Competitive Strategies Case Study

Yamaha bikes in Asia: Regaining lost ground

Abstract:

Japan’s Yamaha Motor Company, one of the biggest motor bike companies in the world, faced numerous difficulties after the Asian financial crisis. As currencies, stock markets and asset values in many countries plummeted, there was a major decline in the earning and purchasing powers of consumers. Yamaha’s motor bike segment accounted for nearly 60% of its total sales but the company’s market share in the Asian nations declined rapidly from 18% in 1999 to 11% in 2003. Yamaha’s debts amounted to an astounding $2.3 billion in 2001. The demand for Yamaha bikes decreased and inventories piled up. To counter all these difficulties, Yamaha initiated various management plans, operational reforms and exclusive marketing strategies and from 2003 began to show tremendous improvement in its financial position. The case discusses these strategies in detail to show how Yamaha made a comeback in the Asian bike market. It also enables comparison with the performance of competitors like Honda and Suzuki.

The case provides tremendous scope for discussion on the effectiveness of Yamaha’s strategies. There is also adequate room for analysis on whether Yamaha can become a global leader amidst tough competition, in a scenario where the demand for bikes in developed market had flattened and tremendous growth was predicted in the Asian market.

Pedagogical Objectives:

• To discuss the effectiveness of Yamaha’s strategies by which it made a come back in Asian market
• To discuss the possibilities of Yamaha becoming a leader even though there was tough competition.

Keywords : Yamaha Motor Company; Asian Motor bikes market; Yamaha bikes; Management reforms; Marketing strategies; Operational reforms; Cost reduction; Competitive Strategies Case Study; Supply Chain Management; Yamaha’s NEXT 50; System Supplier(SyS); Technological innovation; Market restructuring; Yamaha Town Saigon; Moto Grand Prix race; Valentino Rossi

Contents : 
About Yamaha Motor Company
Yamaha’s Management Plans
The Operational Reforms and Transformation
Marketing strategies for Asia
Sales and Income of Yamaha motor bikes
Yamaha’s Management Plan