FEASIBILITY REPORT HONDA SP 125

NAME : CHAUDHARY FATEH ALI

ROLL NO. : 13
SUBMITTED TO : CP THAKOR SIR
SUBMITTED BY : FATEH ALI
M.COM SEM : 02
S.K.SCHOOL OF BUSINESS MANAGEMENT
HNGU ; PATAN
Points to be Covered
 Background History of UAE

 UAE Profile

 India-UAE Relations

 Bilateral Trade

 Membership of Sri Lanka in Different Organizations

 Key Cities

 Introduction of Industry

 SWOT Analysis of INDUSTRY

 PORTER’S FIVE FORCE Analysis

 Pastel analysis

 SEGEMENTATION ,TARGETING ,POSITIONING [STP]

Back ground History of UAE

Destination United Arab Emirates, a country on the Arabian Peninsula bordering the Persian
Gulf and the Gulf of Oman.

Border countries are Oman and Saudi Arabia, the UAE shares maritime borders

with Iran and Qatar.

The country covers an area of 83,600 km², this about the size of Austria, or slightly smaller than
the US State of Maine.

The UAE has an estimated population between 5.9 and 9.2 million people

Capital city is Abu Dhabi, the country's largest city is Dubai,

a metropolis from a weird shisha-dream, a playground for international architects, a mirage in the
desert with mammoth shopping centers and extravagant entertainment attractions, the world's
highest skyscraper (Burj Khalifa) and palm-shaped artificial islands.

Spoken languages are Arabic (official), Persian, English, Hindi, and Urdu.

Rulers of the United Arab Emirates

 H.H. Sheikh Khalifa Bin Zayed Al Nahyan
Acting President of the United Arab Emirates, the Emir of Abu Dhabi, and the Supreme
Commander of the Union Defence Force.
 H.H. Sheikh Mohammed bin Rashid Al Maktoum
Acting Vice president and prime minister of the United Arab Emirates and ruler of Dubai.
 H.H. Sheikh Zayed bin Sultan Al Nahyan
(Born: 6 May 1918 - Died: 2 November 2004) Founder of the UAE, he was the Ruler of Abu
Dhabi and President of the United Arab Emirates until 2004

Sheikh Zayed bin Sultan Al Nahyan is the first president of UAE.

The first prime minister, Maktoum bin Rashid Al Maktoum, took office on 9 December 1971.

UAE’s Profile
Capital:- Abu Dhabi
Largest City:- Dubai
Official Language:- Arabic
Area:- 83,600 km²
Population:- 94 lakhs (2017) World Bank
Currency:- United Arab Emirates dirham
GDP:- 40,698.85 USD (2017) World Bank
(Source: CIA - Wikipedia)

India – UAE Relations

India and United Arab Emirates (UAE) enjoy strong bonds of friendship based on age-old cultural,
religious and economic ties between the two nations. ... Both countries soon established
diplomatic relations in 1972 with UAE Embassy in India opening in 1972 and Indian Embassy
in UAE opening in 1973.
Bilateral Trade
India-UAE bilateral trade for the last five years
Value in US$ Million
  2017-18   2018-19   April-Oct
S. Year   2014-15   2015-16   2016-17 2019 (P)
No.
1 EXPORT 33,028.08  30,290.01 31,175.50 28,145.64 30,126.34 17,348.02
2 %Growth   -8.29 2.92 -9.72 7.04  
3 IMPORT 26,139.91 19,445.68 21,509.83 21,739.96 29,783.04 16,678.45
4 %Growth   -25.61 10.61 1.07 37.00  
5 TOTAL TRADE 59,167.99 49,735.69 52,685.33 49,885.60 59,909.38 34,026.47
6 %Growth   -15.94 5.93 -5.31 20.09  
7 TRADE 6,888.17 10,844.33 9,665.67 6,405.69 343.30 669.57
BALANCE
(Source: DGCI&S, Kolkata)       

Membership of UAE in Different Organization

 African Development Bank Group (AfDB)
 African Union (AU)
 African Union/United Nations Hybrid Operation in Darfur (UNAMID)
 African, Caribbean, and Pacific Group of States (ACP Group)
 Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean
(OPANAL)
 Alliance of Small Island States (AOSIS)
 Andean Community (CAN)
 Arab Bank for Economic Development in Africa (ABEDA)
 Arab Fund for Economic and Social Development (AFESD)
 Arab Maghreb Union (AMU)
 Arab Monetary Fund (AMF)
 Arctic Council
 ASEAN Regional Forum (ARF)
 Asia-Pacific Economic Cooperation (APEC)
 Asian Development Bank (ADB)

(Source:- MIDDLE EAST :: UNITED ARAB EMIRATES — THE WORLD FACTBOOK - CENTRAL
INTELLIGENCE AGENCY
Key Cities
 Dubai
 Abu Dhabi & Sharjah metropolitan areas have a similar population, 1.2 –
1.3 million in 2015
 AI Ain, population about 500000 in 2015
 Ajman, population about 350000 in 2015

INTRODUCTION OF HONDA SP 125

Engine displacement 124 cc
Fuel Type Petrol
Power 10.8 PS @ 7500 rpm
No of Gears 5 Speed
ABC No
Wheels Type Alloy
Tyre Type Tubeless
Transmission Manual

SWOT ANALYSIS

STRENGTH
 Size and scale of parent company.

 Effective Advertising capability

 Committed and dedicated staff

 High emphasis on R and D

 Experience in the market.

WEAKNESSES
 Small showrooms.

 Not much emphasis on aggressive selling.

 Weak product diversity.

OPPORTUNITIES
 Growing premium segment

 Global expansion into the Caribbean and central America

 1st mover advantage

THREATS
 Cut throat competition

 Increasing number of players in the market

 Rising raw material costs

 Increasing rates of interest on finance

PORTER’S FIVE FORCES

POTENTIAL NEW COMPETITORS:
 Energy Partners
 H – Power
 Mitsubishi Electric
 Plug Power
 Proton motor fuel cell
 Siemens
 Honda
 Renault and Peugeot
CUSTEMER POWER
 Honda
 GM
 Toyota
 Ford

SUBSTITUTES
 Natural gas cars
 Hybrid cars
 Electric battery cars

SUPPLIER POWER
 Supplier of platinum
 Membrane
 J. Matthey

COMPETITION IN THE INDUSTRY

 Bollard
 Nuvera and United
 Technologies Fuel cell

PESTEL ANALYSIS
Pestel analysis of Honda
Honda PESTEL Analysis & Environment Analysis. ... PESTEL is an amalgam of initials of
various factors that not only affect Honda but the entire industry as a whole- these factors are namely
Political, Economic, Social, Technological, Environmental and Legal.

POLITICAL FACTORS
Due to UK government had proposal that limit number of cars being sold in the country. Honda sales
would affect by this issue and couldn’t manufacture more number of cars compare to previously.

UK consumers pay higher pre-tax prices for cars than anyone else in the Europe.

UK government was keen to attract foreign firms to invest in UK. Honda investing in UK as initial
stake in rover.

ECONOMIC FACTORS
Exchange rate from £ to Yen. Due to UK and Japan exchange rate are not stable always and it would
affect Honda’s cars price not stable.

Income rising means that consumer income rising and their purchasing power have increase. Honda
has kept up with this by introducing new models of car to go on sale this year.

Due to global cost of petrol keep on rising to make consumers to struggling in their economic
problem. Therefore, Honda introducing more economical cars and eco-friendly technology cars such
as 1.4 Honda Jazz and Honda Civic Hybrid.

SOCIAL FACTORS
Social factors include the demographic and cultural aspects of the external macroenvironment. These
factors affect customer needs and the size of potential markets. Some social factors include:

In UK, consumers have a strong beliefs in their local brand instead of other country brand such as
Japanese brand Honda, Toyota and etc. Therefore, Honda wanted to change their beliefs in
introducing ego-friendly cars which is Honda Civic Hybrid.

Language barriers Honda is moving to worldwide business so they deal in the English language easy
for customer to understand.

In UK, cars product are not too expensive as in other high tax country. Therefore, consumers rather
to purchase high quality automobiles from western country such as BMW, BENZ, BENTLY and etc.

Technological factors
Technological factors show how the trend helps the business

Nowadays, people too rely on GPS( Global Positioning System) to search a location they want to go
due to GPS had developed by new technology. Therefore, Honda cars have had to include Satelite
Navigation System in their newer models.

Environmentally friendly cars Honda developed i-vtec, which is a follow on from their infamous vtec
engines. The vi-tec engine provides fuel economy, ample torque and clean emissions.

According to (Honda website) Honda has always been passionate in innovating technology and
challenging boundaries of mobility advancements. It is our continuous commitment in providing joy
of mobility for communities all over the world with our innovations in safety, environment and
advanced mobility.

As you can see at economic factors at above, which is cost of petrol price keep on rising in Malaysia.
Therefore, Honda has been engaged in eco-friendly technology for a better, more sustainable future.
The result of the Civic Hybrid is combining fuel efficiency and eco-friendly technology with fun
diving.

LEGAL FACTORS
Due to employment laws in UK, employee working hours and the wages. Working hours in UK
standard are 8 hours per day and minimum wages are £5.93 per hours. Due to this situation, company
could be affected because of high wages in a company.

UK government has proposed all the company workplace must be as safe as is reasonably practical.
They cover issues such as training, reporting accidents and the appropriate of safety equipment to
make sure employee are in safety situation.

ENVIRONMENT FACTORS
Due to global warming of less petroleum to be found in country of produce petroleum, petrol price
are keep on rising. Therefore, Honda introducing ego-friendly technology cars such as Honda Hybrid
to protect global warming.

UK have different weather and climate in a years. Change in temperature can impact on cars engine
difficult to start when weather is cold and engine easy to overheat when weather is hot. Therefore,
Honda had developed different engine in different country due to weather and climate problem.

STP
SEGMANTATION
 Identify bases for segmenting the market
 Develop segment profiles

TARGET
 Develop measure of segment attractiveness
 Select target segments

POSITIONNING
 Develop positioning for target segment
  Develop a marketing mix for each segment

THANK YOU