Moonka Auto: Growth Strategies Of A Honda Dealership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Moonka Auto: Growth Strategies Of A Honda Dealership
In February 2016, the owner of Moonka Automobile was struggling with the strategic decision he needed to make to increase revenue and improve profitability. Moonka Automobile had been in business as a full-service, two-wheeler dealership for eight years in India, had a strong customer base, a good reputation, and a positive relationship with the manufacturer, Honda. But, competition was increasing and business growth was slowing. The owner identified various alternatives for growth, but given the changes taking place in the two-wheeler market, the owner's limited resources, and his excellent relationship with Honda, he needed to make some difficult decisions. Atul Arun Pathak is affiliated with XLRI-Xavier School of Management. Gyanesh Mishra is affiliated with XLRI-Xavier School of Management.
Swot Analysis of "Moonka Auto: Growth Strategies Of A Honda Dealership" written by Atul Arun Pathak, Gyanesh Mishra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Moonka Honda facing as an external strategic factors. Some of the topics covered in Moonka Auto: Growth Strategies Of A Honda Dealership case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Moonka Auto: Growth Strategies Of A Honda Dealership casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, technology disruption, supply chains are disrupted by pandemic ,
central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Moonka Auto: Growth Strategies Of A Honda Dealership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Moonka Auto: Growth Strategies Of A Honda Dealership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Moonka Honda, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Moonka Honda operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Moonka Auto: Growth Strategies Of A Honda Dealership can be done for the following purposes –
1. Strategic planning using facts provided in Moonka Auto: Growth Strategies Of A Honda Dealership case study
2. Improving business portfolio management of Moonka Honda
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Moonka Honda
Strengths Moonka Auto: Growth Strategies Of A Honda Dealership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Moonka Honda in Moonka Auto: Growth Strategies Of A Honda Dealership Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Moonka Auto: Growth Strategies Of A Honda Dealership Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Moonka Honda has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Moonka Auto: Growth Strategies Of A Honda Dealership HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Moonka Honda is one of the most innovative firm in sector. Manager in Moonka Auto: Growth Strategies Of A Honda Dealership Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Moonka Honda has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Moonka Honda to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Moonka Honda in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Moonka Honda has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Moonka Honda is one of the leading recruiters in the industry. Managers in the Moonka Auto: Growth Strategies Of A Honda Dealership are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Moonka Honda is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Moonka Honda is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Moonka Auto: Growth Strategies Of A Honda Dealership Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Moonka Honda is present in almost all the verticals within the industry. This has provided firm in Moonka Auto: Growth Strategies Of A Honda Dealership case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Moonka Honda has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Moonka Auto: Growth Strategies Of A Honda Dealership Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Cross disciplinary teams
– Horizontal connected teams at the Moonka Honda are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Innovation & Entrepreneurship field
– Moonka Honda is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Moonka Honda in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Moonka Auto: Growth Strategies Of A Honda Dealership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Moonka Auto: Growth Strategies Of A Honda Dealership are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Moonka Auto: Growth Strategies Of A Honda Dealership, it seems that the employees of Moonka Honda don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Products dominated business model
– Even though Moonka Honda has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Moonka Auto: Growth Strategies Of A Honda Dealership should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Moonka Honda needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Lack of clear differentiation of Moonka Honda products
– To increase the profitability and margins on the products, Moonka Honda needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Moonka Honda is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Moonka Honda needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Moonka Honda to focus more on services rather than just following the product oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Moonka Honda supply chain. Even after few cautionary changes mentioned in the HBR case study - Moonka Auto: Growth Strategies Of A Honda Dealership, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Moonka Honda vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Moonka Auto: Growth Strategies Of A Honda Dealership has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Moonka Honda 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Moonka Auto: Growth Strategies Of A Honda Dealership HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Moonka Honda has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Moonka Honda is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Moonka Auto: Growth Strategies Of A Honda Dealership can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Moonka Auto: Growth Strategies Of A Honda Dealership HBR case study mentions - Moonka Honda takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Low market penetration in new markets
– Outside its home market of Moonka Honda, firm in the HBR case study Moonka Auto: Growth Strategies Of A Honda Dealership needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Moonka Auto: Growth Strategies Of A Honda Dealership | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Moonka Auto: Growth Strategies Of A Honda Dealership are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Moonka Honda can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Moonka Honda can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Moonka Honda in the consumer business. Now Moonka Honda can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Moonka Honda can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Moonka Honda is facing challenges because of the dominance of functional experts in the organization. Moonka Auto: Growth Strategies Of A Honda Dealership case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Moonka Honda has opened avenues for new revenue streams for the organization in the industry. This can help Moonka Honda to build a more holistic ecosystem as suggested in the Moonka Auto: Growth Strategies Of A Honda Dealership case study. Moonka Honda can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Moonka Honda in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Moonka Honda to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Moonka Honda can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Moonka Honda can use these opportunities to build new business models that can help the communities that Moonka Honda operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Moonka Honda to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Moonka Honda can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Moonka Auto: Growth Strategies Of A Honda Dealership, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Moonka Honda has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Moonka Auto: Growth Strategies Of A Honda Dealership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Moonka Auto: Growth Strategies Of A Honda Dealership are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Moonka Honda.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Moonka Auto: Growth Strategies Of A Honda Dealership, Moonka Honda may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Moonka Honda will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Moonka Honda with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Moonka Honda needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Innovation & Entrepreneurship industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Moonka Honda needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Moonka Honda high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Moonka Honda demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Moonka Honda can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Moonka Honda in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– Moonka Honda can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Moonka Auto: Growth Strategies Of A Honda Dealership Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Moonka Auto: Growth Strategies Of A Honda Dealership needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Moonka Auto: Growth Strategies Of A Honda Dealership is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Moonka Auto: Growth Strategies Of A Honda Dealership is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Moonka Auto: Growth Strategies Of A Honda Dealership is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Moonka Honda needs to make to build a sustainable competitive advantage.
