Yamaha India Business Strategy and Review Analysis

Yamaha India Business Strategy and Review Analysis

Publish Date : May, 2016
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Yamaha India Business Strategy and Review Analysis report gives key to become top player in Indian Two Wheeler Industry

Having conquered the title of being the one of the top world’s two wheeler manufacturer, Yamaha is well on its stairway to glory and fame. But the road to success is not always paved easy and effortless. It comes with its own ups and downs. This road to enlightenment was not devoid of such obstacles when Yamaha established a foothold in India, nevertheless achieving the desired result and landing on the right runway. This was attained largely to an extent with the launch of their product, the RX100 aiding in boosting both the motorcycle and the scooter segment. However, what the company needs to shift its focus to now is on their policy and backup after service.

Yamaha India Bike and Scooter Strategy Analysis FY 2016

The company is blessed with an excellently webbed dealer network across the country. However, a major percentage also seem to agree with the idea of shifting the company’s focus into major areas that need to be further developed, namely the policy of the company. This particular area of development has even resulted in the pulling back of some dealerships. The reason for their pulling back could be attributed to improperly demarcated areas and insufficient short term volume increase for dealers not giving them enough incentive for a long term deal. In such a dog eat dog world like ours, one needs to put all one’s energy and effort into survival and from the view point of a dealer, that could translate into discounting of products. One solution to the problems that seem to be underlying the situation could be to facilitate dealers to spread their network by means of anointing sub-dealerships of their respective branches following proper demarcation. In specific cases wherein the dealers are unable to further this expansion, the company gets to make the call.

Another concern among  the family of dealers also revolved around expectations of frequent CIP changes which necessitates the dealers to invest in huge funds, which results in pressurising them, more so as they are not allowed the freedom of having their own vendors as the company insists on having their own vendors to do the CIP change. This puts the dealers at a very delicate place where they are now expected to bear the additional costs incurred by the company that goes into CIP change. It would be hugely beneficial to the company to slightly ease the pressure that's insisted on dealers into a more easy situation that benefits both parties. This could be impacted on CIP changes, supply of tools and equipment to the service centre which could be accessible by the dealers  too instead of only to the company recognised vendors.

It all comes down to what the crowd thinks. And, even if the quantity on the price is huge, the quality is what needs to attract customers. However, their area of development mostly revolves around dealership in the sales and service sector. All these obstacles are easily solvable at the dealership level, where lesser pressure on the dealers to high investments and company recognised vendors might just give the dealers the freedom they need and the breathing space required to make sales and service run efficiently with a lot more quality than before, which can only mean good news for the company. With added pressure on the dealers, what eventually happens is a reduction in quality arising out of limited funds and sales personnel do not always hit the mark. The customers however contain a database of information about showcased products, which adds to the success to the company. However the company could benefit greatly by ensuring better quality of their sales and service personnel and focus more on these aspects to further better the company than just on the product itself. This is a paramount example to show that not only does product launch matter, but afterwards, the  real work begins. The real job involves selling the product to the masses, to make them buy the product. For ensuring this, the company may focus on adding a little extra attention to the quality of their service and sales representatives, who are the bridge between the people and the company, and you know what they say? A strong bridge makes a strong town. And now that the products are up to the mark, it is up to the company to strengthen their bridge further by concentrating on the people who make the bridge, namely the sales and service executives.

A strong example of a well connected dealer network which has taken all these aspects into account are the people at Honda, who have an immaculate company policy. Yamaha has only the simple task of piecing the little bits together along with what they already know and add in their tweaks to their areas of development to further strengthen their company policy. With an excellent product base, all they need is to build their foundation and an excellently policies building with the quality ensure meant of their sales and service department. This will make them a superpower alongside companies like Honda and give them a worthy enough opponent.

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Yamaha India Bike and Scooter Strategy Analysis FY 2016