Yamaha is a motor company that strives to deliver to customers the products that not only satisfies but exceeds their needs. It is a Japan-based leading automobile company, which manufactures two-wheeler vehicles such as motorcycles and scooters. For many years, Yamaha has been one of the most popular automobile brands in the market because it provides quality products for middle-class customers who want stylish motorcycles with good mileage. This essay discusses the strategic management issues in Yamaha Corporation, which include SWOT analysis, competitive advantage, target market competitors, and organizational strategy.
The company's mission statement includes "offering new excitement and more fulfilling life for people all over the world" (Yamaha Motor Corporation, 2018). The company's vision is to provide customers with products that exceed their expectations (Pinna, 2018).
Yamaha is a well-known and leading automobile brand in the market because it has produced excellent and quality automobile products. According to Haseeb (2015) highlights some of the strengths of Yamaha as great advertising and distribution, talented and professional workforce, manufacturing quality products. Yamaha has over 39, 000 qualified, trained, skilled and professional employees, who help in improving the company's performance (Haseeb, 2015). Further, the company produces quality products that exceed the customers' expectations. For instance, it produces scooters from 50 to 500cc and motorcycles that range from 50 to 1900cc (Haseeb, 2015).
One of the critical weaknesses of Yamaha is that its products are costly. Haseeb (2015) explains that the motorcycles and scooters manufactured by Yamaha are very expensive that only the middle and high class can afford. Again, the spare parts and services for its products are not easy to purchase or obtain.
Yamaha has numerous opportunities in the automobile industry. For example, the use of motorcycles is increasing, which means that the company is expanding in the market (Haseeb, 2015). In this case, Yamaha should look for new markets in the areas where the demand for motorcycles is increasing. Also, with the improvement of technology in the automobile industry, Yamaha has an opportunity in the electric bikes segment. Even though it has already ventured into the electric bikes, but it should focus on the new models of the motorcycles, which can increase its attractiveness in the market.
The greatest threat for Yamaha is the many leading and popular brands in the market. Many players in the market pose a threat to Yamaha due to their new models of motorcycles and low prices.
Yamaha needs to be concerned with the economic, social trends and legal issues that can affect their planning as they expand the businesses to new markets. Haseeb (2015) explains that motorcycles of the competitors are heavy and have reliable engines, which can provide excellent service regarding mileage to the customers. Even though the use of motorcycles is increasing, customers like to get bikes with strong engines that can serve their purpose. This could be a social trend issue that Yamaha needs to consider. Secondly, as Haseeb (2015) explains, every brand has to depend on the government policies and the prices of the fuels. Therefore, this could be an economical and legislation issue for the company, especially as it tries to venture into the markets of the developing countries.
For Yamaha, competition in the market is based on the differentiation strategy. Yamaha's primary strategy is built on the creation of value, which differentiates its products from other brands in the market. Most of the products from Yamaha Corporation are very expensive, which gives the companies with low-cost strategies more advantage in the market (Haseeb, 2015). With the new models of electric bikes about to venture into the market, Yamaha expects to expand its commercialization (Yamaha Motors Corporation, 2018).
Yamaha's products are quality and durable. Haseeb (2015) explains that Yamaha is one of the most popular motorcycle brands in the automobile industry that produces quality products to the middle-class customers. According to Haseeb (2015), the company targets the middle-class people who want to get stylish bikes with good mileage.
Yamaha has a sustainable competitive advantage through its R&D positions. Its R&D position is one of the most critical facets of Yamaha's operations, which has provided the company with the solid foundation in the market (Pinna, 2018). Yamaha has tried to refine its technologies from different perspectives, manufacturing methods, and structural designs to provide customers with excitement and unforgettable experience. Furthermore, the company has been working in the past 50 years trying to develop high-quality products that could meld acoustic and digital technologies. In 2015, Yamaha introduced the most advanced motorcycle, YZR R1, which has transformed the sportbike across the world (Pinna, 2018). Yamaha has produced other products that have enhanced its competitive advantage in the market. For example, Yamaha YZR M1 is another model that demonstrates its competitive advantage. With the current rate of technological development, Yamaha's approach to transforming the sportbike world through its new motorcycle models is sustainable.
The three top competitors of Yamaha Corporation include Suzuki Motor Corporation, Honda Motors Co., Ltd, and Kawasaki Heavy Industries, Ltd (D & B Hoovers, 2018). Apart from the fact that they are strong, these companies pose a tremendous competitive threat to Yamaha because they are also financially good international brands in the automobile industry (Haseeb, 2015).
In conclusion, this essay has analyzed the strategic management issues in Yamaha Corporation. Despite being one of the most popular and leader in the automobile market, Yamaha faces stiff competition from the three top competitors discussed in the paper. Based on this analysis, Yamaha's strategy of using the latest designs and integration of technology in the manufacturing of motorcycles will not only attract the attention of customers but also enhances its competitive advantage in the market.
D & B Hoovers. (2018). "Yamaha Motor Co., Ltd." Hoovers. Retrieved from http://www.hoovers.com/company-information/cs/company-profile.yamaha_motor_co_ltd.a45a0cf6e2118741.html#competitors
Haseeb. (November 19, 2015). "SWOT Analysis of Yamaha." MarketingDawn. Retrieved from http://marketingdawn.com/swot-analysis-of-yamaha/
Pinna, D. (February 8, 2015). "Yamaha Motor Company: Strategic Planning for Competitive Advantage." YamahaRevsYourheart. Retrieved from http://yamaharevsyourheart.blogspot.com/2015/02/ch-2-strategic-planning-for-competitive.html
Yamaha Motor Corporation. (2018). Corporate Philosophy." YamahaRevsyourheart. Retrieved from https://global.yamaha-motor.com/about/philosophy/index.html
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