in their upcoming products.(Trefis, 2020)

To see the competition analysis of Honda Motor and other companies; see the Appendix B.

Customer Appeal Analysis

Following are the factors that tend to add value in the customer’s mind regarding a product:

Less price with respect to the market price.
Eco-driving techniques.
Services can be adaptable.
Insurance benefits.

Honda Motor Company Performance Vs. It’s Competitors Q1 2020

According to the CSI Market, the revenues of Honda Motor Co Ltd have decreased by -4.92% in the first quarter of 2020 when compared to its competitors whereas, its competitors’ revenues are recorded as 90.69% in the same quarter.In addition to which, the net income of Honda has also declined by -23.71% as compared to its competitors. Also, the market segmentation share of HMC has fallen by -4.92%. (Covey, 2020)

List of the revenue and net margin, market segmentation share of HMC and its competitors are mentioned in Appendix C.

SWOT Analysis

Strengths

Brand image.
Updated new models.
Advanced technology/infrastructure.
Eco-friendly cars.
Customer loyalty.
Alliance with eco-diesel fuel companies.

Weaknesses

Spare parts are costly.
High cost of production.

Opportunities

Budget friendly and economy cars.
Hybrid and fuel efficient vehicles.
Promote their products at zero cost.

Threats

Depreciation of rupees against dollar.
Increase in petroleum and steel prices.
Political instability.

Conclusion

Due to COVID’19, in the beginning of the year; Honda motor stock price was falling by around 8%. The COVID’19 recession has impacted the company’s revenue, cash flow and its ability to pay the dividends. The curfew orders have highly reduced the non-compulsory expenditures, fading the consumer demands, which will affect the automobile industry. At the end, it was reported that Honda Motors is not likely to get highly affected by the ongoing pandemic issue.To sum up, it is expected that Honda Motor’s revenues could decrease by 30% in FY’21 on the account of low demand and in the 2^nd quarter of FY’21, eliminating the share repurchases and suspending the dividends.(Ferguson, 2020).........................

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Honda Motors Company Ltd Harvard Case Solution & Analysis