You are required to conduct Strategy Analysis of three major players:

1. Toyota Motors
2. Honda Motors
3. Suzuki Motors
While answering following questions and conducting analysis for the above companies, you
should use multiple resources. The company’s Web site is a good starting point.

1. What is general environment Analysis for these firms? (Economic forces, internal external
etc)
2. Auto Industry Analysis as whole (corporate and business)
3. What drives this competitor (i.e., what are its objectives)?
4. What is its current strategy? (considering the crisis)
5. What are their strengths and weaknesses?

HONDA

1.1. The general environment analysis of Honda may be categorized on the bases of
following:

1.1.1. Natural environment: More the negative environment, the more the industry will
develop. Pollution level and Global Warming are two of the most concerned
problems of the community. As many Non-profitable organisations has requested the
industries to reduce toxic wastes and CO2 emission, the auto industry is continuously
researching and developing new startegies, technologies including fuel cell vehicles
and hybrid to deal with the problem. Honda, has evolved three solutions to encounter
the problem that are:
a) Promoting alternative fuel powered vehicles.
b) By internally combustion engines and improving fuel efficiency, there may be
further improvement to reduce emission
c) Hybrid vehicles evolution

Irrespective of the above, the industry endeavor towards cleaner, better and fuel-efficient engine
advancement along through its product lines improving the recyclables. Honda is also planning
to develop with solar and fuel cells and thus minimizing the environmental effect. As measured
by Life Cycle Assessment, Honda is also targeting to reduce the environmental burden in all eras
of business including but not limited to logistics, sales and spanning production. In the ASEAN
Market, the Natural Disaster Affect Demand has significantly affected the prices of soaring
gasolines and oil, ultimately resulting the prices of Automobile to go up and shrinking the
industry market.

1.1.2. Cultural environment: There was a failure of Honda Vehicle N6000 in United States
because the people of America prefers cars with stronger and bigger engine. Being a a
developed industrial country, Japan thereby attach special importance to Public
 Health Care and has started to meet customers demand that focuses on customer
satisfaction and development.

The main factor that leads to Honda success was segmenting the right market. That is
it depends on gender and thereafter the Honda product demand. Honda was searching
and researching about “consumer behavior”.

For example: Men that carry load eg.family or delivering goods, Honda produces the
scooter considering those factors and comes up with 100cc power to serve the
segment.

1.1.3. Economic environment: Rising fuel prices in Pakistan and economic slowdown has
triggered a decline in automobiles demand. There has been always a shift in the
market demand of Pakistan and thereby has caused the total demand for Honda to
decline in Pakistan and for factors such as high fuel prices, economic backdrop and
the current lockdown are also other factors.
1.1.4. Political/Legal Environment: There has been an up and down in the political
environment of Pakistan from protest to lockdowns to elections. These causes also
lead to decline the sales of Auto mobile vehicle.

1.2. Auto Industry Analysis as whole

1.2.1. Corporate Strategy : Honda has three businesses, Motorcycles, Automobiles, and
Power business. Honda has effecintly lead the market although it entered late with
meeting essential factors like optimum safety, superior fuel economy, driving
pleasure et The industrial sales and production were successfully proved worldwide
because the industry has devoted to one primer rule “build products close to
customer”. With 28 motorcycle plants in 21 countries, R&D operations in Italy,
China, Thailand, Germany, India and USA the company has operated successfully.
The firm is also now expanding in robot industry with ASIMO, and with Hondajet it
is reaching the high sky. This creates a firm statement for the company i.e. “creating a
promising and potential Honda in future”
1.2.2. Business Strategy: The business advantage of Honda has been sharpened by the
R&D, together with fierce competition. This all defines the Business strategy of
Honda. R&D is also one of the producest system of industry. Honda products care
about environmental, economical and social issues. The industry is firm in mobilizing
its products according to benefits of the people. The business strategy of Honda
evolves around the following:-
a) heartfelt endeavors into services
b) responding to changing values and increasingly complicated needs of customer
worldwide.
c) attentive sales, responsive service support, thorough maintenance and repairs.
d) unifying its multiple dealership channels into a single Honda sales channel, seeking to
strengthen the Honda brand
e) enhance customer satisfaction, and help ensure lifetime customer loyalty.
f) established independent local operation around the world
 g) pushed local autonomy and proactive efforts to localize the needs regional with
mutual understanding..
1.3. What drives Honda competitor
3.1. The threat of the entry of new competitors, threat of substitute products, customers
preferences and suppliers bargaining are few drivers of competition.
1.4. What is its current strategy
Honda is currently operationalizing in the worldwide market facilitating 28 countries with 134
production facilities and in 15 countries there are 31 R&D countries. 23 millions customers are
being served annually by 167000 employees. The current strategy of Honda is driven towards:
a) Philantrophic initiatives locally where Honda is operating
b) Enagaging and Hiring People from local community
c) integrating and forward lookin plan for each state by pushing sales and local management
d) transparency at operational level
e) maximizing customer satisfaction

1.5. What are their strengths and weaknesses?

Strengths Weaknesses
Dominance in motorcycle and engine industries Low investments in research and
leading to a high brand awareness development (R&D) leading to innovative
1. products

Competence in engine manufacturing - company’s Dependence on North America to

core product generate most of the revenue

Product portfolio is diversified

Strong Position in Asia Market for motorcyslce

Suzuki

1. What is general environment Analysis for these firms?

Political: Pakistan is facing lots of ups and downs since independence, therefo re many
governemnts are broken down by military. In these circumsatnces, no industry is willing to
invest in Pakistan

Legal: The legal policies and rules are hardly being implicated in Pakistan. Whoever support
government, encourage muggling are supported.

Economic: There has always been a back lock in economic history of Paksitan. In such a
country where economy is not stable, it is also very difficult for any industry to operate.

Other factors: No advancement in technology, no share in market, customer preferences,

catastrophes and alike may be other factors.

2. Auto Industry Analysis as whole

Corporate Strategy: The idea of corporate citizenship responsibility is what Suzuki is based on
with proper environment management, safety and occupational health. Suzuki is committed in
providing products of top quality as per the satisfaction and requirement of customers. They
conduct their operation in compliance with applicable environment and maintain inter
relationship between environment and energy. They also work towards minimizing the
discharge of wastes.

Businesss Strategy: Suzuki has startgeized to focus on customer market and the general
environment. As most of the people in Pakistan cannot afford luzurious cars, Suzuki offer
economical, business friendly and affordable cars for them with same satisfaction and comfort.
As, time is the main factor to complete and reach, Suzuki has produced vehicles such as
Mehran, Alto and bikes to meet the desirability of its customers.

2. What drives this competitor

The threat of the entry of new competitors, threat of substitute products, customers
preferences and suppliers bargaining are few drivers of competition.

4. What is its current strategy

Suzuki has continued to compete by providing just in time production, focusing on producing
products with high durability and value. The industry is also prioritizing its bargaining powers,
and plans to make deliveries of parts in small qualities several times a day.

5. What are their strengths and weaknesses?

Strengths Weakness
Highest Market Share Scarcity of raw material
Low price Vehicle Lack of co ordination with government
Resale of Local assembled cars Supplier bargaining is low
Large Distribution Channel
Well defined and bureaucratic structure.
Complete understanding between suppliers and
distributors

Toyota

1. What is general environment Analysis for these firms?

Natural environment: More the negative environment, the more the industry will develop.
Pollution level and Global Warming are two of the most concerned problems of the
community. As many Non-profitable organisations has requested the industries to reduce
toxic wastes and CO2 emission, the auto industry is continuously researching and developing
new startegies, technologies including fuel cell vehicles and hybrid to deal with the problem.

Legal: The legal policies and rules are hardly being implicated in Pakistan. Whoever support
government, encourage muggling are supported.
Economic: There has always been a back lock in economic history of Paksitan. In such a
country where economy is not stable, it is also very difficult for any industry to operate. The
dependency on foreign oil and gas will affect on the country’s economy growth. GrossDemotic
Product GDP and national security. Previously, the Europe Union had an agreement forquota
system, which provides protectionism for European countries, later on they dropped thequota
system and eased the tariffs for the external company which made it easier for
manyinternational companies including Toyota to trade in Europe and establish opening
factories,which has lead to positively affect on decreasing the unemployment rate and the
economicgrowth. (Choon Keet Sin, PESTLE Analysis on Toyota Prius)

Social: The challenge for Toyota is the difference between the Japanese customers and
Europeancustomers, where in Japan there is all about working, where in European culture life
is all about both work and social private life. The Japanese culture aspect is that they only take
what theyneed not what they want,

without wasting their energy and time on things they wouldn’t need,following “just in time”
production just like what Toyota supports

2. Auto Industry Analysis as whole

1.3.1. Corporate Strategy : Toyota has three businesses, Motorcycles, Automobiles, and
Power business. Toyota has effecintly lead the market although it entered late with
meeting essential factors like optimum safety, superior fuel economy, driving
pleasure
1.3.2. Business Strategy: The business advantage of Toyota has been sharpened by the
R&D, together with fierce competition. This all defines the Business strategy of
Industry. R&D is also one of the producest system of industry. firm products care
about environmental, economical and social issues. The industry is firm in mobilizing
its products according to benefits of the people.
2. What drives this competitor.

The global threats and the threat of the entry of new competitors, threat of substitute products,
customers preferences and suppliers bargaining are few drivers of competition.

4. What is its current strategy? (considering the crisis)

a) Philantrophic initiatives locally where Toyota is operating
b) Enagaging and Hiring People from local community
c) integrating and forward lookin plan for each state by pushing sales and local management
d) transparency at operational level
e) maximizing customer satisfaction
Nonethelss, Toyota has continued to compete by providing just in time production, focusing on
producing products with high durability and value. The industry is also prioritizing its bargaining
powers, and plans to make deliveries of parts in small qualities several times a day.

5. What are their strengths and weaknesses?

Strengths Weakness
Highest Market Share Scarcity of raw material
Low price Vehicle Lack of co ordination with government
Resale of Local assembled cars Supplier bargaining is low
Large Distribution Channel Global Competition
Well defined and bureaucratic structure. High Prices of Oil
Complete understanding between suppliers and
distributors