Strategy

SWOT Analysis of Mazda

by The TSW Team

The Mazda Motor Corporation’s SWOT will elaborate the Strength & Weakness of, and the Opportunities and Threats for Mazda Motors Corporation.

Mazda Motors, commonly known as Mazda, is a Japanese automotive company based in Fuchū, Aki District, Hiroshima, Prefecture, Japan. It was founded by a Japanese industrialist named Jujiro Matsuda.

Mazda became the fifteenth largest automotive company in the whole world by 2011. It offers different types of cars including sporty, and environmentally friendly cars. Mazda is now known as affordable and quality-performance vehicles.

SWOT Analysis of Mazda Motor Corporation

The STRENGTHS for Mazda

Strengths of Mazda focuses on the facts of what internal capabilities this company has that made itself as one of the successful automobile manufacturers of the world.

  • Sole manufacturers of Wankel engines: Wankel engine, which is one type of rotary engine that has a simple structure, lightweight but provides high-power. It’s said that without Mazda there won’t have been any rotary engines and without rotary engines, there won’t have been any Mazda. This company, to face the growing competition in the early 1960s, decided to use rotary engines into their vehicles, did some changes and introduced the engine as Wankel engine. And the result was surprising. It became the most effective maker of Wankel engines which made this company a reputed influential carmaker and claimed a strong position in the automobile industry.
  • Fuel efficiency and adequate powers of vehicles: Mazda is known as one of the most fuel-efficient vehicle manufacturers. This company’s SKYACTIV technology provides an impressive environmental and economic benefit through fuel efficiency. They’ve managed to upgrade the overall effectiveness of their vehicles by as much as 30%! Also, the lower price has made its cars more appealing in the market. Some of Mazda’s fuel-efficient car models are, Mazda Axela, Mazda Atenza, Mazda Blante, Mazda Premacy, Mazda Demio, Mazda Flair etc.
  • One of Japan’s top five automobile producer: Japan has given us some world-class automobile manufacturing companies. And among all those Toyota, Nissan, Honda, Suzuki brands, Mazda still has the position among the top five. The new architecture, long-road facility and sustainable brand image have put this company in a good position. Though the competition is fierce, Mazda didn’t lose its long-built glory.
  • Iconic product portfolio: Mazda has an extended product portfolio which makes this company more appealing among its customers as they have the option of choosing from various categories. Its product portfolio includes Station wagon, family sedan, compact car, supermini car, commercial van, pickup truck, crossover SUV’s, sports convertible, minivan, Keicar etc.

The WEAKNESSES of Mazda

Mazda’s weaknesses indicate in which categories this company lack of resources and expertise, among others in the market.

  • Weak global position: In terms of global presence, Mazda couldn’t make a strong position like other Japanese automobile manufacturers. Even in the US, this company has the 16th position in terms of car selling. Also, the distribution channel of this company is not effective. It still couldn’t reach many countries of the world and struggles for ensuring proper availability of their products.
  • Inefficient marketing activities: Even though Mazda has made some fantastic flagship car models, still it couldn’t get a sufficient amount of coverage due to poor marketing strategies. While other Japanese companies invest a huge amount every year on promotional activities, Mazda is still struggling here. As a result, in today’s world of marketing, many people find it challenging to remember Mazda and its cars.
  • Less investment in new technologies: The automobile industry is growing day by day with extensive research and development. Though Mazda has proved itself in innovation, it seems like this company is slugging in this sector for a very long time. The next era of car technology will be most probably dominate by EV, AI, anonymous cars etc. Where other companies have declared that they’re working on these things, there’s no activity has still taken by Mazda.

The OPPORTUNITIES for Mazda

Opportunities of Mazda indicates how it can capture the new opening of chances in the market and improve itself.

  • Targeting Asian markets: Many automobile companies are now trying to enter into the most potential Asian market. Some of them even capture the market already. And we’ve already pointed out the weak global presence of Mazda. That’s why it can be an opportunity for this company to enter here with its low profile models that suits the standard of living of these counties people. This company can turn into a very profitable business here.
  • The emergence of new technologies: Mazda, with its long-built experience and resources, can easily capture the market by adapting emerging technologies demanded by the customers. As in this era of modernization, people’s demands are frequently changing, and they want innovation more than ever. And if Mazda can show their expertise in these fields, this company in a very little time, will be able to overcome some tough competition in the market.
  • Demand for less expensive cars: As per the present situation, people will tend to buy less expensive vehicles to meet their necessities as soon as the recession starts. The market for premium cars may fall drastically, and there’s a high chance of happening of that. That’s why Mazda should analysis the market situation and start preparing itself to meet those new demands. This company has already made some lost cost cars in the past. It can rebrand those or develop something unique to catch the upcoming scopes.

The THREATS for Mazda

Threats point out to the potential risks that can arise and put Mazda’s position into a vulnerable situation.

  • Fierce Competition: Mazda has a high risk of losing its competitive advantage among other automobile companies. Even is Japan, brands like Toyota, Honda, Suzuki has already made it hard for Mazda to survive in the market. And there’re other global companies which can make the situation much worse. Mazda needs to take necessary steps to fight this battle, or else it may lose a significant portion of its existing market share.
  • Rise of cost in fuel & other raw materials: For every car manufacturers in the world, it is getting tough to maintain a smooth production system due to the rise in cost in raw materials. This situation is making it difficult for them to keep the operating cost low. Also, the new rules by different countries of regulating fossil fuels have put car companies in a vulnerable situation. And Mazda isn’t excluded from that.
  • Fluctuation in Japanese currency: The profits Mazda makes all over the world get transferred into Japanese currency Yen, And this makes the whole profit count much lower. Also, the fluctuation rate will much rise during and after the pandemic of COVID-19. It’ll make things worse for Japanese companies like Mazda, who have a weaker global position.

Recommendation

The Mazda SWOT clarified the external and internal condition for Mazda Motor Corporation. Mazda offers good looking cars comparing conventional carmakers. Also, it has a huge reputation for customer service. And the largest opportunities waiting for Mazda is the huge market of the environment-friendly cars.

Related

References

  • http://www.autonews.com/article/20150204/OEM01/150209935/mazda-profits-dinged-by-lower-margin-models-higher-taxes
  • http://fortune.com/2014/07/30/mazda-sales-growth/
  • Mazda Official Website
  • https://www.referenceforbusiness.com/history2/30/Mazda-Motor-Corporation.html
  • https://www.mazda.com/en/innovation/stories/rotary/newfrontier/
  • https://blog.beforward.jp/car-top-lists/10-mazda-cars-great-fuel-economy.html
  • https://www.autonews.com/article/20171022/OEM06/171029915/once-a-tech-leader-japan-s-auto-industry-plays-catch-up
  • https://www.mbaskool.com/brandguide/automobiles/4558-mazda.html