PESTEL AND SWOT OF
YAMAHA MOTOR ,
About the Company
Yamaha India Motor Pvt. Ltd
YAMAHA Firstly established in the world in 1960 Entered India in
1982 First model was (RX 100) Was the first company to promote
maximum segment bike (RD-350),(DOUBLE ENGINE) in India.
Firstly manufactured 2-stroke motorcycles
Manufacturing Plants of the company in India are located at Faridabad
(Haryana) and Surajpur (Uttar Pradesh).
• Strong work force of 2000 Employees.
• Country wide network of 400 Dealers.
Vision and mission
We consistently deliver best-fit global IT services & solutions
to improve our client’s competitive advantage.
We are committed as a world-class team to provide total IT
solutions, creating value and surpassing our client’s
YAMAHA’S CHANGING STRATEGY
• 1) Yamaha has shifted its focus from the lower end segments to the
premium segment of bikes. It aims to provide its customers the full range
of its engineering marvels that make Yamaha the company that it is.
• 2) Yamaha has a very strong focus on the technical department, the result
of which can be seen with Yamaha comfortably leading the constructor’s
championship in the Superbikes racing with Valentino Rossi and Colin
Edwards as their riders.
• 3) Yamaha has aimed to become the No.1 in customer satisfaction and is
looking forward to providing the customer with an „experience‟ with its
• 4) The target market of India Yamaha Motors is the young and enthusiastic
• PESTLE Analysis is a simple, useful and widely-used tool that helps to understand the "big
picture" of Political, Economic, Socio-Cultural and Technological, Legal and Environmental
• Under the UPA rule most of the business from across all industries try and win
over as much political support. The core competitor’s viz. Yamaha and Honda have
been coming up with new higher models while the Bajaj industry has been
upgrading its bikes model by only varying the cc engine. It is believed that Mr.
Bajaj has used his political influence to raise the prices of the competitors‟ models,
thereby minimizing his loss of market share. Such political influences helps the
incumbents to gain favorable bargains from the government making it difficult for
new entrants to flourish thereby making Barriers to Entry high.
• Tightening of the interest rates by the RBI
• Makes it difficult for companies to arrange for funds for expansion but it effects
the new entrants even more, thus increasing barriers to entry.
• High per capita income results in higher disposable income with the buyers
thereby making them less price sensitive. This will decrease the bargaining power
• Deregulation of petrol has led to increase in prices and increase in commission to
petrol pump owners and will continue the spiral.
• This shall increase the cost of ownership of the vehicle thereby making them
demand for more fuel efficient vehicles. Since the choice of the vehicle can save
the buyer the running expenses, this shall make the Bargaining power of buyers
• As education level in the country increases, every customer keeps a basic
knowledge about the standard technology required. The public mentality
that a two-wheeler is just for day-to-day commuting is changing and
people are more and more moving towards premium bikes. The
expectations from buyers in this segment are very high since they look as
their bikes as a style statement and a reflection of their attitude towards
life. This increases the bargaining power of buyers as people start looking
for that exclusive brand image and differentiation. To target common
commuters, Yamaha Motor India launched 3 new bikes namely YBR
125,Yamaha SZ ,Yamaha SZ-Exit also launched sporty bikes like Yamaha
Fazer 250 to cater young Indian population,.
• Bikes with higher engine capacities have done commendably well on the Indian
• Bike styling and fuel efficiency has also seen major developments. The new
technologies including the mono shockers, back and front disc brakes, the
magnum wheels, DiASil Cylinder etc. are some things that many companies are
looking forward to.
• Yamaha has been able to involve many of these technology trends in its latest
bikes i.e. FZ & FZS. Yamaha also developed CF Aluminum Die Casting Technology
for mass production of Aluminum. This helped in reducing the weight of the parts.
• Demand for two wheelers is increasing and thereby overcrowding the roads.
Another problem is the adherence to emission norms because of the lack of
infrastructure for inspection. Because of Euro II, there will be a lot of pressure on
the two-wheeler industry to come up with greener technologies.
• This shall compel the companies to invest in innovation and R&D thereby reducing
their profits and making the industry unattractive for the new entrants thus
decreasing the threat of new entrants.
• Due to the steep fuel prices in India, the sector is driven by demands for fuel
efficient automobile systems. Hence, the regulations on fuel efficiency are less. As
discusses before, it increases the bargaining power of buyers.
• The vehicular emission regulations are taken care by Society of Indian Automobile
• Delhi High Court came out with a ruling that a comprehensive insurance policy for
vehicles which also covered the pillion rider on a two-wheeler should be offered
by all the insurance firms. This was accepted by all insurance firms after much
YAMAHA’S CORE COMPETENCIES
• Yamaha India’s R&D is considered to be the core competency for Yamaha because
they produce very powerful engines.
• The YZF R15 is the first India made motorbike to mount a liquid cooling system
for a better engine performance. Liquid cooling has the ability to keep down the
temperature. That's why it is used on race machines. Also, the liquid coolant in a
liquid-cooling system absorbs engine noise. That's why the engine is quieter and
the ride has a quality feeling.
• DiaSil cylinder facilitates cooling performance because aluminium dissipates heat 3
times faster than steel.
• The YZF-R15 and FZ16 engines have a single-axis balancer. This reduces engine
vibration, which in turn reduces vibration felt by the riders at the front and rear of
the seat, the handlebars and the footrest.
• All these technologies facilitate a better engine performance, good acceleration
capability, a good balance which will provide a good riding performance. A good
R&D is always a valuable for any company. The above technologies which Yamaha
develops are very rare. It is also very costly to imitate because setting new R&D
requires huge investment for the competitors.
• Back-up support from the parent company
• Highly experienced management
• Good R&D set up
• Premium technology
• Established Brand
• Prime location near raw material providers
• Below industry standard production capacity
• Poor Distribution channel
• Storage problems
• Lack of diversified product portfolio
• Increasing urbanization leads to growing premium segment
• First mover advantage in sports premium bikes (500cc+)
• Double digit growth in two wheeler geared industry
• Exports opportunities
• High competition in the market
• Rise in raw material products
• Increase in interest rates on finance
• Cars available in the same price range
(1) They should increase the awareness of there product by increasing Frequency of
Advertisements and Dealers Activity.
(2) After sale service is need to improved.
(3)Customer are also concerned about Product Price, so they should also think about
price of their product.
25% customers of the >=150 CC segment are waiting for 180 CC and 600
CC Model of Yamaha.
• In conclusion, the success of Yamaha is inseparable with the scientific business
strategy. Yamaha subdivides the whole market into several objective markets
according to the researches about the partialities of different individuals. And then
different types of motor bikes are put into the market aimed at attracting different
consumer groups. The competitive strategy of Yamaha is to improve the innovative
ability to win the competitive advantage. Strong technological innovation ability
makes Yamaha stand in the most forward position of motor bikes industry all the
time, and characterized this brand by a special vitality. It values the construction of
a brand, the orientation of its products and pays a lot of attention to technology
improvement. It increases the sales through sensitive advertisement, presentation to
the celebrities and large-scale entertainment.
• http://www.yamahamotorsports.com/sport/products/modelspecs/6/0/• http://www.motorcyclenews.com/MCN/bikereviews/searchresults/Bike-• http://www.yamaha-motor-india.com/about/profile
• "Intelligent Machinery - Company information". Yamaha Motor. Retrieved
• Alexander, Jeffrey W. (2009). Japan's Motorcycle Wars: An Industry History. UBC
Press. pp. 152–153. ISBN 978-0-7748-1454-6.