Marketing Management – 111620 Spring 2023

Assignment 1 Brand: Atlas Honda

SWOT:
Strengths:

• Brand Reputation: Atlas Honda is a well-known and trusted brand in Pakistan. The company has been
operating for more than 50 years and has built a reputation for producing high-quality motorcycles that
are reliable and durable.
• Distribution Network: Atlas Honda has an extensive distribution network in Pakistan. The company has
a presence in almost every major city in the country, and its products are easily available.

Weaknesses:

• Limited Product Innovation: While Atlas Honda has a research and development team, the company's
product portfolio has not seen significant innovation in recent years. This could make it challenging for
the company to keep up with competitors that are introducing new and innovative products.
• Dependence on a Single Market: Atlas Honda is heavily dependent on the domestic market in Pakistan.
Any economic or political instability in the country could negatively affect the company's sales and
revenue.

Opportunities:

• Growing Motorcycle Market: The motorcycle market in Pakistan is expected to continue growing,
driven by increasing urbanization, rising incomes, and changing lifestyles. Atlas Honda can capitalize on
this trend by introducing new and innovative products that cater to evolving customer needs.
• Partnership and Collaboration: Atlas Honda can collaborate with other companies to leverage their
expertise and resources. This could lead to new product development, cost savings, and improved
operational efficiency.

Threats:

• Economic and Political Instability: Pakistan is a developing country that faces economic and political
instability. This could impact the purchasing power of customers and lead to decreased demand for Atlas
Honda's products.
• Technological Changes: The motorcycle industry is constantly evolving, and new technologies are
emerging that could disrupt the market. Atlas Honda will need to stay abreast of these changes and
invest in research and development to remain competitive.

PESTLE:
Political Factors: Political stability is a concern in Pakistan, and any political instability could negatively
impact the business of Atlas Honda.
Economic Factors: Economic growth in Pakistan can drive the demand for motorcycles, which is a positive
factor for Atlas Honda.

Social Factors: Changing lifestyles and consumer preferences can impact the demand for different types of
motorcycles, and the company will need to keep up with these changes to remain relevant.

Technological Factors: Rapid technological changes are transforming the automobile industry, and Atlas
Honda will need to keep up with these changes to remain competitive.

Legal Factors: The company must comply with local and international regulations governing the automobile
industry, which can impact the production and sales of motorcycles.

Environmental Factors: The company can also explore opportunities to introduce environmentally-friendly
motorcycles to attract environmentally-conscious customers.

Porter’s Five forces:

Threat of New Entrants:

The motorcycle industry in Pakistan is highly competitive, and new entrants are always a possibility. However,
the high capital investment required to establish a manufacturing facility and strong brand recognition of Atlas
Honda create barriers to entry for new players.

Bargaining Power of Suppliers:

Atlas Honda sources its components and raw materials from various suppliers, and the bargaining power of
suppliers can impact the company's profitability. However, the company's strong market position and large
production scale allow it to negotiate favorable prices and terms with suppliers.

Bargaining Power of Buyers:

Customers have bargaining power due to the availability of alternative brands in the market. However, Atlas
Honda has a strong brand reputation, high-quality products, and a wide range of models to choose from, which
can limit the bargaining power of buyers.

Threat of Substitute Products:

Customers have the option to choose from a range of alternative products, such as cars and public
transportation. However, motorcycles are an affordable and convenient mode of transportation in Pakistan, and
Atlas Honda's product quality and brand recognition can limit the threat of substitutes.

Competitive Rivalry:

The motorcycle industry in Pakistan is highly competitive, with several local and international players.
However, Atlas Honda is the market leader and has a strong brand reputation, extensive distribution network,
and economies of scale that give it a competitive advantage over rivals.

Conducting customer research can help Atlas Honda pinpoint its strengths, weaknesses, opportunities, and threats. By
conducting surveys and focus groups, the company can identify what customers appreciate about its products and
services, as well as areas where improvement is needed. This information can then be used to develop strategies to
capitalize on opportunities and address threats.