Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
STRATEGIC MANAGEMENT 
PESTEL AND SWOT OF 
YAMAHA MOTOR , 
INDIA 
Submitted by 
Samir Shah
About the Company 
Yamaha India Motor Pvt. Ltd 
YAMAHA Firstly established in the world in 1960 Entered India in 
1982 Fir...
Vision and mission 
• Vision 
We consistently deliver best-fit global IT services & solutions 
to improve our client’s com...
YAMAHA’S CHANGING STRATEGY 
• 1) Yamaha has shifted its focus from the lower end segments to the 
premium segment of bikes...
PESTLE 
• PESTLE Analysis is a simple, useful and widely-used tool that helps to understand the "big 
picture" of Politica...
CONT’D….. 
• Economic 
• Tightening of the interest rates by the RBI 
• Makes it difficult for companies to arrange for fu...
• Social 
• As education level in the country increases, every customer keeps a basic 
knowledge about the standard techno...
CONT’D… 
• Technological 
• Bikes with higher engine capacities have done commendably well on the Indian 
roads. 
• Bike s...
CONT’D…. 
• LEGAL 
• Due to the steep fuel prices in India, the sector is driven by demands for fuel 
efficient automobile...
YAMAHA’S CORE COMPETENCIES 
• Yamaha India’s R&D is considered to be the core competency for Yamaha because 
they produce ...
SWOT 
• INTERNAL 
• STRENGTHS 
• Back-up support from the parent company 
• Highly experienced management 
• Good R&D set ...
CONT’D….. 
• EXTERNAL 
• OPPORTUNITIES 
• Increasing urbanization leads to growing premium segment 
• First mover advantag...
Suggestions 
(1) They should increase the awareness of there product by increasing Frequency of 
Advertisements and Dealer...
Conclusion 
• In conclusion, the success of Yamaha is inseparable with the scientific business 
strategy. Yamaha subdivide...
References 
• http://www.yamahamotorsports.com/sport/products/modelspecs/6/0/• http://www.motorcyclenews.com/MCN/bikerevie...
Thank you
Upcoming SlideShare
Loading in …5
×

Yamaha pestle and swot

3,250 views

Published on

yamaha india pestle and swot analysis

Published in: Education
  • Be the first to comment

Yamaha pestle and swot

  1. 1. STRATEGIC MANAGEMENT PESTEL AND SWOT OF YAMAHA MOTOR , INDIA Submitted by Samir Shah
  2. 2. 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. •(source- www.yamaha.co.in)
  3. 3. Vision and mission • Vision We consistently deliver best-fit global IT services & solutions to improve our client’s competitive advantage. Mission We are committed as a world-class team to provide total IT solutions, creating value and surpassing our client’s expectations.
  4. 4. 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 products. • 4) The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr.
  5. 5. PESTLE • 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 aspects. • Political • 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.
  6. 6. CONT’D….. • Economic • 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 of buyers. • 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 high
  7. 7. • Social • 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,.
  8. 8. CONT’D… • Technological • Bikes with higher engine capacities have done commendably well on the Indian roads. • 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. • Environmental • 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.
  9. 9. CONT’D…. • LEGAL • 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 Manufacturers (SIAM). • 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 deliberation • (www.scribd.com)
  10. 10. 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.
  11. 11. SWOT • INTERNAL • STRENGTHS • 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 • WEAKNESSES • Below industry standard production capacity • Poor Distribution channel • Storage problems • Lack of diversified product portfolio
  12. 12. CONT’D….. • EXTERNAL • OPPORTUNITIES • 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 • • THREATS • High competition in the market • Rise in raw material products • Increase in interest rates on finance • Cars available in the same price range
  13. 13. Suggestions (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.
  14. 14. Conclusion • 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.
  15. 15. References • 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 • http://www.yamaha-motor.com/outboard/products/lifestylehome/home.aspx • "Intelligent Machinery - Company information". Yamaha Motor. Retrieved 2011-12-27. • Alexander, Jeffrey W. (2009). Japan's Motorcycle Wars: An Industry History. UBC Press. pp. 152–153. ISBN 978-0-7748-1454-6.
  16. 16. Thank you

×