You are on page 1of 26

2014

Strategic Management Project Report
Submitted to: Prof. Jenny Sabu

Submitted By: Shashank jambhulkar Prn : 12088 (Marketing) Batch : 2012-14

Research Project Report On “Strategic Management Project Report” SUBMITTED TO MIT PUNE’s MIT SCHOOL OF TELECOM MANAGEMENT BY

STUDENT NAME:- Shashank Jambhulkar PRN: -12088 BATCH: - 2012-2014

IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT PGDM 2012-2014 MIT PUNE’s MIT SCHOOL OF TELECOM MANAGEMENT MITSOT, PUNE

12088 Date: . Name of the student: .DECLARATION I Mr. Pune . Shashank Jambhulkar hereby declare that this Research Project Report on “Strategic Management Project Report” is the record of authentic work carried out by me during the period from last semester and has not been submitted earlier to any university or institute for the award of any degree/diploma etc.MITSOT.17/02/2014 PLACE: .Shashank jambhulkar PRN: .

Jenny Sabu MITSOT Dr. This RPT report is the record of authentic work carried out by him/ her during the last semester.CERTIFICATE This is to certify that Mr. Prof. He / She have worked under my guidance. Shashank Jambhulkar of MIT Pune’s. Milind Pande Project Director MITSOT . MIT School Of Telecom Management (MITSOT) has successfully completed the RPT work titled “Strategic Management Project Report” in partial fulfillment of requirement for the completion of PGDM course as prescribed by the MITSOT.

MilindPande and mentor Mrs.ACKNOWLEDGEMENT Writing is a solitary task. And I wish to express my appreciation all those help has been most valuable. and many others too. To all these truly outstanding people. Jenny sabu providing me the necessary guidance and facility required for completion of this project and for being an effective source of inspiration. However turning of millions of bytes of information requires an army of talented folks. I am indeed grateful to my Director Mr. Your’sFaithfuly Shashank jambhulkar . I am thankful to the library for providing the necessary magazines and journals without which the completion of this project would not be possible. my warm personal regard. I have been fortunate enough to be assisted by many talented and caring people.

Two Wheeler Geared Bikes INDUSTRY ATTRACTIVENESS COMPETITIOR‟S ANALYSIS INTERNAL ENVIRONMENT ANALYSIS VALUE CHAIN ANALYSIS YAMAHA INDIA‟S RESOURCES TANGIBLE RESOURCES INTANGIBLE RESOURCES YAMAHA INDIA‟S CAPABILITIES YAMAHA‟S CORE COMPETENCIES SWOT ANALYSIS RECOMMENDATIONS REFERENCES ANNEXURE-A Detailed competitor Analysis YAMAHA IN PREMIUM SEGMENT HERO HONDA MOTORS LTD.Table of Contents EXECUTIVE SUMMARY INTRODUCTION OUR FOCUS YAMAHA INDIA.A BACKGROUND AND NEED FOR CHANGE IN STRATEGY YAMAHA‟S CHANGING STRATEGY EXTERNAL ENVIRONMENTAL ANALYSIS INDUSTRY ANALYSIS . HONDA MOTORCYCLES & SCOOTERS INDIA PRIVATE LIMITED Annexure B – Achievements of Premium Segment Bikes of Yamaha .

operational inefficiencies and not following aggressive selling. In this research we have used various strategic tools and frameworks to support our analysis. As compared to their competitors. They ran in losses for almost for a decade. They should utilize their premium technology by giving focus to introduce new range of products to satisfy the consumer needs. we are analyzing one of the new strategies by India Yamaha Motors Private Limited to enter into the premium segment bikes in India. stiff competition. their capabilities are not per standard in the current scenario. Parent company Yamaha Motor Corporation (Japan) has decided to utilize its deep R&D for the Indian markets. the government ban on two stroke bikes was the biggest breakthrough in Yamaha’s success. But.EXECUTIVE SUMMARY Yamaha enjoyed a great start in India with its models RX100 and RX135. took the help from various web and literary resources which is given in references section. Yamaha should focus to increase its production capacities. To improve. Our research will be focusing to analyze the industry. Through this research. Yamaha’s main problems were identified as a late entry in the market. . Premium segment industry is unattractive for the new entrants due to need of huge initial capital investment. They should also give importance to market the product well. parent company’s financial and technological support facilitates company to show their core competencies to the customers. rise in per capita income of households. However. provides an opportunity for the existing players to capture the market. The industry is also affecting by other factors like availability of cars in the same price range. westernization etc. But. to study internal and external forces affecting the decision of the company.

Premium bikes segment consists of the motorbikes with an engine power of 150-250cc. These bikes come under price range between Rs. sales of which were growing y-o-y at 5% even as the total motorcycle sales in 2007-08 plunged by 12 per cent in the first ten months of the FY in 2007-08. financial and marketing fronts. It forayed into the market with Yamaha RX100 and RX135 in the midnineties.INTRODUCTION India is the second largest manufacturer of motorbikes in the world after China. four different variants of motorbikes are available in the market with the power engines of 100cc. 2. In India. The factors for premium segment bikes in India can be the increasing income scales of the households. YAMAHA INDIA. With strong players like Hero Honda. 40-45% of the motor bikes demand drives from urban India. They adopted a turnaround strategy of involving structural. Everything was going well until a government regulation came into force banning 2stroke bikes and compelled Yamaha to pull out its bikes from the market. huge margins in the segment have also led major players in the industry to focus on premium bikes. The motorbikes market is considered as a big bull of Indian automobiles industry. there is a big scope for this industry to explore. only 31 out of every 1000 persons own motor bikes in India. 125cc. 00. These companies provide various variants of motorbikes to satisfy all the types of consumers in the country. Yamaha India suffered an operating loss of Rs. attractive looks and comforts offered etc. The company on its part planned to cash in on the market sentiment of increasing tilt towards premium bikes. It is the second largest manufacturer of motorbikes in the world after Honda. 300000-Rs. 336 crores. 500000). Still. Premium bike sales have in the meanwhile leaped up to over 15 per cent of total sales during 07-08. The basic target of every Motor Cycles company is the youth and middle-income households (RS. Bajaj Auto.000. inefficient operations strategy. There has also been an increase in distinctive and customized products. Later it introduced many new models but their success rate was poor despite the fact that the engines of theses bikes were among the best in the business. Figure 3 Annexure A].000 to Rs. a Japanese company entered in India in 1980s through the acquisition of Escorts Motors Private Limited in 1999. the share of motor bikes in the two-wheeler industry has risen to 80% from 30% in the last decade and a half [Refer. . In 2007-08. Besides growing demand. In India. In India.A BACKGROUND AND NEED FOR CHANGE IN STRATEGY Yamaha Motors. 150-250cc and above 250cc bike. Yamaha India etc aim to provide efficiency and comfort ability without compromising on the fun and thrill of riding. shortage of imported raw materials from Japan etc. TVS. OUR FOCUS The premium bikes segment has emerged as the biggest growth segment in India because economy is booming and people moving up the salary bracket. 50. during which annual period sales of motorbikes in the country have grown by a multiple of 13. Several reasons why these models were not that successful were probably because of the choice of marketing.

Yamaha has been following the cost control strategy by focusing on the low –end 100cc bikes like Crux and Alba. 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. In lieu of the growing Indian economy and the need for differentiator products. The 100cc bikes are supplied only if there is a pull. it has seen an opportunity and attempted to leverage on it. it realized the Indian market is viable for premium segment bikes and has shifted its focus from the lower end segments to the high-premium segment. For example the company will be launching its new superbike in the 1000cc segment.1 in customer satisfaction and is looking forward to providing the customer with an „experience‟ with its products.Yamaha’s niche in Japan is in racing bikes (high-premium segment) due to its high engine capacity which is its core competency. It aims to provide its customers the full range of its engineering marvels that make Yamaha the company that it is. Its aim is to provide customers the full range of its engineering marvel. SZ and Fazer. ergonomics for long distance travelling etc. it is also optimistic about the FZ-16 series it has launched in the mid-market segment (150 cc) bikes. After launching models in premium segment like FZ1. we can see that the aim is to provide niche products for the diverse customer segments. superior design. These young guns are very conscious of the style quotient and look forward to their ride being a personality statement. but the company has clearly indicated that it sees its future in the mid-market and premium segments. Yamaha revamped its strategy and shifted its focus to premium bikes. 2) Yamaha has a very strong focus on the technical department. Olds who are willing to try taking the not so much treaded path of buying the „sports bike‟ rather than a „utility two wheeler‟. With the rising disposable income in India. 5) With the increasing dispensable income in India and growing middle and upper middle class segment Yamaha is sure to find many prospective customers. It will provide more value to the customer in terms of attributes like great technology. This is its market differentiation strategy. This kept it market share to below 5%. Apart from this. From Cost Control to Market Differentiation For a long time till 2007-08. 4) The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr. So hence. The company is not just willing to limit itself to just prestige pricing. After sufficient market research. . YAMAHA’S CHANGING STRATEGY 1) Yamaha has shifted its focus from the lower end segments to the premium segment of bikes. Yamaha India is able to develop a brand image in front of their consumers.

High Growth Economy with an expected GDP of 8. It is believed that Mr. Bajaj has used his political influence to raise the prices of the competitors‟ models. 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. watercrafts. . It has come up with several innovations like improving fuel efficiency of the bikes. music instruments. The core competitor’s viz. scooters. It aims at providing a diversified product range to satisfy a wide variety of customer preferences. racing karts etc. thereby minimizing his loss of market share. outboard motors. sail boats. 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.Yamaha can be described as a prospector (especially after the year 2007) as it has been constantly trying to explore new markets and opportunities. Yamaha’s Breadth Strategy Yamaha has globally forayed into an extensive range of products like motorcycles.5% High per capita income results in higher disposable income with the buyers thereby making them less price sensitive. reducing the size of the engines and introducing light weight and compact metals for its bikes. thus increasing barriers to entry. boats. EXTERNAL ENVIRONMENTAL ANALYSIS Political Environment Under the UPA rule most of the business from across all industries try and win over as much political support. Economic Environment 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. This will decrease the bargaining power of buyers. It provides bikes for almost every market segment ranging from the 100cc Crux to the 1000cc FZ1. introducing environment friendly engines.

the magnum wheels. this shall make the Bargaining power of buyers high Socio Cultural Environment As education level in the country increases. Yamaha Motor India launched 3 new bikes namely YBR 125.e. 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. back and front disc brakes. Also with increasing globalization. This decreases the bargaining power of buyers as the product becomes more differentiated and companies woo new customers with innovative products.Yamaha SZ . This helped in reducing the weight of the parts. It also increases the competition in the industry thereby increasing the industry rivalry.Increasing inflow of foreign capital in the country Permission of FDI in the country has attracted many foreign big giants like Harley Davidson to enter into the Indian market.Yamaha SZ-Exit also launched sporty bikes like Yamaha Fazer 250 to cater young Indian population Technological Environment Bikes with higher engine capacities have done commendably well on the Indian roads. FZ & FZS. As these companies are already very competent with high technologies and financial resources. Yamaha also developed CF Aluminum Die Casting Technology for mass production of Aluminum. Since the choice of the vehicle can save the buyer the running expenses. Yamaha has been able to involve many of these technology trends in its latest bikes i. Combined Goods and Services Tax is expected by 2011 which is expected to remove the cascading effect caused due to multiplicity of taxes. This increases the bargaining power of buyers as people start looking for that exclusive brand image and differentiation. Legal Environment Due to the steep fuel prices in India. Bike styling and fuel efficiency has also seen major developments. Hence. India is getting westernized more and more by the day. every customer keeps a basic knowledge about the standard technology required. it increases the bargaining power of buyers. 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 regulations on fuel efficiency are less. the entry barrier will not be any issue and thus will increase the threat of competitors in the industry. the sector is driven by demands for fuel efficient automobile systems. To target common commuters. DiASil Cylinder etc. are some things that many companies are looking forward to. 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. The new technologies including the mono shockers. As discusses before. The vehicular emission regulations are taken care by Society of Indian Automobile Manufacturers (SIAM) .

. is some of the bikes which are already launched in India.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. E-bike India. However. for long term sustainability in India every player will have to enter in the market in the premium segment range.Two Wheeler Geared Bikes THREAT OF SUBSTITUTES Kinetic Mahindra Deal – Gearless bikes: M&M. Yamaha improved its production and air conditioning equipment to reduce greenhouse gas emissions. International Environment The two wheeler industry is currently growing at a CAGR of 9. the decline is definitely there but not at such high extent.E-Bikes: There are several players in this segment which includes YO bikes. . This means that though this deal Kinetic will get the support of financial muscle of Mahindra Finance whereas. there will be a lot of pressure on the two-wheeler industry to come up with greener technologies. These players cater to a very specific customer segment but due to the high margins make a profitable venture for players like Harley Davidson. India‟s largest tractor and utility vehicle maker has already bought the business assets of loss making scooter maker Kinetic Motor Company and has 80% of the share in JV by investing Rs 110 crore to gain an entry into the two-wheeler market. Increases the threat of new entrants and industry rivalry since more and more companies would soon be vying for the same customer segment which currently is not that large in size. 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. Although the speculation was there that after the launch of TATA NANO there might be a drop of 20% in growth of two wheelers. Suzuki Zeus. and has thereby drawn the interest of a number of international players.45% from. with the increasing global prices of crude oil and gas the demand for such types of bikes is increasing slowly but in consistent fashion. Because of Euro II. for KMC it‟s a win-win situation as Mahindra has global sourcing expertise and experience in building differentiated products. as consumer might want to buy a 4-wheeler which is available to them almost at comparable price. Kawasaki Ninja. BSA Electric bikes. Suzuki Hayabusa.The NANO Effect: TATA’s launch of 1 Lac car has obviously raised concerns for two wheeler automobile industry. Another problem is the adherence to emission norms because of the lack of infrastructure for inspection. This was accepted by all insurance firms after much deliberation. Environmental Forces Demand for two wheelers is increasing and thereby overcrowding the roads. In light of this Yamaha educates its employees about hazardous materials in products and has implemented LCA methodologies. BMW etc. . INDUSTRY ANALYSIS .

Supplier’s product differentiation is low . with 15 different models including. R1 can face competition from these players. the parts are not highly differentiated when it comes to additional features and a huge number of small companies have already come up who manufacture such components. BMW bikes (Priced at Rs 18 lacs upwards and models like R 1200 GS. Karizma. .Most of the component work is outsourced proper supply chain management is costly yet needed.198cc engines) have also entered into India. but the customer base in high end market is not very significant.1.The industry being capital intensive the switching costs of suppliers is high .The political influence of incumbents helps them get favors from the government which makes it difficult for new entrants to flourish . Monster. features bikes like FZ. Ninja is a 250cc 4-stroke bike).The switching costs in NANO’s case would be high but they would be getting a benefit of 4 wheeler but in case of E-Bikes and Gearless Bikes such as Kinetic Honda switching costs are not much high so in a country like India for female drivers and teens. This is done in order to capture profits from the market . THREAT OF NEW ENTRANTS . . . Reliability and Style. R15 would have an edge.Supplier’s threat of forward integration is low as the capital investment required is very high and suppliers are small and fragmented. Ducati (Priced up to Rs 10-45 lacs. Desmosedici RR. SBK and Sport Classic.Suppliers can influence the industry by deciding on the price at which the raw materials can be sold. Even though E-Bikes and Nano might be able to draw some customers away from geared bikes but they are still not capable enough to become the ride of the youth of the country who are more looking at it as a style statement. which are powered by 696. Bargaining power of suppliers Suppliers of auto components are fragmented and extremely critical for this industry.7 lacs. .The relative price of substitutes like E-bikes and Kinetic would be lower as compared to NANO but relative quality such as engine. OVERALL: Low/Medium Rationale: Indian two-wheeler premium bike industry has been able to create a niche for itself which primarily runs on three factors namely: Mileage/Maintenance Cost. Since they have global presence and strong brand recognition worldwide.HIGHER-END BIKES: Higher end bikes such as Kawasaki Ninja (Priced at Rs 2. Bikes such as Yamaha R15. Street Fighter. Hyper Motard.. OVERALL: Low Rationale: Even though the availability of high quality components is very critical for the auto Manufacturers. gearless bikes and Ebikes are preferred. S 1000 RR and bigger K series bikes with 4-cylinder engines).

The concentration of competitors is high i. KMC. marketing costs.High expectations from buyers in terms of Styling and power . TVS . (e.Industry growth rate(CAGR) in past decade is almost 10% which is definitely not so much lucrative after liberalization and India‟s GDP has grown up to 8% . .Product differentiation definitely exists and whole industry is different from other industries .Cost disadvantage would be there for the new players since existing players already benefiting from economies of scale.Due to increase in number of models in all the categories. . Hero Honda.e. supply chain management would be high . .Initial Capital Requirement for setting up production plant.Importance of the product to buyers is high due to other factors like traffic congestion.The relative size of competitors is large and they have enough operational excellence and financial muscle.The barriers to entry is very high due to presence of strong players like Yamaha. the buyers are empowered to a large extent.After the liberalization policy of ‟91 barriers to entry for this segment has reduced and government regulations and taxes have been relaxed.Product differentiation is low as any product being matched in a few months by competitor.High per capita income makes buyers less price sensitive thereby decreasing the bargaining power . BARGENING POWER OF BUYERS . Hero Honda. Kawasaki has tie up with Bajaj Motor Limited) OVERALL: LOW Rationale: Looking at the high barriers to entry due to the initial capital requirements and other Infrastructure like access to distribution channels and also the low growth rate. . LML etc. TVS. the industry Should not see many new players entering the arena. . . Royal Enfield.Access to Distribution channels would be tough and capital intensive if the new competitor doesn’t tie up with any of existing player. . fuel prices .g..The other industries are having products that can act as substitutes but then the switching costs of buyers is high OVERALL: HIGH INDUSTRY RIVALRY .Dealers threat of backward integration is low as the capital investment required is very high and buyers are small and fragmented. Bajaj Auto.

Due to moderate industry growth rate of 10%. The threat of new entrants. who already have a huge market share. we would say that the Industry is Attractive .Buyers‟ switching costs are low as each company has its own portfolio of products and it can cater to each and every segment OVERALL: HIGH/VERY HIGH Rationale: The industry is earmarked with large and powerful competitors like Bajaj and Hero Honda. looking at the high profit margins along with some moderate growth opportunities. the Indian two wheeler market offers a decent potential for growth. The reasons for unattractiveness of industry for a new entrant are: But for an incumbent the equation changes and with the rising levels of per capita income of people. Even though the industry is bound to see a lot of competition. the struggle to increase sales is being reduced to a constant-sum game where everyone is trying to outsmart the competitors by innovations and price wars. This growth is relevant in the light of the fact that 70 per cent of India’s population is below the age of 35 Years and 150 million people [Refer Figure 1Annexure A]..Industry growth rate (CAGR) in past decade is almost 10% which is definitely not so much lucrative after liberalization and India’s GDP has grown up to 8% .Industry is earmarked with high profit margins . the threat of substitutes as well as bargaining power of suppliers are favorable forces. INDUSTRY ATTRACTIVENESS From the analysis done. we can see that it’s really very difficult for a new entrant to see the industry as economically viable to enter.

As such. to the purchaser. If during this period of warranty the Motorcycle proves to be defective due to material or workmanship. To provide good services. Yamaha receives heavy competitive pressures especially on grounds of the cost as well as distribution leadership assumed by these players.000 kilometers of its operation. YAMAHA through its Authorized Dealers will repair the Motorcycle without charging the labor or parts value as per the terms and conditions .COMPETITIOR’S ANALYSIS Big players such as Hero Honda and Bajaj (as shown in the figure above) have exercised a huge Bargaining power over suppliers as well as buyers. The Yamaha Best Service Stations are planned to increase to 250. Yamaha ensures the availability of all major parts with their dealers. It also provides engineers to dealers to provide the service to their customers. YAMAHA warrants the products to be free from manufacturing defects for a period of two (2) years from the date of sale of the Motorcycle or first 30. Also. whichever occurs first. YAMAHA will replace or repair at its Authorized Dealership free of charge.000 kilometers of its operation. Yamaha’s annual capacity is very less as compared to other competitors. whichever occurs first. [refer Annexure – A for detailed competitor analysis] INTERNAL ENVIRONMENT ANALYSIS VALUE CHAIN ANALYSIS PRIMARY ACTIVITIES Service Customer Satisfaction has always been the top priority of Yamaha and the company is planning to enhance Yamaha Bike Station numbers to 180 from current 100. those parts which may be found on examination to have manufacturing defect. Currently Yamaha is providing bikes only in 150cc whereas their counterparts are have already launched their bikes in 150-250c bikes. within 2 years from the date of sale of Motorcycle or first 30.

They have two conveyor lines where bikes can manufacture in parallel in two shifts. They usually run their theme with the Campaign “Yes Yamaha”. Manufacturing of engines and gears are done in Faridabad plant while production runs in Surajpur. Currently. Yamaha has introduced the unique concept of Yamaha Bike Station (YBS). They have tie-ups with Transportation companies to deliver the motorbikes at dealer’s place. They coordinate with their all vendors through software. welding etc. in Faridabad and Surajpur (Noida). Operations Yamaha has two plants i. they have separate departments for activities like painting. They also promote their products through Road Shows. an authorized Yamaha Dealership with the Best 3S facility . it exercises a relatively lesser influence on its distributors in terms of stocking and display. the company has increased its production capacity from 400000 bikes per year to 600000 bikes per year. it is the responsibility of the vendor to provide raw materials at the company gate. The lead time of the bikes is very high as compared to their competitors.e. Outbound Logistics Yamaha has a smaller range of models in comparison with its counterparts in India like Hero Honda and Bajaj. Yamaha has a policy of ordering for the parts at least three months in advance. Yamaha does not offer any credit terms to its dealers . Mexico. Also.Best Showroom.Marketing & Sales John Abraham is the Brand Ambassador of Yamaha in India. a motorcycle comprises of over 2000 components which are locally sourced. As such. software automatically sends the order to their all vendors with all the requirements. Also. However. Rock concerts in the country. Philippines. Yamaha India also serves to foreign markets such as Argentina. After deciding the number of bikes to be produced. Best Service Facility and Genuine Parts Inbound Logistics Yamaha procures the heavy components from its vendors in Japan and Thailand. As such. and Bangladesh etc. the supply side is marked by a lot of politics between the vendors and bigger players who have a large appetite to place orders beyond capacity thus creating an artificial scarcity in the market. The two wheeler industry largely sources its parts and components from common vendors in North India (Faridabad being the hub).

The role of Purchase Management is to negotiate with the vendors on the terms of price and delivery. The infrastructure at both the plants supports production of motorcycles and its parts for the domestic as well as oversees market. At the core are the 5-S and TPM activities that fuel our agile Manufacturing Processes. They store the products in the lot of production which is going to follow. SUPPORT ACTIVITIES Firm Infrastructure Manufacturing facilities comprises of 2 state-of-the-art Plants at Faridabad (Haryana) and Surajpur (Uttar Pradesh). Human Resources Management They have more than 2000 employees including staff and managers. Particularly for 150cc+ bikes. For instance. they introduced a very high technology which differentiates Yamaha from its competitors in this segment. Welding processes as well as finishing processes of Electroplating and Painting till the assembly line. Procurement The procurement system in Yamaha is totally online. They have also an appropriate capacity to store their raw materials. . As company plans the production for the next 3 months and enters into their software. They have introduced bike in radical tires for the first time on the Indian roads. YZF-R15 Yamaha first designed a cowling shape around the radiator that would make maximum use of the running airflow.except in discretional cases. the order for the raw materials automatically reaches to each and every vendor. We have In-house facility for Machining. The Labour Union possesses a very strong bargaining power especially post the 72 day strike in 2000 which led to institution of a binding increment in allowances at the operational-supervisory level every three years. Technological Development Yamaha’s technology in India is fully supported by its parent company from Japan. This is an aberration to the industry trend of an average of 2 month credit period. All activities in the company are headed by Japanese except HR Department. Purchase Department checks the quality and quantity of raw material and transfer to stores department.

They have also filed a patent application for various technological solutions related to the diesel engine. Innovation Resources The strong R&D development from Japan has a capacity to provide innovative products to serve the customer from each segment. Decentralization of work clear hierarchy facilitates the smooth flow of working. gears and other parts while Surajpur plant is for assembling. They also recruit casual workers mainly for the purpose of procurement and assembling. They have a pool of experience holders who are there in the organization over a long time. the parent company from Japan provides the required funds to Yamaha India. Faridabad plant manufacture the engine. floor workers are encouraged to plan their work schedule on their own. It also maintains a good working capital because they provide very less credit to their dealers. company has very easy access to the raw materials. Workers are also expected to state a minimum level of productivity. As Faridabad is called the hub for raw material for the automotive industry. Both plants are located in the industrial area of their respective cities. Intangible Resources Human Resources Yamaha has around 2000 employees including both the plants. Organizational Resources Rather than communicating the instructions downward. . DiAsiL cylinders. Then the schedule and resources are finalized through direct interaction of workers and management.YAMAHA INDIA’S RESOURCES Tangible Resources Financial Resources Yamaha Motors Corporation. Company also has two assembly lines which can run in parallel. and design approach differentiate Yamaha over the other competitors. For example. Technological Resources The unique technologies like liquid cooled engine. they have launched their bike with Radical tires for the smooth riding. They also have launched many models with innovative design like Enticer.per day or per week and any deviation from this standard is analyzed and corrected by the workers and the management. Physical Resources Company has two plants in Faridabad and Surajpur. Their idea sense is totally based on customer needs.

Indian customers always perceive Yamaha as a sport bike.Reputational Resources Yamaha has the brand image for their products. . They believed in keeping a long term relation with their suppliers. With the image of bikes like RX100.

Also.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 liquid coolant in a liquid-cooling system absorbs engine noise. faster than steel. -R15 and FZ16 engines have a single-axis balancer. a good balance which will provide a good riding performance. That's why the engine is quieter and the ride has a quality feeling. . All these technologies facilitate a better engine performance. A good R&D is always a valuable for any company. Liquid cooling has the ability to keep down the temperature in a highperformance engine that would otherwise reach very high temperatures. It is also very costly to imitate because setting new R&D requires huge investment for the competitors. This reduces engine vibration. The above technologies which Yamaha develops are very rare. which in turn reduces vibration felt by the riders at the front and rear of the seat. good acceleration capability. made motorbike to mount a liquid cooling system for a better engine performance. the handlebars and the footrest. That's why it is used on race machines.

RECOMMENDATIONS Focus on metro cities Yamaha should target metro cities first for their premium bikes. The poor roads conditions of other cities is also the one reason not to focus on 2 tier cities. The reason is that the earning capacity of youth is higher as compared to 2 tier cities. Measures should be taken to improve its dealership Yamaha which is trying to build a brand new image of a high tech and stylish brand of bikes should take appropriate steps to show it in their showrooms. Youth oriented promotion Yamaha claims that they target the customers of age group 18-25 but their ad never represents this so they should make such kind of AD where youth should take in as center of attraction. Yamaha don’t provides any credit period to its vendors. Also. Yamaha should go beyond 150cc+ bikes. Yamaha should plan to increase the annual production capacity which is very as compared to its competitors. More models in 150cc+ segment (only bikes at 150cc bikes) As other competitors like Hero Honda. Bajaj provides motorbikes up to 250cc. They should do this earliest to capture the market because vast majority of people depending on ads and friends as their chief sources of information about the products. Yamaha should provide credit periods to their dealers so that they give more orders. Sports Bikes.e. Rural area with entry segment bikes and scooters. Currently. Yamaha have only 3 bikes in 150cc in different variants. . Yamaha should increase their production capacity As Yamaha India has plans to capture four different markets in India i. They should also use their Faridabad plant to assemble the bikes after taking the license. Should improve the after sale services Yamaha is not satisfying their customers in after sales services. parts of the bike are not easily available in the market. This is the major drawback in capturing the market share so Yamaha should take some better steps to satisfy and retain their customers.

financialexpress.html http://www.html http://www.businessworld.com/service/warranty.yamaha-motor-india.com/doc/32459289/TWO-WHEELER-P-P-T .sulekha.com/2010/04/06/yamaha-eyes-deluxe-premium-bike-segments/ http://www.cms http://ezinearticles.in/ducati-india-plans-sell-150-high-end-bikes-year-2010-2245934 http://www.motorbeam.com/2010-04-19/news/27604874_1_yamahaplans-pankaj-dubey-india-yamaha-motor http://articles.indiatimes.in/index.financialexpress.com/yamaha-india-bolster-sales-by-23-2percent_12_2010_postedby_jayashankar-menon http://articles.com/ http://economictimes.html http://www.in/story-news-bikes/yamahas_turnaround_strategy-561-0.html http://bikes.com/whatsnew/win20.indiatimes.REFERENCES http://www.com/doc/2165100/Yamaha http://www.com/2010-04-19/news/27604874_1_yamahaplans-pankaj-dubey-india-yamaha-motor http://www.yamaha-motor-india.html http://www.com/Member/memberhead.com/bikes/yamaha-bikes/yamaha-applies-for-turbodiesel-enginepatent/ http://www.in/2009/10/08/bajaj-launches-sports-bike-kawasaki-ninja.html http://www.html http://www.whereincity.html http://www.com/autoindia/200-300-cc-bikes-premium-segmentmotorcycles-in-india/ http://goaonwheels.com/doc/28370752/Comparison-Study-of-Honda-Hero-Honda-ampBajaj http://www.com/news/news-byindustry/auto/automobiles/mahindra-kinetic-is-a-win-win-deal/articleshow/3311955.scribd.com/whatsnew/win20.dancewithshadows.business-standard.php/Automobiles/Yamahas-New-Spark-Plug.com/india/news/bmw-bikes-in-india-by-dec-at-rs-18-lakhonwards/113917/on http://www.overdrive.topnews.com/doc/28710601/Yamaha-Sales-promotion-and-Customersatisfaction http://www.mouthshut.indiatimes.siamindia.aspx http://www.com/?Future-of-Electric-Bikes-in-India&id=5316144 http://www.com/talkies/news/16984-yamaha-unveils-new-ad-campaign-around-icccricket-world-cup-2011-a.surfindia.com/review/Yamaha-FZ16-qprrtqrrqm http://www.html http://www.com/about/profile/process.economictimes.oneindia.scribd.html http://www.economictimes.com/automobile/compare-150cc-500cc-bikes.com/news/premium-bike-segment-pulls-it-for-thesector/275817/3 http://automotivehorizon.scribd.yamaha-motor-india.yamaha-motor-india.yamaha-motor-india.com/16secrets/engine/index.com/news/the-nano-effect/434592/ http://news.scribd.xbhp.

Established in 1999. Ltd. is a result of the joint venture between India's Hero Group and Japanese Honda Motors Company in the year 1983. Japan and is located at Manesar. The annual capacity is 1000000 units. This joint venture has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.. Their main models in this segment are . (HMSI) is a wholly owned subsidiary of Honda Motor Company Ltd. the Honda Motorcycle & Scooter India Pvt. The company exports scooters to the European Union. Hero Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian Motorcycle Company. The company's most well-known brand is the Honda Activa that revolutionized the Indian scooter market in terms of design and features. Haryana.Hero Honda Motors Ltd.

scooters. Motorcycle of the Year Above 150cc (SZ-R) by Bike India Awards. Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization and among the top five in terms of annual turnover. Annexure B – Achievements of Premium Segment Bikes of Yamaha Bike of the the Year 2010 (SZ-X) by ET Zigwheels. Best Executive 125cc Commuter Motorcycle of the Year 2010 (YBR-125) by ET Zigwheels. has started offering products in all segments (mopeds & scoote rettes. . 150cc Commuter Motorcycle of the Year 2010 (SZ-X) by ET Zigwheels. Viewer‟s Choice Award (SZ-X) by CNBC Overdrive Awards 2011. Viewer‟s Choice Award (SZ-X) by NDTV CAR & BIKE AWARDS 2011. three wheelers). Best Styling & Success in Motorsports by Auto India. Today. Viewer‟s Choice Bike of the Year Award (SZ-X) by ET Zigwheels. the company has become a market leader. These days. motorcycles. Most Sporty. Bajaj Auto Ltd.Established in 1945 Bajaj Auto Ltd was incorporated as a trading company.