Moreover, Honda holds bargaining strength because of its large size and financial strength. Inflation: If inflation increases the cost of raw material used in production will go high and selling price of product may go high that may decrease demand of the two wheeler. Yamaha is a global business whose products sell across more than 180 countries. The funding policy makes periodic contributions as required by applicable regulations. Eco-friendly Honda Prius enhanced the brand image 8. The company also provides financial services, power products, and other products and services. Yamaha has also retained it focus on innovation.
This is why it is a trusted name of motorcycles throughout the world. Developing hybrid Honda cars and fuel efficient cars for the future 2. Yamaha can use digital technology to improve its brand recognition and awareness. Volatile raw material prices Honda uses a variety of commodities in the production of its automotive products. For instance, in May 2013, Honda Motorcycle and Scooter India Pvt. Positive outlook for global motorcycle industry 3. The company is the leading manufacturer of small, general purpose engines for commercial, rental industry, and consumer applications.
A diversified product portfolio not only reduces business risks of the company, but also provides a strong future growth platform. This company chose the latest technology and designer efficient products and spare parts of the vehicles, which has increased the efficiency and speed of the vehicle. These regulations are subject to change, and are often made more restrictive, particularly in recent years, due to an increasing concern with respect to possible global climate changes. Fast growing automobile market can be used by Honda to increase their business Threats 1. Building regional alliances can help Yamaha find faster growth in these markets. Government policies for the automobile sector across the world can hurt international business of Honda cars 2.
In 2016, Yamaha saw its sales decline in several of the markets including China and Brazil. · Four major competitors are mainly concentrated on these heavyweight motorcycle segments: in addition to Harley- Davidson the other three are Yamaha, Suzuki, Honda all are Japanese companies. Conclusion: Yamaha is a strong global brand of motorcycles. Marketers need to consider the trading economy in short term and long term. Rising prices of raw material and labor: Rising prices of labor and raw material are driving the operational costs of brands like Yamaha higher. High brand equity and brand loyalty amongst customers 6.
Promotion Honda manufacturing company has the good promotion strategy and it adopted the sound and effective advertisement policy for the provision of their vehicles. Honda unlike many other automotive companies does not focus only on selling vehicles. Honda has manufacturing facilities in Japan, Thailand, China and Malaysia. Leading market position and brand, Honda is one of the leading manufacturers of Light vehicles in the world, it is the third largest in Japan and is the leading manufacturer of motorcycles in the world. In 2016 it spent 94. The brand has formed long term partnership with several suppliers who can supply good quality raw materials to build its automobiles.
In 2016 while its sales grew in India, it fell in China. Honda will build second car assembly plants in both Thailand and India, along with their first car factory in Argentina. Why Choose a Honda Engine? Official inauguration was done by then President of Pakistan, Farooq Ahmad Khan Leghari. The company has the full line up, which has covered the entry level with the low cost motorcycle to such motorcycle, which can have good taste and fund elements for the people. Honda has a reputation for producing the best quality engines around the world. The domestic part in motorcycles industries.
In addition, Yachiyo Industry, a consolidated subsidiary of the company assembles mini vehicles for the Japanese market. In 2012, Honda sold 80. Tightening emission standards, The European Union adopted Euro3 and Euro4 as comprehensive emissions regulations for passenger vehicles and heavy and light commercial vehicles in 1999, they were implemented in 2000 and 2005 accordingly. Strong brand equity also works to retain customers. It was also ranked 37 by Fortune Global 500 list for 2007.
It is because of the high level brand equity and its focus on smart engineering. Such a wide array of products helps them to create significant synergies in their production techniques, and improve their sales. It has partnered several suppliers across the globe for obtaining raw materials. These factors include brand image, marketing capabilities, large product range as well as customer trust ad loyalty. This environment is related of different types laws, government policies.