Diversification Strategies Case Study

Yamaha Motor Corporation's Diversification Strategies

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Abstract:
From the 1960s, Yamaha Motor Corporation started diversifying into other businesses to reduce the company's dependence on its motorcycle business. The company's management was confident that the diversification strategies being followed would be beneficial to the company in the long run. Several analysts were also of the opinion that the company was correct in diversifying into other businesses. But others were sceptical about Yamaha's diversification strategies and opined that the company should have stuck to its core business of manufacturing motorcycles.

Pedagogical Objectives:

• To understand the evolution of Yamaha over the years and analyse the rationale behind the company's diversification into businesses other than motorcycles
• To discuss whether Yamaha was right in diversifying into other businesses.

Keywords : Yamaha Motor Corporation; Diversification strategies; Asian financial crisis; Motorcycle industry; Diversification Strategies Case Study; Outboard industry; Automobile engines; Power products; Aeronautical operations; Intelligent machinery technology; Biotechnology; Semi-conductor cycle