2-14-08 Notes japanese Motorcycles

2-14-08 Notes japanese Motorcycles - Year 1 Year 2 Year 3...

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02/14/2008 Vision and Strategy – Japanese Motorcycle industry 1) Strategy – originally a military concept = long term, ex. To win WW2. Strategic plan Operational plan Long term Short term Broad Narrow General Detailed a) Growth Strategies i) Diversification (1) Expand into new markets (2) To reduce risk (3) More income (4) Growth ii) Cost Leadership (1) Lower cost – ex. South-West Airlines (lead because of Employee productivity/ efficiency) (2) Ex. Wal-Mart – large scale of operation (3) Ex. UPS – technology iii) Differentiation (1) People want to buy because it is different/ more desirable (2) Harley Davidson – incredible customer loyalty (3) IPod – sleek looks b) The Importance of Growth: The Winner’s Competitive Cycle i) Increased Investment ------------ increased volume --- decreased Cost ----- increased profit-------^ Market
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Unformatted text preview: Year 1 Year 2 Year 3 100 200 400 800 Company A 50 50 50 50 Company B 50 150 350 750 750/50= 15times larger that company A c) The Japanese Motorcycle industry i) Market Share (1) 1955 50 co. (2) 1960 30 co. (3) 1965 8 co. (4) 1969 4 co. ii) Honda (1) Reduces prices drastically (2) 80 models per year vs. Yamahas 34 models (a) Causes Yamaha to admit defeat in 1983 iii) Japanese bikes into the US (1) Gets bikes that are light so that women can ride them (2) Start to produce heavier and heavier bikes and became opponent of Harley (3) Harley disappears from the market (a) Come back by introducing Japanese system Market Share Profit Margin 1955 1960 1955 1960 Tohatsu 22% 4% 8% - 8% Honda 20% 44% 3% 10% Market Share 1967 1981 1983 Yamaha 10% 35% 27% Honda 65% 40% 47%...
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This note was uploaded on 09/08/2010 for the course BUS 160 at San Jose State University .

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2-14-08 Notes japanese Motorcycles - Year 1 Year 2 Year 3...

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