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Yamaha's Global Expansion Strategy

Yamaha is a Japanese motorcycle company located in Iwata, Shizuoka. It was founded in 1955 and produces motorcycles, boats, outboard motors, and automobile engines. Yamaha has expanded globally using greenfield investments, joint ventures, and acquisitions. It operates 115 subsidiaries and 28 associates worldwide focused on localizing its products, profits, production, and management across regions including the Americas, Asia/Oceania, and Europe. Yamaha aims to exceed customer expectations, foster employee self-esteem, and fulfill social responsibilities globally.

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58 views11 pages

Yamaha's Global Expansion Strategy

Yamaha is a Japanese motorcycle company located in Iwata, Shizuoka. It was founded in 1955 and produces motorcycles, boats, outboard motors, and automobile engines. Yamaha has expanded globally using greenfield investments, joint ventures, and acquisitions. It operates 115 subsidiaries and 28 associates worldwide focused on localizing its products, profits, production, and management across regions including the Americas, Asia/Oceania, and Europe. Yamaha aims to exceed customer expectations, foster employee self-esteem, and fulfill social responsibilities globally.

Uploaded by

GAUTHAM PRASAD
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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YAMAHA MOTORS

Ashish Gaur
Rohit Kumar
Shubham Suman
Prayash Chaudhary
Torakusu Yamaha (Yamaha means "mountain leaf").
Japanese motorized vehicle-producing company, located in IWATA, SHIZUOKA
CEO Genichi Kawakami, on July 1, 1955.
Research into metal alloys for use in acoustic pianos.
Motorcycles, all-terrain vehicles, boats, marine engines including outboards,
automobile engines, personal watercraft and snowmobiles.

Growth Story
Govt. policies facilitating growth
 Increase in purchasing power in rural sector
 Saturation in the developed nations making India the 2nd largest market
 Growing working population fast paced urbanisation
 Changing perception of consumer bike as style icons

Competitors
Domestic companies :- Hero & Bajaj.
Foreign companies :- Honda & Kawasaki
 Green field investment

The Americas Asia / Oceania Europe


USA, Canada, India, China, Belgium, Denmark,
Mexico, Brazil. Thailand, Malaysia. France, Germany.

 Joint ventures

 Acquisitions

115 subsidiaries & 28 associates


Factor Conditions :- Less Related & Supported
Productivity Industries :- Auto Component
Industry
Demand Conditions :- Low
Demand Firm Strategy & Rivarly :-
Localisation Of 4 P’s
Political Environment
The organization’s activity is in the framework of the regulations
in the area it operates.

Economic Environment
The slow economic growth in Indonesia and the increasing number of
people keep cheap workers available to work in the factories.

Technological Environment
In manufacturing the motorcycles, there are five steps such as welding,
painting, furnishing, assembling, and machining.
Joint venture with ESCORTS in INDIA :-
It enters into a 50:50 joint venture with Escorts in 1996.
Joint venture with LINHAI in CHINA :-
Yamaha Motor has reached a 3-way agreement with the Chinese
motorcycle engine maker Jiangsu Linhai Power Machinery Group
Corporation .

Acquisition of NEXO SA in FRANCE :-


Yamaha Corporation in the strategic acquisition of the majority
stake held by the founders of Nexo SA, a leading French
manufacturer and seller of professional acoustic speaker systems
 Language

 Individualism v/s collectivism

 Co-operation

 Uncertainty Avoidance

 Masculinity/Femininity

 Conflict Resolution
Multidomestic Strategy :-
It is a strategy by which companies try to achieve maximum local
responsiveness by customizing both their product offering and marketing
strategy to match different national conditions.

Yamaha’s Overseas Strategy: The four localizations

1.Localization of Products

2. Localization of Profits

3. Localization of Production

4. Localization of Management
1. Creating value that surpasses customer
expectations

2. Establishing a corporate environment that


fosters self-esteem

3. Fulfilling social responsibilities globally


Yamaha is a Japanese co. Part of Yamaha corporation.

In 1954 production of the first motorcycles began, a simple 125cc single-cylinder two-
stroke

Yamaha accepted the green field technique to globalise all over the world mainly in
the region of Americas, Asia/ Oceania & Europe.

In 1973 production topped one million (1,000,000) motorcycles per year for the first
time, leaving Suzuki way behind at 642,000 and catching up on Honda's 1,836,000

In coming futures Yamaha is planning to launch its 1st scooter/moped in INDIA called
as Ray.

The company plans to expand its production capacity to 1 million units in 2012.

A/c to the India Yamaha Motor National Business Head Roy Kurian report Yamaha
is planning to invest Rs 800 crores in 2012-13 on production enhancement.

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