Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 57 views

    Space Matrix

    Uploaded by

    LifeStacks
    Honda has been successful in gaining market share and customer loyalty through vertical integration. Unlike competitors, Honda manufactures its own engines for cars and motorcycles in plants around the world. Financially, Honda has a debt to asset ratio less than competitors, strong cash flows, and capital availability. The automotive industry offers high growth and profit potential due to technological advances in software and electrification. However, environmental factors like rapid technological changes, inflation, demand variability and competitive pressure pose challenges.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Space Matrix

    Uploaded by

    LifeStacks
    57 views17 pages
    Honda has been successful in gaining market share and customer loyalty through vertical integration. Unlike competitors, Honda manufactures its own engines for cars and motorcycles in plants around the world. Financially, Honda has a debt to asset ratio less than competitors, strong cash flows, and capital availability. The automotive industry offers high growth and profit potential due to technological advances in software and electrification. However, environmental factors like rapid technological changes, inflation, demand variability and competitive pressure pose challenges.

    Original Title

    SPACE MATRIX

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Honda has been successful in gaining market share and customer loyalty through vertical integration. Unlike competitors, Honda manufactures its own engines for cars and motorcycles in plants around the world. Financially, Honda has a debt to asset ratio less than competitors, strong cash flows, and capital availability. The automotive industry offers high growth and profit potential due to technological advances in software and electrification. However, environmental factors like rapid technological changes, inflation, demand variability and competitive pressure pose challenges.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views17 pages

    Space Matrix

    Uploaded by

    LifeStacks
    Honda has been successful in gaining market share and customer loyalty through vertical integration. Unlike competitors, Honda manufactures its own engines for cars and motorcycles in plants around the world. Financially, Honda has a debt to asset ratio less than competitors, strong cash flows, and capital availability. The automotive industry offers high growth and profit potential due to technological advances in software and electrification. However, environmental factors like rapid technological changes, inflation, demand variability and competitive pressure pose challenges.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 17

    SPACE MATRIX EVALUATION: HONDA

    Honda market share

    https://www.goodcarbadcar.net/honda-cr-z-sales-figures/

    Honda product life cycle


    Customer loyalty
    Vertical integration

    Honda has used vertical integration successfully to market its brand as a low-cost car manufacturer
    and to gain customer loyalty, (Henry, 2011).For example, unlike its big American, European, and
    Asian competitors such as Ford and Kia, Honda are directly responsible for manufacturing the
    engines fitted onto their cars and motorcycles. In fact, according to Rothfeder (2014), the company is
    the world’s leading producer of combustionengines, through plants established in various locations
    across around 29 countries

    https://www.coursehero.com/file/14948475/HONDA-FINAL/

    financial strength

    ROI

    https://www.macrotrends.net/stocks/charts/HMC/honda/roi
    for leverage ratio , cash flows, capital required.
    industry strength

    Profit potential

    Financial stability

    debt to total assets ratio less than 1 among all major brands of industry

    see chegg ratio pic above


    TECHNOLOGY KNOW HOW

    https://www.startus-insights.com/innovators-guide/automotive-industry-trends-10-innovations-
    that-will-impact-automotive-companies-in-2020-beyond/
    capital intensity

    https://www.americanautomakers.org/capital-investment
    Environmental stability

    Technology changes

    https://www.toptal.com/insights/innovation/how-software-will-dominate-the-automotive-industry
    Inflation rate in us

    https://www.macrotrends.net/countries/USA/united-states/inflation-rate-cpi
    demand variability
    https://www.goodcarbadcar.net/usa-auto-industry-total-sales-figures/

    Company’s competitive advantage Market Share

    1. Product Quality -2
    -6 to -1
    2. Product life cycle -3
    3. Product Replacement cycle
    4. Customer Loyalty -1
    5. Competitor’s Capacity Utilization
    -1.8 AVERAGE 6. Technological knowhow -1
    7. Vertical integration-2

    Company’s Financial Strength 1. Return on investment 4


    2. Leverage liquidity 5
    3. Capital Required/Available 5
    4. Cash Flow 2
    5. Ease of exit from market 2
    3.5 AVERAGE 6. Risk involved in business 3

    Industry Strength 1. Growth potential 3


    2. Profit potential 3
    3. Financial Stability 5
    4. Technological know how 5
    5. Resource utilization
    6. Capital intensity 5
    7. Ease of entry into market 2
    8. Productivity
    3.8 AVERAGE 9. Capacity Utilization

    Environmental Stability 1. Technological charges -5


    2. Rate if inflation -4
    -6 to -1 3. Demand variability -3
    4. Prices of competing products
    5. Barriers to entry into market -4
    6. Competitive pressure -5
    -4.2 AVERAGE 7. Price elasticity of demand

    You might also like