Honda Swot External Factors

1. Competitve Profile Matrix

Competitive profile matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrix show the clear picture to the firm about their strong points and weak points relative to their competitors. The CPM score is measured on basis of critical success factors, each factor is measured in same scale mean the weight remain same for every firm only rating varies. The best thing about CPM that it include your firm and also facilitate to add other competitors make easier the comparative analysis.

CRITICAL SUCCESS FACTORS

Critical success factors  are extracted after deep analysis of external and internal environment of the firm. Obviously there are some good and some bad for the company in the external environment and internal environment. The higher rating show that firm strategy is doing well to support this critical success factors and lower rating means firm strategy is lacking to support the factor.

RATING

Rating in CPM represent the response of firm toward the critical success factors. Highest the rating better the response of the firm towards the critical success factor ,rating range from 1.0 to 4.0 and can be applied to any factor.

WEIGHT

Weight attribute in CPM indicates the relative importance of factor to being successful in the firm’s industry. The weight range from 0.0 means not important and 1.0 means important, sum of all assigned weight to factors must be equal to 1.0 otherwise the calculation would not be consider correct.

WEIGHTED SCORE

Weighted score value is the result achieved after multiplying each factor rating with the weight.

TOTAL WEIGHTED SCORE

The sum of all weighted score is equal to the total weighted score, final value of total weighted score should be between range 1.0 (low) to 4.0(high). The average weighted score for CPM matrix is 2.5 any company total weighted score fall below 2.5 consider as weak. The company total weighted score higher then 2.5 is consider as strong in position. The other dimension of CPM is the firm with higher total weighted score considered as the winner among the competitors.

Example CPM OF Honda :

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1. SWOT Analysis – External Factors

• Opportunity

Opportunities provide an organization with a means to improve its performance and competitive advantage in a market environment. Some opportunities can be foreseen, such as being able to expand a franchise into a new city, while some may fall into your lap, such as another country opening up its market to foreign business.

Opportunity of Honda :

• Alternative fuel vehicles that global environmentally friendly.
• Automobile market ( demand ) is increasing by time.
• Increasing fuel price, this factor can brought Honda an opportunity, and also a threat. Honda can see this problem as a opportunity to create another innovation in their automobile that doesn’t require a lot of fuel (economical)
• Product expansion in developing country
• Trusted in quality as a good value for customer ( loyal customer)
• Have a good “Positioning” at people’s heart
• Very famous brand (especially around ASIA)

• Threats

Threat are anything from your organization's outside environment that can adversely affect its performance or achievement of its goals. Ironically, stronger organizations can be exposed to a greater level of threats than weaker organizations, because success breeds envy and competition to take what your organization has achieved.

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