Mitsubishi Motors

SWOT Analysis

Strengths:
Customer-centric: Consumers have always been strongly oriented on Mitsubishi Motors. The company
has always concentrated on the voice of the consumer and takes input on a daily basis and the
company's consciousness is also a product of that.

History: The company was first founded in 1870 and the company has since been involved in the
production of new designs that are in line with the current market demands. The company's rich past
has been responsible for the creative spirit the company has shown.

Positioning: their vehicles were positioned by Mitsubishi as both safe and robust. The company mainly
competes in segments that require stronger and larger vehicles, and performance has been rated high
for these cars. The placement of the products has always been sponsored by the required commercials.

Attention to detail: detail is of great importance to the organization and has always been focused on the
value element of each component to ensure that they come at the lowest possible cost. The
organization also promises that testing is carried out to justify each new addition and the expenditure
that needs to be shelled out for them.

Diversified portfolio of goods and an epitome of well balanced revenue sources.

Strong global reach and strong emphasis on Research and Development

Weaknesses:

The structure of the organisation is only consistent with the current business model, thereby restricting
development in neighboring product segments.

Research and development spending is among the sector's fastest growing players. While Mitsubishi
Electric Corporation spends above the industry average on research and development, in terms of
innovation, it has not been able to compete with the industry's leading players. It has emerged as an
established company looking forward to introducing products to the market based on proven features.

Compared to rivals, Days inventory is high, allowing the company raise more capital to invest in the
channel. This can affect development in the long term.

While Mitsubishi Electric Corporation is one of the leading companies in its sector, it has faced
challenges in moving to other product segments with its current culture.

Mitsubishi Electric Company has a higher turnover rate relative to other companies in the sector and has
to spend even more on training and growth of its workers compared to its rivals.

Mitsubishi Electric Corporation's profitability ratio and net contribution percentage are below the
industry average.

Opportunities:
Demand for electric vehicles: Since there has been a lot of debate about global warming and
environmental issues, hybrid cars and green cars have suddenly become trendy.

Demand for smaller cars: With the rise in the number of working women and the increase in the average
family income, the number of customers for small cars has increased. Many households are now
prepared to invest in a second vehicle, raising the market for smaller vehicles.

Focus on emerging markets: Sales of cars in emerging markets such as China and India are expected to
expand. In the next decade, the number of cars that will be sold in this market is projected to multiply
by 10 to 15%, which is a big demand.

Government green drive also opens an incentive for both state and federal government contractors to
buy Mitsubishi Electric Corporation goods.

The organization has spent huge sums of money in the online platform over the past few years. New
online customers. Mitsubishi Electric Corporation has opened a new distribution channel for this
investment. The organization will exploit this potential in the next few years by better understanding its
customers and using big data analytics to serve their requirements.

The new tax policy will have a huge effect on the way business is conducted and can open up new
opportunities to improve its profitability for existing players such as Mitsubishi Electric Corporation.

After years of stagnation and a sluggish growth rate in the industry, the economic uptick and rise in
consumer spending is an opportunity for Mitsubishi Electric Corporation to draw new customers and
increase its market share.|

Threats:

Competition: The company is faced with tremendous competition pressure from Chevrolet, Nissan,
Toyota, Hyundai.GM, etc.

Rising costs: The company faces a lot of risks, such as fuel and material prices, from increasing costs.

Increasing pay levels, especially movements such as $15 an hour and rising prices in China, can lead to
serious pressure on Mitsubishi Electric Corporation's profitability.

Over the years, the company has produced various products, but these also respond to the growth of
other players. No consistent supply of innovative products. Secondly, the availability of new goods is not
normal, which results in high and low fluctuations over time in the amount of sales.

PORTER Analysis
Threat of New Entrants

New Industrial Goods & Services entrants bring creativity, new ways of doing things, and put pressure
on Mitsubishi Electric Corporation through a lower price policy, cost reduction, and customers' provision
of new value proposals. In order to safeguard its competitive advantage, Mitsubishi Electric Corporation
has to handle all these obstacles and build successful barriers.

How will Mitsubishi Electric Corporation handle the new entrants' threats?

By making new products and services creative. Not only do new products carry new customers to the
fold, but they also give old customers a reason to purchase products from Mitsubishi Electric
Corporation.

By developing economies of scale so that the fixed cost per unit can be reduced.

Capacity building and investing cash on research and development. New entrants are less likely to enter
a thriving sector where existing players such as Mitsubishi Electric Corporation constantly continue to
define the standards. This greatly decreases the window of exceptional profits for new companies, thus
discouraging new entrants in the sector.

Bargaining Power of Suppliers

Most of all, many manufacturers source their raw material from all the companies in the Industrial
Goods & Services sector. The margins Mitsubishi Electric Corporation can receive in the market can be
diminished by suppliers in a dominant position. Strong industrial suppliers use their bargaining leverage
to obtain higher rates from companies in the field of Industrial Products & Services. The net effect of
greater bargaining power for manufacturers is that it decreases Industrial Products & Services' overall
profitability.

How will Mitsubishi Electric Corporation fix the supplier's negotiating power?

By building multiple suppliers for an effective supply chain.

Using different products by playing with product designs such that if the costs of one raw material rise,
then the business will switch to another.

Production of dedicated suppliers whose business depends on the group.

One of the lessons Wal-Mart and Nike should teach Mitsubishi Electric Corporation is how these
companies have formed third-party manufacturers whose company depends solely on them, creating a
situation where, relative to Wal-Mart and Nike, these third-party manufacturers have considerably less
negotiating power.

Bargaining Power of Buyers

Often, buyers are a demanding by alot. By paying the lowest price possible, they want to buy the best
deals available. This has placed pressure on the long-term viability of Mitsubishi Electric Corporation.
The smaller and stronger the consumer base of Mitsubishi Electric Corporation is, the greater the
customers' negotiating power and the greater their willingness to demand improved discounts and
deals.

How the bargaining power of buyers can be discussed by Mitsubishi Electric Corporation

Through developing a broad client base. This, in two respects, would be beneficial. It will decrease the
buyers' bargaining power and provide the company with an opportunity to streamline the process of
sales and output.

By innovating new goods rapidly. Customers also search for discounts and incentives on existing goods,
so if Mitsubishi Electric Corporation continues to come up with new products, buyers' negotiating power
can be reduced.

The defection of Mitsubishi Electric Corporation's current customers to its rivals would also be reduced
by new products.

Threats of Substitute Products or Services

If a new product or service meets similar consumer expectations in various ways, the profitability of the
industry suffers. Services such as Dropbox and Google Drive, for example, are replacements for
hardware drives for storage. If it provides a value proposition that is uniquely different from current
industry offerings, the possibility of a replacement product or service is strong.

How the treatment of substitute goods / services can be handled by Mitsubishi Electric Corporation

By being service-oriented instead of merely product-oriented.

By knowing the consumer's core desires more than what the customer is purchasing.

By rising customers' switching costs.

Rivalry among the Existing Competitors

If the competition between the existing players in an industry is intense, then it will force down prices
and reduce the industry's overall profitability. In a very dynamic Industrial Products & Services market,
Mitsubishi Electric Corporation operates. This rivalry is taking a toll on the organization's overall long-
term profitability.

How Mitsubishi Electric Corporation can tackle intense competition among established rivals in the
industry of industrial goods & services

By making a sustainable distinction,

Via building scale so that it can better compete

Collaborating with rivals to expand the size of the industry instead of only vying for small markets.
PESTEL Analysis

POLITICAL

Political stability and the importance to the country's economy of the manufactured goods & services
market.

Chance of invasion by the military

Level of corruption - the level of control in the manufacturing sector in particular.

Bureaucracy and political intervention in the industrial goods & services sector.

Contract Compliance Legal System

Protective of intellectual property

Industrials-related trade law & tariffs

Favored partners in trading

Industrial products & services-related anti-trust laws

Pricing regulations-Are there any regulatory frameworks for industrial pricing

Taxation - rates of taxation and benefits

Wage law - minimum wage and overtime

Regulations for work week in

ECONOMIC

Form of economic system-what type of economic system there is and how stable it is in operating
countries.

Intervention of the government in the free market and associated sectors

Exchange rates & host-country currency stability.

Financial business efficiency: Does Mitsubishi Electric Corporation need to boost local market capital?

The standard of infrastructure in the industrial goods & services industry

The comparative advantages of the host nation and the country's industrial sector.

Employee expertise standard for the Manufactured Goods & Services sector.

Level of education inside the economy

In the market, labor costs and efficiency

Stage of Business Cycle (e.g. prosperity, recession, recovery)

SOCIAL

The population's demographics and ability level

The system of groups, hierarchy and control in society.

The degree of education and the quality of education in the industry of Mitsubishi Electric Corporation

The Society (gender roles, social conventions etc.)

The creative spirit of culture and its wider existence. Some cultures, although some do not, promote
entrepreneurship.

Attitudes - Attitudes (health, environmental consciousness, etc.)

Interests in Leisure

TECHNOLOGICAL

Latest technological advances by competitors from Mitsubishi Electric Corporation

The effect of technology on product offerings

Effect on the cost structure in the sector of manufactured products & services

Effect on the function of the supply chain in the manufacturing sector

Technological Diffusion Rate

ENVIRONMENTAL

The Climate

Climate Change

Laws governing emissions in the atmosphere

Industrial Products & Services sector controls on air and water emissions

Recycling of

Regulation of waste in the manufacturing sector

"Attitudes towards "green" goods or environmental products

Species Endangered and Threatened to inexistence

Attitudes towards renewable energy and its promotion

LEGAL

Anti-trust legislation in the Manufactured Goods & Services market and in the country in general.

Act on Discrimination

Copyright, patents / Rules on intellectual property

Security and e-commerce for customers

The Job Law

Law on health and welfare

Data Protection