STRATEGIC ANALYSIS OF YAMAHA MOTORS

Strategic Analysis of Yamaha Motors

Table of Contents

Introduction1

Financial Information1

Business Unit2

SBU and Geographic Region2

External Analysis3

PESTEL Analysis of Motorcycle Industry3

Purpose3

Analysis4

Summary in light of opportunities and threats6

Porter's Five Forces Analysis6

Purpose6

Limitation of the Framework7

Analysis of the Motorcycle Industry7

Limiting Factors9

Alternative external analysis framework9

The Value Chain10

Purpose10

Limitations of the Framework10

Adding Activity10

Analysis11

RBV Analysis11

Theoretical information11

Analysis in relation to Yamaha Motors11

VRIO Analysis12

Theoretical information13

Analysis in relation to Yamaha Motors13

Dynamic Capabilities13

Theoretical information13

Analysis in relation to Yamaha Motors13

Alternative Internal Analysis Framework14

Yamaha's Core competencies and Competitive Strategy14

Overview by strengths and weaknesses of SWOT15

SWOT Analysis15

Key Issues16

Critical Evaluation of the Current Strategy of Yamaha motors and Recommendations16

Problem solution structure based on Ansoff matrix16

Alternative strategy keeping in view the Ansoff Matrix17

The limitations17

Change Management in Yamaha Motors17

Links between Strategic Analysis and Leadership18

Conclusion18

References19

Appendix21

Identification of Core Competencies of Yamaha That Lead To Competitive Advantage21

Financial Information22

Major products in each industry segment27

Strategic Analysis of Yamaha Motors

Introduction

This paper focuses on Strategic Analysis of Yamaha Motors. It includes the structure of the company SBU and geographic region. Yamaha Motor is a Japan-based manufacturing company which manufactures and sells motorized products. It operates about 60 factories in 35 countries globally. The company operates through its subsidiaries throughout Japan, Europe, North America, and Asia. Some of the main products of Yamaha motors are:

All road categories including the all sport and cruiser Models.

Scooters including over 50 cc and under 50 cc models.

ATV categories

Marine Outboard categories

Golf categories

Wave runner categories

Power categories

All Kart categories

The company provides sports bikes, trail bikes, road racers, motocross and others. If looking at the competitors, Honda is the major player which is a challenge for Yamaha currently in Japan (DiSabatino, 2010, 15).

Financial Information

Yamaha motors Japan motorcycle segment showed a positive cash flow of 10.9 in December 2010. The over all industry sales remained at 12.2 percentage, which is quite successful as compared to the year 2008 (-28%). In the year 2010 the overall segments sales reached the figure of 1,294,131, which is significantly better than the overseas operations. The sales of other product segments closed at 37% as compared to the meager growth in other geographical regions.

Note: See Appendices

Business Unit

The company's subsidiaries include Yamaha Motorcycle Sales Japan, Yamaha Marine, Yamaha Motor Europe, Yamaha Motor Powered Products, Yamaha Indonesia Motor Manufacturing, Yamaha Motor Electronics, Thai Yamaha Motor, Yamaha Motor Corporation, U.S.A., Yamaha Motor Vietnam, Yamaha Motor Taiwan, and others. In developed nations such as Japan, motorcycle sales for fiscal 2009 decreased from fiscal 2008 largely due to reduced demand amid the recession (Horak, 2007, pp.30).

SBU and Geographic Region

In this report, we will focus on Yamaha motorcycle as a business unit and the geographic region is Japan. The year of the analysis is 2010.The Japanese motorcycle manufacturing market experienced accelerating decline in the last few years. In comparison, the Chinese and Indian industries grew with CAGRs of 7.3% and 12.5% respectively, over the same period, to reach respective values of $13,257.3 million and $9,712.1 million in 2010 (Hakravarthy and Lorange, 2001, pp.105). The industry's volume is expected to rise to 831.7 thousand units by the end of 2015, representing a CAGR of ...