Swot Analysis

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SWOT ANALYSIS

Strength :
Atlas Honda has following strengths.
 Quality product :
Atlas Honda ltd has quality products , which is one of its major strengths
 Good image:
Company has a good and favorable image in the market and in the mind of customers
 Excellence services:
Company provide excellent services to its customers
 Financial strength :
Atlas Honda ltd is financially strong company which is its another strength
 Intensive distribution network:
Company has incentive distribution network (dealer) throughout the country which is it
strength.
 Committed employees:
Company has committed and devoted employees that are loyal to the company , which is
another strength of the company
 Four Stroke Technology:
Its four stroke technology is being used in Honda motorcycles that is again another
strength of the company. This is the latest technology being used in this industry.
 Availability of parts:
The spare parts of the motorcycles are easily available all over the country which is
another strength of the company
 Largest service network:
The company has largest service network throughout the country
 Research and development:
The company has an R&D department which suggests the production department to use
latest technologies
 Market research :
Company has a sophisticated market research system, with the help of this system
company is able to get knowledge about competitors activities and market trends

WEAKNESS
 High price:
The price of Honda motorcycle is relatively higher than others.
 Lack of new model:
Company has not introduced any new model with major changes from a long time.

 Less number of branches:


Major weakness of the atlas Honda is that it has a less number of branches all over the Pakistan
as compared to their competitors.

 Lesser promotional activities:


Company has lesser promotional activities usually it does not use electronic media to promote
the motorcycles but now company is adopting the strategy to use the electronic media as well for
promotion.

Opportunity
 5s concept:
New concept of 5s is an opportunity for company to develop. With this new concept company
has introduced two new S other than sales , spare parts and service . These are special sales and
second hand sale. According to these new idea dealers will help the customers to replace their
second hand motorcycle with new one and customers can get motorcycles on credit as well.

 Poor quality of Chinese brands:


Chinese brands that are available in the market are not comparable with Honda motorcycles in
quality terms. So the poor quality of Chinese brands is an opportunity for the company as the
company believes that people using Chinese brand will eventually switch back towards Honda.
Because of relatively poor quality of Chinese brands.

 Government rule of localizations:


Recently government of Pakistan has passed a rule for the motorcycle industry in Pakistan .
According t this rule , within few years only that motorcycle company will be able to sell their
brands which all localize its production at a rate of 5% to 10% each year.
Threats

 Market conditions of karachi :


Karachi is the most populated city of Pakistan, So it is huge market for the company , But now a
days snatching f new Honda motorcycle is very common in Karachi because of this reason
people are reluctant to but new motorcycle . So it is a great threat for the company.

 New Chinese Brands:


There are more than 15 chinese brands of motorcycle available in the market. These are
competing Honda n price terms very badly . So it is treat for the company.

 Strong competition :

Strong competition from competitors in near future.

 Raw material:

Input raw material especially steel prices, rubber and petroleum products.

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