The External Assesment: Atlas Honda LTD

ATLAS
[THE EXTERNAL ASSESMENT]

HONDA
Ltd.
Prepared By
Faheem Mustafa FA07-BBA-089
Imran Zubair Sheikh FA07-BBA-097
Amber Mushtaq FA07-BBA-007
Namra Ashfaq FA07-BBA-053
Introduction of Atlas Honda Limited
Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor
Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and
Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were
established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken
over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL
manufactures and markets Honda motorcycles in collaboration with Honda Motor
Company. Honda motorcycles are by far the largest selling motorcycles in the country
with an unmatched reputation for high quality, reliability and after-sales-service
Vision
Market leader in the motorcycle industry, emerging as a globally competitive centre of
production and exports.
Mission
A dynamic growth oriented company through market leadership, excellence in quality
and service and maximizing export, ensuring attractive returns to equity holders,
rewarding associates according to their ability and performance, fostering a network of
engineers and researchers ensuing unique contribution to the development of the
industry, customer satisfaction and protection of the environment by producing emission
friendly green products as a good corporate citizen fulfilling its social responsibilities in
all respects.
Quality Policy
 Commitment to provide high quality motorcycles & parts
 Right work in first attempt and on time
 Maintain and continuously improve quality
 Training of manpower and acquistion of latest technology
 Safe, clean and healthy enverionment
 Market leadership and prosperity for all
OPPORTUNITIES
“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 this new idea dealers will help the customers to replace their second hand
motorcycle with new one and customers can get motorcycle on credit as well.
POOR QUALITY OF CHINESE BRANDS
Chinese brands that are available in the market are not comparable with HONDA
motorcycle 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 LOCALIZATION
Recently government of Pakistan has passed a rule for the motorcycle industry in
Pakistan. According to this rule, within few years only that motorcycle company will be
able to sell their brands which will localize its production at a rate of 5% to 10 % each
year. HONDA has localized its production up to 89% till now. So the company is leading
the industry in this regard. This is an opportunity for company as it has more
government support because of this reason (localization).
 Growing motorcycle market – Estimated bikes 500,000 by the end of 2007

compared to 300,000 in 2005/2006
 Customers realizing quality matters, as problems are already cropping up in new
entrants models
 Initiatives and proposals in process for coping with increased demand of bikes
 Newer segments introduced with entry of new models, design, which still have
huge potential for growth
THREATS
MARKET CONDITIONS OF KARACHI
Karachi is most populated city of Pakistan. So it is a huge market for the company. But
now a days snatching of new HONDA motorcycle is very common in Karachi. Because
of this reason people are reluctant to buy 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 in price terms very badly. So it is a threat for the company.
 Many new features inherent in latest bike models increasing customer
expectations a great deal for the future.
 Crucial economic conditions of Pakistan can lead to the decreased sales.
 WTO (World trade Order) opening local markets for global competition
 Competitors launching newer models with stress on reduced price for our price
sensitive economy proving serious threat in near future
 Theft and snatching of bikes increasing, reaching 2500 bikes in period of
January-May 2007.
References
Atlas Honda (http://www.atlashonda.com.pk/index.php)

The External Assesment: Atlas Honda LTD

Uploaded by

Copyright:

Available Formats

The External Assesment: Atlas Honda LTD

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The External Assesment: Atlas Honda LTD

Uploaded by

Copyright:

Available Formats

ATLAS

[THE EXTERNAL ASSESMENT]

 Growing motorcycle market – Estimated bikes 500,000 by the end of 2007

You might also like