3. Evolution:
• 1887-Yamaha's history began when its founder, Torakusu Yamaha, repaired a broken reed organ. Shortly
thereafter, he successfully completed the first reed organ to be built in Japan.
• 1897-Nippon Gakki Co., Ltd. (current Yamaha Corporation) is established with capital of 100,000 yen.
• 1955-Establishes Yamaha Motor Co., Ltd. (Splits off the motorcycle division).
• 1958-Begins production of sports equipment. Establishes first overseas subsidiary in Mexico.
• 1960-Establishes Yamaha International Corporation (current Yamaha Corporation of America).
• 1966-Yamaha Music Foundation is established. Expands into Europe with the founding of Yamaha Europa
GmbH, in West Germany.
• 1968-Issues shares at market price for the first time in Japan.
• 1987-Changes company name to Yamaha Corporation to mark the 100th years in business.
• 2007-Establishes music entertainment business holding company.
• 2012-Completes integration of Japanese wind instrument factories to Toyooka. 125th years in business
(October 12th).
• 2013-Establishes Yamaha Music Japan Co., Ltd.
4. Company Details
Founded October 12, 1887
Founder Torakusu Yamaha
CEO Hiroyuki Yanagi
HQ Hamamatsu, Shizuoka Prefecture, Japan
Revenue JPY 408.2 billion (2017)
Employees 28,112 (2017)
Subsidiaries Yamaha Motor Company
12. SWOT Analysis
Strengths:
Wide Product range –Yamaha Motors product range includes motorcycles, scooters,
motorized bicycles, boats, golf carts, multi-purpose engines, electrical generators, water
pumps, snowmobiles, etc.
Excellent reputation – As per Forbes, Yamaha is the 69 highest regarded companies in the
world because of its excellent performance over time. It is ranked 658 with regards to its
overall sales across the world which touches #14 billion.
Participation in sports – Yamaha has branded itself very well by having regular participation in
motorsports especially in motorcycle racing and car racing.
Star in the BCG Matrix – Yamaha may not have a high market share of the worldwide
automobile market but it is growing in a segment which has many competitors and yet the
potential of the segment is huge too. Thus, Yamaha is clearly a star in the BCG matrix when
considering the motorcycle industry.
13. Weaknesses:
Marketing & Advertising – Because Yamaha is a star in the BCG Matrix, it needs to have huge
expenditure where Marketing and Advertising is concerned. However, compared to other
brands like Hyundai or Hero or others, Yamaha does not use television as effectively though it
is present in Top magazines and regularly found in the newspaper.
Distribution – Another problem which is faced especially in developing countries where
Yamaha is present is that the distribution is not up to mark. Even in India, the distribution is
quite low and does not match with other prominent motorcycle brands like Honda, Bajaj, Hero
or others.
Service – Because the distribution points are less, the service points are less as well. Hence a
customer thinks of the service convenience before buying this product and might not
purchase the bike itself. Therefore along with sales distribution, service points distribution is
also needed. This is probably the weakest point in the SWOT analysis of Yamaha.
14. Opportunities:
Electric Bikes – Yamaha is already into Electric bikes and this is a product for the future. As more and
more people move onto electric cars, bikes will not be left far behind and already the adoption has
started in many regions. Regions which are environmentally conscious have made electric bikes
mandatory because of the low carbon footprint.
Low tier segment motorcycles – Most of Yamaha’s products are positioned as premium whereas
Yamaha should be looking at the low tier as well as mid-tier segments. Brands like Volkswagen in cars
have proved that a single company can cater to all segments even if it does the same with different
brands.
Distribution – Having more distribution point and service points are required by the brand. It is a
weakness which Yamaha has and covering that weakness can mean an opportunity for the brand.
Expansion – Expansion in International territories and developing markets can help the brand in boosting
sales. This expansion will not be limited to motorcycles but it can be applied to its engines and all the
other products in the arsenal of Yamaha.
15. Threats:
Lack of Advertising – As we can see that Yamaha sales are dropping which is due to a lack of
advertising and the proper positioning for the brand. Yamaha’s brand recall is quite lesser
than its other competitors and this has affected the brand equity, the recall and the overall sales
of the brand.
Competition – The competition in this segment is huge. There are national players in most
countries which have captured a large market share and to counter the competition, Yamaha
needs either price penetration or excellent marketing. But at all times, the competition effects
both – the top line and the bottom line of the company.
Indirect competition – Although all families have one motorcycle, it is observed that scooters
and slowly yet steadily replacing motorcycles. At the same time, many families have directly
purchased cars instead of purchasing a single motorcycle. This indirect competition rising
in demand is also a reason for the dropping sales of Yamaha and it is a threat to the brand.
