Honda Yamaha

Topics: New product development, Motorcycle, Marketing Pages: 3 (1021 words) Published: December 8, 2013
This case is about the competition between Honda and Yamaha to be the leader in the Japanese motorcycle market. The case study started with the introduction of the Japanese motorcycle market during the early 1950s. During the year, there were 50 competitors fighting for their position in the growing market of over 40% per annum. Tohatsu is the number one competitor (22% share), followed by Honda (20% market share) Tohatsu and Honda practiced different strategy to emerge as the leader of the motorcycle market. Tohatsu take a more conservative approach to grow at a slow and controlled. Instead, Honda adopted a more aggressive and successful approach to increase revenue at the same time reducing costs. Tohatsu market share fell to less than 4% while Honda rose to 44%. In February 1964, a major competitor Honda (Tohatsu) has filed for bankruptcy. Started with 50 competitors in the early 1950s and declined up to four (Honda, Yamaha, Suzuki, and Kawasaki) in 1965. Over the next 10 years, Japan has become more interested in buying luxury goods on durable goods and slowed Japanese motorcycle industry. Honda has taken the initiative to diversify into automobile manufacturing. At the end of the 60s, the Honda in the motorcycle industry Japan reached 65%. By 1975, Honda has earned more revenue from autos than motorcycles. When Honda focused on cars, Yamaha saw an opportunity to attack and conquer the motorcycle market. They began quietly increasing their motorcycle production capacity in Japan. The Honda production fell from 65% to 40% by 1981 and instead, Yamaha increased to 35% for the year. By the end of 1981, Yamaha and Honda have nearly equal shares in the market and Yamaha motorcycles began proclaiming himself Ichiban number one motorcycle manufacturer in the world President Hisao Koike openly challenged and heady past campaign launched Yamaha Honda. Koike President stated that the difference between the Honda and the company they put in the ability to supply, and...
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