Comprehensive S.W.O.T Analysis of Yamaha

Introduction

Yamaha Corporation is a Japanese multinational conglomerate that offers a diverse range of products and services. It is the world’s largest piano manufacturing company and one of the constituents of the Nikkei 225. 

Despite the fact that Yamaha Corporation is still a major shareholder, the former motorcycle division was founded in 1955 as Yamaha Motor Co., Ltd., which began as an affiliated company but later became independent.

In this case study, we’ll look at the SWOT Analysis of Yamaha to learn about their strengths, weaknesses, opportunities, and threats, which help them maintain their renowned status in the business.

About Yamaha

Yamaha Motor Co., Ltd. is a Japanese company that manufactures motorcycles, marine products such as boats and outboard motors, and other motorized products. 

The company was founded in 1955 after its separation from Yamaha Corporation and is headquartered in Iwata, Shizuoka, Japan. 

As of 2012, the company’s development, production, and marketing operations were carried out through 109 consolidated subsidiaries.

Yamaha Motor began manufacturing of its first product, the YA-1, in 1955, under the leadership of Genichi Kawakami, the company’s founder and first president. In its division, the 125cc motorcycle won the 3rd Mount Fuji Ascent Race.

In addition, the company engages in the import and sale of a variety of items, as well as the development of tourist enterprises and the management of leisure, recreational, and related services. Yamaha has the world’s second-biggest motorbike sales and the world’s largest water vehicle sales.

Before moving further to the SWOT Analysis of Yamaha. Let us get some more details about the company.

What’s new with Yamaha

Check out some current news about Yamaha:

Now that we’ve gone over the company’s fundamentals, let’s look at the SWOT analysis of Yamaha in the section below.

SWOT Analysis of Yamaha

A SWOT analysis is a method for determining a company’s strengths, weaknesses, opportunities, and threats. This SWOT analysis of Yamaha will help us paint a well-rounded picture of its operations so far. Let’s have a look.

1. Strengths of Yamaha

Wide Product Range: Motorcycles, scooters, motorized bicycles, boats, sailboats, personal watercraft, swimming pools, utility boats, fishing boats, outboard motors, 4-wheel ATVs, recreational off-road vehicles, go-kart engines, golf carts, multi-purpose engines, electrical generators, water pumps, snowmobiles, small snow throwers, automobile engines, surface mounters, intelligent machinery, industrial-use unmanned helicopters, electrical power units for wheelchairs and helmets are all part of the Yamaha Motors product line.

The Sound: When someone turns up the accelerator on a Yamaha motorcycle, it makes an incredible engine-tearing sound. Indeed, for motorcycle enthusiasts, it is a must-have bike.

Market Leader in Unique Segments: Yamaha’s snowmobiles, watercraft, and engines are considered world leaders, and Yamaha motors have a status equivalent to Honda motors in these niche markets, while Yamaha may lag behind in motorcycles.

Rigid construction: Yamaha products are regarded to be well-constructed and of excellent quality. Yamaha has a strong quality control and research and development team to ensure that the products that are sold in the market meet the performance levels that are expected of them.

Excellent Reputation: Yamaha is one of the 69 most well-regarded corporations in the world, according to Forbes, due to its outstanding success over time. It is ranked 658 in the world in terms of overall revenues, which total $14 billion.

Distribution: According to recent reports, Yamaha has one of the best distribution strategies, it is spread across the world with its headquarters located in Hamamatsu, Japan. In India, Yamaha has 3 state of the art manufacturing facilities at Surajpur Uttar Pradesh, Faridabad Haryana, and Kanchipuram in Tamil Nadu. It is a truly multinational company with a presence across all continents.

2. Weaknesses of Yamaha

Service: Because there are fewer distribution points, there are fewer service points as well. As a result, a consumer may consider the convenience of the service before purchasing this product, and the bike itself may not be purchased. 

In addition to sales distribution, service point distribution is also required. This is undoubtedly the weakest element in the SWOT analysis of Yamaha.

Marketing and Advertising: Because Yamaha is a BCG Matrix star, it needs to spend a lot of money on marketing and advertising. 

Yamaha does not use television as efficiently as other companies such as Hero or others, despite the fact that it is featured in Top publications and the newspaper on a regular basis. In terms of advertising, a company like Yamaha is expected to deliver a lot more.

3. Opportunities of Yamaha

Expansion: Expanding into new regions and developing markets can help a brand increase sales. This extension will not be confined to motorcycles; it can be applied to Yamaha’s engines as well as all of the company’s other products.

Electric Bikes: Yamaha is already working on electric bikes, and this is a product that will be available in the future. Bikes will not be far behind as more people switch to electric vehicles, and adoption has already begun in many areas. Because of their reduced carbon impact, ecologically minded regions have made electric bikes essential.

Low-Tier Segment Motorcycles: The majority of Yamaha’s products are premium, whereas the company should focus on the low and mid-tier categories. 

Volkswagen, for example, has demonstrated that a single corporation can appeal to all categories, even if it does so under several labels. Yamaha can focus on the low and mid-tier segments with the same strategy in order to boost its dwindling sales.

Rising Disposable Income and Emerging Markets: Yamaha should focus on countries where the GDP is increasing and there is increasing disposable income. In such markets, motorcycles will always come first, followed by vehicles. To enhance overall sales, Yamaha has to expand into these areas.

4. Threats to Yamaha

Rivalry: There is a lot of competition in this market. In most countries, there are national companies that have a substantial market share, and Yamaha requires either price penetration or good marketing to compete. However, competition has an impact on the company’s top and bottom lines at all times.

Lack of Promotion: As we can see, Yamaha sales are declining, due to a lack of advertising and good brand positioning. Yamaha’s brand recall is much lower than that of its competitors, which has harmed the brand’s brand equity, recall, and overall sales.

Indirect competition: Despite the fact that every family owns a motorbike, scooters are gradually but steadily replacing motorcycles. At the same time, instead of acquiring a single motorcycle, many families have purchased cars. This rise in indirect competition is also a factor in Yamaha’s declining sales and poses a danger to the brand.

This brings us to the end of the SWOT Analysis of Yamaha but before we conclude let us know about the top competitors of Yamaha and also an example of a campaign that brought backlash to the company from the viewers.

Top 5 Competitors of Yamaha

• Suzuki: The company is known for making low-maintenance cars for the Indian market. Maruti Suzuki India Limited. It manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs, and a variety of other small internal combustion engines.
• Bajaj : Founded by Jamnalal Bajaj . Bajaj Auto is a two and three-wheeler manufacturer in India. In terms of volumes, it is the 6th largest in the world while being the 2nd largest in India.
• TVS Motors: TVS Motors is India’s third-largest two-wheeler manufacturer, and the second largest exporter, with its exports to over 50 countries.
• Royal Enfield: An Indian automobile company that has been manufacturing classic automobiles like Bullet, Electra, and Thunderbird series since 1909.
• Ducati: An Italian motorcycle company established by the Ducati family, its motorcycles are owned by the world’s largest automotive manufacturer Volkswagen Group.

Failed Campaign /Backlash from Viewers:

The issue:  On 15th August 2017, A fake Yamaha Event Facebook page claimed to be giving away 18 x YZ250 and 13 x YZ450F to random 31 lucky winners. The post went viral.

Backlash faced by Yamaha: The fake account used a photo of the executive, the Yamaha brand name and logo, etc., without permission and sent friend/follow requests and messages to other accounts, urging conduct that could potentially cause self-detriment to their customers.

Action taken by the brand in this situation: Yamaha confirmed the incident of the scam overseas perpetrated by a fake Facebook account pretending to be a Yamaha Motor executive. They also requested the termination of the fake account.

Thanks to an excellent SWOT analysis, the brand has been able to stay at the top of its game, and with this, we have concluded the case study on the SWOT Analysis of Yamaha. Let us now wrap it up in the section below.

 

Conclusion

Yamaha is a well-known motorcycle manufacturer with a strong global presence. It does, however, sell a wide variety of other products in addition to motorcycles. Brand recognition and awareness must be prioritized. It also needs to concentrate on expanding its consumer base in India and China. Yamaha can achieve faster growth in these regions by forming regional relationships.

The SWOT analysis of Yamaha aided in the formulation of key recommendations, which include the establishment of a new vision and strategy, as well as adhering to current performance indicators.

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