INDIVIDUAL

ASSIGMENT
Name: Nguyễn Ngọc Minh Châu
Student ID: HS150227
Class: IB1602
Lesson: International Business Strategy (IBS301m)
Lecturer: Cung Thị Ánh Ngọc
Table of contents
I. Enviromental Analysis
1. What is Enviromental Analysis?
2. Which factors should be included in Enviromental
Analysis?
3. Analysis about Technological factor of Japan.
II. Porter’s Five Forces of Honda Viet Nam
1. Introduce about Honda Viet Nam
2. Five Forces For Honda Viet Nam

a, Intensity of rivalry

b, The threat of new entrants

c, Bargaining Power of suppliers

e, Bargaining Power of Buyer

d, Threat of substitutes

III. Refernce
I, Enviromental Analysis
1, What is Enviromental Analysis?

Environmental analysis is a strategic technique for identifying all internal and external
aspects that can influence a company's performance. External components reveal
opportunities and challenges outside the company, while internal components reveal the
business's strengths and limitations.

2, Which factors should be included in Enviromental Analysis?

1. Demographic trends: The term "demographic transition" refers to a long-term process of

population shift that has been witnessed throughout history.
- Population size structure refers to the density of individuals within different size
classes of population (1). The popular of the world is quickly increasing today.
Between 2020-2100, the world’s population is predicted to expand by 3 billion people
(2).
- Fertility is the natural capability to conceive or induce conception (3). Fertility began
to fall around the turn of the nineteenth century, as a result of rapid socioeconomic
development. According to the United Nations, global fertility will eventually
stabilize at less than two births per woman in the following decades (4).
- Mortality is the total number of persons who perished in a specific civilization and
time period.
- Urbanization is the movement of people from rural to urban areas, allowing cities and
towns to expand. The urban population of the countries has risen rapidly in recent
decades as a result of general population expansion and rapid urbanization. In the
poorest countries, where urban infrastructure has lagged behind, there is a shortage of
public transportation, housing, clean water and sanitation, and overcrowding in
schools.
2. Socio-cultural influences: These are the factors that influence consumer choice. They
analyze influencing characteristics including social values, beliefs and attitudes.
- Trends in lifestyle
- Fashion trends
- Evolution of top social issues
- Evolution in ethnic and racial differences
- Media views and ìnluence
3. Technological developments: It represents technology trends that can influence customer
choice and purchase. By analyzing new technologies and their potential impact on
consumer choice and competitive dynamics.
- State and maturity of existing technologies
- Evolution of promising emerging technologies
 - Public and private research funding
- Regulatores views about the technology
4. Macroeconomic impacts: analyze macroeconomic factors such as inflation, exchange
rate, employment, international trade and others and analyze their impact on the industry.
- Economic situation at home and overseas
- Status od trade agreements and negotiations with potential markets internationally
- Status of taxation issues
- Demand seasonality
- Markets volatility due to international or inernal conflicts
- Macroeconomic effects on the industry and particular markets
5. Political-legal pressures: to get an overview of the legal environment, analyze relevant
laws, regulations and policies.
- Current and pending relevant legislation
- Political and social pressures
- Status of public funding for projects and technology
- Current influence of lobbyists and advocacy groups
6. Global trade issues: How globalization and international trends are affecting the
exchange of goods and services (tangible and intangible) between countries. analyze the
impact of globalization and international governance bodies on industry competition.
- Trends in interest and exchange rates
- Status of internatioonal trade and monetary policies
- Globalization trends
- Status of international regulation

3, Analysis about Technological factor of Japan

In 1947, the United States and the United Kingdom led Japan's political transition to a
constitutional monarchy with parliamentary government following World War II. The
Japanese government is divided into three levels: national, provincial, and local. Electoral
councils will control each level. Japan is known for its ingenuity and originality
throughout the world. Over the years, the country has created cutting-edge technology. In
the sphere of technology, Japan has emerged as one of the pioneering nations. However,
renowned science and technology policy experts from around the world are increasingly
paying more attention to Japan.
The government has always prioritized research in order to advance it. Furthermore, the
government assists in the management of finances and safeguards the market for their
firms. As a result, debate has erupted in Japan concerning a new 'tech economy' model
developing from the industrial catch-up paradigm and efforts to establish a position in
sophisticated technologies. Transportation, infrastructure, transportation systems
intelligence, and water management are all sectors where Japan is a leader. Japan is third
among major industrialized countries in terms of research and technology spending,
trailing only China and the United States (5), confirming its status as a technologically
advanced nation. As of March 2018, Japan had 676000 scientists and engineers working
in the country. In 2018, total R&D spending in Japan was at $191.3 billion, accounting
for 3.48 percent of the country's GDP (6).
Japan has essentially little domestic oil or natural gas reserves, relying on imports to meet
their needs. After the United States and China, Japan was the world's fourth largest
consumer and importer of petroleum in 2016. Japan is also the world's largest importer of
natural gas and the world's second largest importer of coal. After China and the United
States, the country is the world's third largest electricity generator. In 2016, Japan
generated this energy with 82 percent conventional heat (gas, coal, and fuel oil), 8%
hydroelectricity, 4% biomass and waste, and 2% nuclear power. The rest is supplied by
wind, geothermal, and solar energy (7). Even with nuclear power, Japan can only meet
about 15% of its energy needs. However, it continues to be a major exporter of energy
industry equipment, with Japanese firms offering engineering, building, and project
management services to energy projects all over the world.
Since the commercialization of the Internet in 1993, the number of Internet users has
constantly increased. Japan had 27.7 million internet connections by September 2007,
making it the most broadband-connected country in the world. Following the United
States and China, it is the world's third-largest telecommunications network. The Internet
is used by 92.73 percent of Japanese people in 2019 (8). The huge adoption of ADSL as a
broadband technology in 2003 explains a lot of the Internet's success in Japan. Fiber-to-
the-Home (FttH) and other broadband services have also piqued the Japanese public's
interest. The nature of the broadband market, as well as the key broadband providers and
access methods (cable modem, ADSL, FttH, powerline broadband, and wireless
broadband wire) are all examined in this paper. The number of Internet users in Japan is
expected to exceed 116 million by 2021, according to the survey (9).
In the field of automation, Japan is a world leader. Robots have become an essential part
of the answer to chronic labor shortages in recent years. The population of Japan is
quickly dwindling, posing a labor market challenge (10). Robots that can execute tasks
across a wide range of industries are becoming a necessity. The utilization of high-tech
automated systems ensures that hospitals, restaurants, offices, airlines, factories, and
other institutions run smoothly. “ Studies show that right now, 49 percent of the Japanese
jobs are automatable. The job vacancies at its highest require Japan to either accept large
numbers of immigrants or rely on automation. Therefore, Japan's combination of artificial
intelligence and robots is the answer to the rapidly shrinking labor force” (11). Japan is
also well-known for its robotics achievements. When it comes to robots, this is most
likely the most advanced country. They're also applying what they've learned to real-
world situations. People are now accustomed to purchasing train tickets, books, plane
tickets, and other items on the internet. And it was all made feasible by the internet's
widespread use and the automated processes that were put in place. Furthermore,
advanced robots have been used in a variety of industries, including healthcare,
hospitality, manufacturing, and agriculture. There are numerous examples of practical
applications, ranging from special films for growing plants without soil to robots that
select crops by ripeness with the accuracy of a seasoned farmer. Such advances could
help to address the country's aging farmer population. A private company has even
shown a robot farm, where plants and leaves are planted and harvested almost entirely
without the use of human labor. The Internet of Things is helping to take farming to the
next level, with more and more machines and vehicles benefiting from it.
Many international congress organizers continue to choose Japan because of its
prominence as a technology hub. Examples of prominent international technological
conferences include the 51st Annual IEEE/ACM International Symposium on
Microarchitecture in Fukuoka (2018); the 11th ACM SIGGRAPH Asia (Conference and
Exhibition on Computer Graphics and Interactive Techniques) in Tokyo (2018) and Kobe
(2015), and the IEEE Asia Pacific Conference on Circuits and Systems Okinawa (2014).
All of these events are big technological gatherings around the world.
Every country in the globe is now dealing with environmental issues such as global
warming, pollution, and increasingly extreme weather variations. The most common
environmental issues that Japan faces are severe air pollution and extreme weather
occurrences such as earthquakes and tsunamis. The country is relying on technical
innovation to help its citizens cope with the situation. Japan was one of the first countries
to develop environmental legislation and policies. Faced with environmental issues,
Japan is now working on a project dubbed "Technology for Resilience" to explore
technology that is capable of protecting the environment (12). Diesel vehicles with
emission levels that do not meet the norms have been barred off the road in order to
prevent air pollution and safeguard the health and safety of the public. To address
people's demand for low-emission automobiles, automation is actively used in the
production of electric and hybrid vehicles. The country is subjected to a variety of
environmental hazards on a regular basis. Thousands of properties and structures were
devastated by earthquakes and tsunamis, leaving the population despondent. Japan, on the
other hand, recognizes that Mother Nature cannot be controlled, so it must devise
strategies to mitigate the effects of these frequently experienced conditions. As a result,
the construction industry has benefited immensely from automation and robotics in order
to boost productivity in the event that natural disasters strike the country again. Many
Japanese enterprises have created automated building construction systems in order to
boost production and speed up construction.
Japan will likely continue to outpace many other advanced economies in terms of
automation, robotics, and the integration of artificial intelligence into everyday life. It's a
fascinating country that has grown into a technological superpower that is focused on
strengthening itself.
II, Porter’s Five Forces of Honda Viet Nam
1, Introduce about Honda Viet Nam

Honda is one of the greatest global company and famous for motorcycles and carș. It has
expanded its business operations through the world, and provides consumers advance-
technological products at reasonable prices. Honda currently expands its businesses to
aircraft and robot industry, and seeks to improve itself continually for a long time (13).
Honda was established by Soichiro Honda in 1948. American Honda was founded in
1959 as a wholly owned first overseas subsidiary of the Honda Motor Company in the
United States(14). Honda's first automobiles public in October 1962 at the 9th Japan
National Auto Show (15). And from that time, has expanded its business from
motorcycles, cars, to power equipment, aircrafts, and robots(16). Honda is one of
fourteen companies dominate the world's auto industry (17).
Honda entered the Vietnamese market in 1966. The Super Dream was released in
December 1997. The first Honda factory in Vietnam was inaugurated in 1998 [18].
Honda's products were allowed by Vietnamese consumers (19). The Japanese
multinational firm has been active in Vietnam for more than 26 years, having first entered
the market in 1996. Honda Vietnam is a joint venture between three units: CTCP
(VEAM), Honda Motor Company (Japan), and Asian Honda Motor Company (Thailand)
, with two units each. Automobiles and motorcycles make up the product industry.
Honda Vietnam is proud to be a little part of the development and prosperity of Vietnam,
with modern production lines and advanced assembly technology. Thousands of
employment have been created, a portion of the state budget has been contributed, the
localization process has been hastened, and the company has actively participated in
social and humanitarian initiatives. Honda began selling automobiles in 2006, and in just
over a year, it has built a manufacturing, a large dealer network, sales training programs,
and driver services. In August 2006, Honda unveiled the first model, the Honda Civic,
while also focusing on staff safety. Honda presently offers models such as the Air Blade,
Click, Future, Super Dream, Vision, Lead, Air Blade, SH Mode in terms of motorcycles.
 The auto industry caters to three types of vehicles: SUVs, MPVs, and sedans (big,
medium, and small).
Honda has steadily solidified its market position through relentless efforts. Honda
Vietnam is a well-known motorbike manufacturer as well as a well-known automotive
manufacturer in Vietnam.

a, Intensity of Rivalry

Intensity of Rivalry is the degree to which enterprises in an industry put pressure on one
another and limit each other's profit potential is referred to as the intensity of competition
among competitors in an industry.
The motorcycle sector has a lot of competition. Because there are so many companies in
this field that provide a diverse range of products to customers, each one tries its hardest
to outperform the others in terms of net income and the ability to sell more goods in the
market. Honda's key competitors are YAMAHA, Suzuki, SYM, and Piaggio (VAMM),
therefore it needs to keep innovating, improving, researching, and developing to be
competitive. In the motorbike industry, there is no significant threat of public service
firms substituting. Because motorcycles are self-contained and do not restrict mobility,
even when there is a lot of movement. Bicycles, speedboats, busses, trains, and aircraft
can make our life easier, yet they may be less convenient in Vietnam than motorbikes.
Honda currently offers over 40 motorbike models, each with a distinct pricing point to
appeal to different customer demographics (20). Honda motorbikes have dominated the
Vietnamese market with attractive models, long-lasting engines, and engines that are
acceptable for the majority of riders. Honda motorcycles are also simple to use, have
cheaper maintenance and repair expenses than other manufacturers of motorcycles, and
Honda motorcycles, in particular, depreciate less when resold. Honda, on the other hand,
has the most "volatile" price, with the retail price at the dealer always being substantially
more than the company's advised price. Despite the fact that the monetary worth of
gasoline has a significant impact on consumers' decisions to buy a motorcycle, as well as
motorcycle care and insurance, motorcycle are nevertheless imported for use in their
daily and personal lives.
Honda Vietnam is experiencing challenges as a result of the impact of Covid 19, which
has disrupted the worldwide supply chain, causing a shortage of production components.
Locally produced scooter models such as Vision, Lead, SH Mode, and SH are
particularly affected, resulting in a supply deficit. Since April 2022, Honda Vietnam has
seen a significant drop in the average output of various popular scooter models in
Vietnam. If the component scarcity is not remedied, this situation is projected to worsen
in the following months. As a result, compared to the original plan, Honda's
manufacturing plan for domestically produced scooter models will be reduced.
Honda controls over 80% of the motorbike market, thus any scarcity has a significant
impact on the entire industry (21). Aside from decreased sales, new motorcycle
businesses such as accessories, plate stamping, and maintenance will be impacted. Honda
items' prices rise as a result of the decrease in quantity. The selling price can be tens of
millions of VND greater than the quoted price (22). Despite the expensive price, clients
may wait from from a few weeks to a month for their car, and many HEADs refuse to
accept deposits since they do not sure when the motorcycle will be delivered. Customers
move to buying used motorcycle since there are no better options for a new motorcycle,
and they enjoy the neutral design as well as Honda's long history of durability and low-
damage vehicles (23). They are Honda clients who have been loyal to the company for a
long time.
Currently, in the face of increasing environmental pollution in the world, many countries
encourage their people to use environmentally friendly means such as electric motorbikes
and Vietnam is not an exception to that trend. According to the report, Vietnam ranks 4th
in the world in terms of annual motorcycle consumption with about 3 million units (24).
By the end of the year, with the appearance of electric vehicles, it had a strong impact on
the electric motorcycle market in Vietnam. created a wave of strong competition between
domestic and foreign motorcycle brands. In response to this, Honda Vietnam filed the
exclusive industrial design of the electric Honda U-Go model in Vietnam in April of
2022 (25). From now to 2024, Honda will research and launch 3 all-electric motorcycle
models in different segments to compete with rivals (26).
b, The threat of new entrants
The threat of new entrants is the threat that a new competitor poses to an industry's
existing businesses. This happens when a new firm starts selling a product or service that
is comparable to one offered by an existing company.
The next element in Honda's five-force model is the threat of new entrants. In fact, Honda
is a brand that has held a strong position in the motorcycle market. Honda has been
attached since the early years of building the Vietnamese economy, which makes it
difficult for many other brands to shake their position. Therefore, the threat from new
entrants in the industry has a low probability of affecting the company due to the
following factors.
- High capital requirements to establish a company
- High cost requirements for brand development
- Product differentiation: It the difference in quality, design, product packaging...
In 2020, Honda Vietnam Joint Venture has a charter capital of VND 1,007,972,500,000.
Of which 70% capital is Honda Corporation; 30% - Vietnam Engine and Agricultural
Machinery Corporation (27).By 2020, Honda has built 3 motorcycle factories in Vinh
Phuc and Ha Nam with production workshops and a spare parts center with a wide range
of vehicles, from digital cars, scooters to manual scooters such as Wave Alpha, SH,
Vision, Winner X...With 3 factories, HVN's capacity reaches 2.5 million motorbikes/year
and has 800 sales agents nationwide. In
Vietnam, motorbikes are the main means
of transportation for Vietnamese people,
accounting for more than 85% of the total
number of vehicles. For many years, the
number of motorbikes sold by this
business fluctuates at 1.9 - 2.2 million
units per year, and always holds a market
share of over 70% of the Vietnamese
market (28).
Currently, Honda Vietnam has more than 40 models of motorcycles with different
designs and prices, suitable for all market segments. Honda has always been the leading
motorcycle brand in terms of product quality right from the first days of entering the
Vietnamese market. Honda motorcycles are always described with words such as high
quality, durability, reasonable price, luxury, convenience... Honda engines are always
carefully invested, achieving excellent stability. To bring a sense of certainty and safety
to the driver. Honda's engine is designed to be extremely suitable for the terrain of
Vietnam when it has an advanced cooling system that helps the car not overheat even
when operating in a high-temperature environment, convenient on and off systems to
help people The driver easily starts and stops the vehicle when participating in traffic.
Honda models are equipped with the famous ESP engine that saves fuel but still retains
the strong movement of the motorcycle. All Honda scooters are equipped with a smart
 lock system, making it easier for car owners to connect to the car from a distance, making
it easier to find the car. Every Honda vehicle has a very clear warranty policy. In addition
to the first 3-year or 30,000km warranty, customers can also receive many commitments
from authorized dealers.
It can be said that it is very difficult to enter the industry and compete with big and very
famous brands such as Honda, Yamaha, Suyuki, SYM, and Piaggio. Suppose they want
to enter the Vietnamese motorcycle market. then, they need huge capital support to invest
in R&D and production and development of their products. Not only that, it also incurs
additional costs in bringing products to market and marketing those products. After all
these costly steps, the products will start to generate revenue for the company.
Even when new businesses have successfully entered the market, they still face stiff
competition from existing players in the industry. The challenge is to assert itself as a
brand in the market, including competitors such as Honda, Yamaha, Suyuki, SYM, and
Piaggio, etc. Therefore, costs are needed to compete with big brands. That would also be
huge. Therefore, it is difficult for a new company to enter the market and compete with
such big players. However, this is entirely possible for large enterprises with solid
financial capacity. For example, Vinfast has introduced to the electric motorcycle market
to compete with other brands such as Honda, Yamaha, Suyuki, SYM, and Piaggio...With
great financial support from the government. When people care more about the
environment, prefer to use Vietnamese goods, they turn to electric motorbikes. It is a big
challenge for Honda in the future.
However, with the spirit of never resting on victory, Honda always analyzes the target
market. New car lines are also constantly being developed and born. This has helped
Honda have a high level of competition in the market and meet all the requirements of
consumers in terms of durability, fuel economy, beautiful design, ....

c, Bargaining power of suppliers

Bargaining power of suppliers is suppliers can exert pressure on businesses by rising
prices, deteriorating quality, or reducing product availability. The competitive
environment and profit potential of purchasers in an industry may be affected by this
bargaining power.
Bargaining power of suppliers is an important element of Michael Porter's entire Five
Forces model. The quality of the product has always been Honda's top priority when it
comes to car production. The current car brands are all modern and diverse. So quality is
interchangeable. Compared to previous years, price is no longer an important factor for
consumers when choosing a car.
Honda has a worldwide supply chain and distribution network. The company has
partnered with several global suppliers to obtain raw materials. Each Honda car is made
from 20,000 to 30,000 parts. The brand has formed long-term partnerships with a number
 of suppliers that can provide good quality raw materials for the production of its cars.
However, the pressure from suppliers is low because there are many suppliers who can
supply raw materials to Honda, moreover, the suppliers are scattered all over the world
and do not have enough power. Financial. Due to the large amount of imports from
different countries around the world, Honda Vietnam is currently facing a big problem
with the import of components due to the impact of covid 19. This serious lack of
components has caused serious problems. The company's motorcycle production was
delayed (29).
In addition to foreign suppliers, Honda began to depend on domestic manufacturers for
the production of non-core components in order to reduce the production costs of its
motorcycles (30). In response to changes in Vietnam's macroeconomic situation,
especially the high exchange rate and production costs, Honda Vietnam is rapidly
increasing the proportion of domestically produced parts produced by manufacturers
supply in Vietnam supply (31). To solve this problem, Honda has invested and worked
closely with domestic manufacturers to improve productivity and quality management in
the long term, and their domestic rate is now over 90%. Components of some products
such as SH (2013), SH (2020) and Air Blade are manufactured over 90% in Vietnam (32)
. In April 2013, PINACO officially became a battery supplier for Honda Vietnam.
Moreover, Honda holds the strength in bargaining power because of its large scale and
financial strength. In addition, other factors that give this brand a higher bargaining
power are the image and credibility of the brand. To create a competitive advantage in the
market, the company has launched a brand promotion strategy to build a brand name in
the minds of customers. Then cleverly applied the strategy of diversifying products from
the low-priced segment to the high-end segment to serve all different customer classes in
the market. Currently, Honda retains its bargaining power because of its large-scale
ownership, financial strength, and trust from customers...
The company can also strengthen its position against suppliers by reducing dependence
on a few suppliers. This will increase the price sensitivity of the brand. Developing long-
term contractual relationships with suppliers from different regions not only reduces their
bargaining power, but also allows Honda to improve its supply chain efficiency.
Finally, Honda can find alternative ways to manufacture the product if the demand for the
product is high enough and the company has a requirement for competence and expertise.
Redesigning products and diversifying product lines can also help an organization reduce
the power of suppliers in the market.

d, Bargaining Power of Customers

Bargaining Power of Customers is consumers can exert pressure on firms to deliver
higher-quality items, better customer service, and lower prices.
 Pressure from Bargaining Power of Customers on Honda is high for a number of reasons.
First, it is because customers can find all the necessary information about the product
through the internet. They carefully evaluate any product before making a final purchase
decision. Moreover, the level of competition in the market is increasing day by day with
many products for customers to compare and choose.
Honda can manage the bargaining power of buyers by increasing and diversifying their
customer base. This can be done by introducing new products, targeting new market
segments and adopting product diversification strategies.
On average, each household in Vietnam has 1-2 motorbikes (there are about 58.1 million
motorbikes (33) because the Vietnamese population is about 97.3 million people (34)
Therefore, Vietnam has a large motorcycle consumption. Honda consumers in Vietnam
include both women and men. They divide customers into many different segments such
as 18-24 years old, 25-35 years old, 35-44 years old and over 44 years old, depending on
the style preferences of each object. means of transportation for Vietnamese people at
reasonable prices. Besides, the average price of a motorbike sold in Vietnam ranges from
$770-$43490. Vietnamese people can buy a motorbike by themselves without saving for
1 to 2 years. Honda customers have a moderate level of price sensitivity as Honda
Company dominated the Vietnamese market with a 77% market share in 2019.
In all categories, other brands such as yamaha, SYM,... have a number of products
ranging from low-priced to luxury cars. Brands are investing in marketing as well as
product safety to create better cars and attract customers. Several brands are competing
for the same customers, which also makes customers more valuable and gives them more
bargaining power over the brand. This way, the customer's overall bargaining power will
be higher.
Marketing and promotional strategies can be helpful in this regard. Honda Vietnam
builds loyalty by adding innovation and providing a great customer experience that can
increase switching costs, while also reducing customers' bargaining power.
Besides, after a relatively long period of attachment to the means of transport, which is
motorbikes, the motorcycle culture is formed in the majority of people. Surveys have
shown that the percentage of cars consumed is increasing day by day, but motorbikes are
still the dominant vehicle in Vietnam. Understanding this, Honda Vietnam has oriented to
focus on the development of motorcycles more in the Vietnamese market.

e, Threat of Substitutes
Threat of Substitutes is the availability of different products from outside a sector that a
customer could acquire
The next element in Honda's five-force model is the threat of substitution. The threat
from substitutes in Honda's case is moderate. In fact, Honda is a brand that already has a
strong position in the motorcycle market. Honda has been attached since the early years
 of building the Vietnamese economy, which makes it difficult for many other brands to
shake their position.
Yamaha joined the motorcycle market a year after Honda Vietnam, with the advantage of
scale and large investment capital. Yamaha has always competed fiercely and won
HVN's market share. Its products are loved by many people, especially young people.
Although it cannot compete with Honda (Honda Vietnam) in terms of quality: durability,
fuel economy, but this company's line of digital cars is very rich and diverse, very trendy.
But in recent years, Honda is tending to pay more attention in the design style. The car's
styling is somewhat more youthful, especially with scooters like you're seeing today.
Currently, Honda products are always priced in accordance with the maximum customer
range, from affordable products serving essential travel needs to high-end products with
very high prices to satisfy customers. Satisfying user needs, showing the level of users.
However, in the future, people will pay more attention to environmental protection. They
will gradually switch from gasoline-powered vehicles to environmentally-friendly fuel-
powered vehicles. Electric vehicles will be the trends of the future. Currently, in the
Vietnamese market, the company has not yet launched a vehicle that runs on
environmentally friendly fuels. Thus, if Honda Vietnam does not quickly research and
launch these types of vehicles, in the future Honda's position in the motorcycle market in
Vietnam will decrease sharply. Then in the not todistant future, rival car manufacturers
like Yamaha, or the recent new car company Vinfast will dominate the market.
However, we can know that Honda, with the spirit of never resting on winning, always
analyzes the target market. New car lines are also constantly being developed and born.
This has helped Honda have a high level of competition in the market and meet all
consumer requirements in terms of durability, fuel economy, beautiful design, etc.

III, Recommendation
By analyzing Michael Porter's five-force model of Honda, strategists at Honda Motor
Co., Ltd. will get a complete picture of the competitive pressures that directly affect the
company's profitability in the motorcycle and engine manufacturing industry. They can
soon identify changing trends in the market and can react quickly to exploit emerging
opportunities. By understanding the details of the competitive pressure 5 model, the
managers of Honda Motor Co., Ltd. can shape competitive pressures in their favor.
After analyzing the current state of the business and the development of other businesses
in the same industry, Honda will know for itself which pressure is beneficial for its
business. Through that, it also offers a better development strategy, promoting
competitiveness based on beneficial pressures. Self-reflection and assessment is the best
way to find out the strengths and weaknesses of the business itself so that it can easily
propose a remedial plan. The business environment is vast and constantly changing,
requiring Honda to constantly innovate and adapt to keep up with development trends. 5
competitive pressures help Honda Vietnam have the most correct view of the upcoming
 progress in the context of an increasingly innovative and creative business market.
Improving design, quality and accepting pressure from many sides is also a way to help
businesses grow stronger.

However, this model is also for reference only, only correct at a time. The model is
suitable for markets with a simple structure, while today businesses need to evaluate
more than other factors such as segments, markets, large product groups, etc., instead of
just being important, pay attention to the 5 pressures.

IV, Reference
(1) Arthur C. Benke, Alexander D. Huryn, in Methods in Stream Ecology (Third Edition),
2017
Available from: https://www.sciencedirect.com/topics/earth-and-planetary-sciences/
population-size
(2) World population prejected to reach 9.8 billion in 2050, and 11.2 billion in 2100, The
United Nations, 21 June 2017
Available from: https://www.un.org/development/desa/en/news/population/world-
population-prospects-2017.html
(3) Rachel Gurevich, RN, What is fertility?, 24 November, 2020
Available from: https://www.verywellfamily.com/fertility-4014725
(4) Global population growth and sustainable development, The United Nations, 2021
Available from:
https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/
undesa_pd_2022_global_population_growth.pdf
(5) Felix Richter, these are the top 10 manufacturing countries in the world, The world
economic forum, 25 Feb 2020.
Available at: https://www.weforum.org/agenda/2020/02/countries-manufacturing-trade-
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