Detailed SWOT Analysis of Mazda in the United States

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Mazda's performance in the United States. The analysis examines Mazda's product features, customer service reputation, and increasing sales as key strengths. Weaknesses include a weak distribution network, high pricing, and a poor customer retention rate. Opportunities are identified in focusing on customer retention and leveraging improved infrastructure. Threats include intense competition from rivals like Nissan and Toyota, potential sales declines, and increasing tax rates. The report includes a SWOT matrix summarizing the key findings and references relevant sources. The analysis aims to provide insights into Mazda's current market position and strategic challenges in the USA.

Running head: SWOT ANALYSIS OF MAZDA IN USA
SWOT Analysis of Mazda in USA
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SWOT ANALYSIS OF MAZDA IN USA
SWOT Analysis of Mazda in USA
Strengths
Features of the Product- This is one of the major strengths of Mazda Motors based in
USA wherein the Wankel Rotary engine is being utilised and this helps in making the usage
easy combined with high type of power as well.
Reputation in Providing Customer Services- This is the other strength in which
Mazda has gained huge reputation in serving the different customers in the market effectively
("Mazdausa.com", 2018).
Increase in the overall sales and Revenue in the Present Scenario- The global sales
of Mazda have increased. The sales of Mazda in North America have rose to 4.4 percentage
to more than 95000 vehicles in the year 2014 and the long-term experience in the automotive
field which was founded in the year 1920 (Juan, 2014).
Weaknesses
Weak Distribution Channel and Network- This is one of the weaknesses of Mazda in
USA market wherein this possessed the distribution channel is not strong in nature in USA
and this is affecting their sales of the different parts to the different customers (Juan, 2014).
High Price- Mazda tried to offer the different products with high price to the different
customers and this is not being affordable by the different individuals as they have moderate
kind of living in the organization as well. Furthermore, there is lack of sufficient popular
branding along with exercise related to marketing of the different products wherein this has
affected the growth.

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SWOT ANALYSIS OF MAZDA IN USA
Rate of Retention is Poor- The brand perception of Mazda is not as strong as the
other kinds of competitors in the market which is a major threat for them. Although there are
different customers who had chosen Mazda in comparison to the different other rivals.
Furthermore, in USA, the rate of the retention is 34% which is amongst lowest and this has
indicated that every two out of three customers of Mazda have purchased the car from the
other brands (Juan, 2014).
Opportunities
Focus on the Rate of Retention- This is one of the opportunities wherein different
customers across the world investigating in more than one car and they try to have one small
and one large car. Mazda tried to keep their presence in both segments and this will help them
in increasing their business effectively (Wang et al., 2017).
Better Type of Infrastructure- This is the other opportunity wherein the economies
which are emerging are mainly focusing on improved condition of roads and they try to
connect to bigger cities. This has helped in increasing the overall scope of bigger cars such as
SUVs in emerging kind of economies.
Threats
Competition- This is the first threat wherein there is huge competition in USA in the
car industry and the main rivals of the company is inclusive of Nissan and Toyota.
Decrease in the Forthcoming Sales- This is the other threat wherein the company
Mazda may face decrease in the overall sales as there is aggressive kind of competition.
There will be huge problem as there is disruption of the different innovative activities
(Meadows, 2017).

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SWOT ANALYSIS OF MAZDA IN USA
Increase in Rate of Tax- This is the other threat wherein the rate of tax is high in
USA market and the profit is declining as the result of this as well.
Table 1: SWOT Matrix
(Source: Meadows, 2017)
Strengths
Features of the product
Proper reputation in providing proper and efficient kind
of services in an effective manner
Increase in the overall revenue in the Present Scenario
Weaknesses
Weak kind of channels of distribution and channels
which is ineffective in nature
Rate of retention is poor and this affects the overall
pricing of the organization
Opportunities
Proper focus is required to be provided on
retention as this will be one of the effective
opportunities
Better kind of infrastructure is essential which is
effective in nature
Threats
The decrease in the sales is one of the
major disadvantage
There is huge competition in the market
SWOT

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SWOT ANALYSIS OF MAZDA IN USA
References
Juan, M. P. D. (2014). The Auto Industry in Mexico: A SWOT analysis.
Mazdausa.com. (2018). Retrieved from https://www.mazdausa.com/
Meadows, J. (2017). Vehicle Design: Aesthetic Principles in Transportation Design.
Routledge.
Wang, X., Li, C., Shang, J., Yang, C., Zhang, B., & Ke, X. (2017). Strategic Choices of
China’s New Energy Vehicle Industry: An Analysis Based on ANP and
SWOT. Energies, 10(4), 537.