PROBLEM:

1. AGGRESSIVE COMPETITIONS - To become the top producer of

motorcycle market between Honda and Yamaha worldwide. Yamaha try
to attack Honda using battle plan “Ninja” – like sneak attack of quietly by
increasing their capacity and dealing to produce more faster.
2. AGGRESSIVE PRODUCTION - Yamaha produces too much quantity of
product in order to compete with Honda which lead to increase
production costs.

OBJECTIVES:

AREAS OF CONSIDERATION/ STATEMENT OF FACTS:

 THE COMPANY NEED TO SET THEY OWN TARGET - As in this case study,
Yamaha and Honda is the big company that compete with each other.
So, they need to set the strategy target for the produced the product.
Other than that, if this company want to set a target they able to stop
and see if company on track at any point. If they cannot doing it, the
company can analyse where the problem is. They should be able to
identify areas that are flourishing and present greater opportunity more
quickly. In here, Honda has own strategy target. In the study case the
Honda had strategy to included massive price cuts and increase in
promotional funds and field inventories. This is because if this company make this
strategy, they had a lot opportunity to compete with the Toyota. For
example in the case study, Honda was able to provide products to its
dealers at costs that enabled the dealers to earn profit that were 10%
higher than the profit they could earn by selling Yamaha motorcycles.
The others example in this case study is the innovative element of Honda’s
counterattack were the use of product variety as a competitive weapon. So
it will devote considerable resources toward new modal design and
production.
 RESEARCH AND DEVELOPMENT - They target also for the immediate
future. It can help the company plan for subsequent years too. They can
measure actual performance against the objectives that they set and
start spotting seasonal trends. This end of year analysis allows the
company to lay out next targets in a more informed way, with a set of
data to work from and also can be improve. In here we can look the
reared in research and development, Honda strength lie in product and
process innovation, primarily in design new vehicle models and features
an in designing new vehicle models and features and in conceiving fresh
techniques for building them faster and better.
COURSE OF ACTION:
 The best strategy to solve problem between Yamaha and Honda is make
an agreement to other competitor, diversification, and business strategy,
Research and Development (RND) and Innovation. It makes sense that all
the strategy have been using by the other competitor in business
planning. Only different strategy and planning make a big different in
term gain more profit. Therefore, the best strategy to solve is diversification.
Diversification can reduce risk on investment to financial asset and real
asset. This strategy had been using by Honda industry. It brings
motorcycle industry become slowly. Honda industry senses this risk to
motorcycle industry and turn into automobiles to reduce risk and failure.
Moreover, Honda industry diversification their motorcycle to international
place which make them more profitable and growth. It helps them to
become more powerful motorcycle rather than other manufacturing
industry. So, it also help them to do increase volume of production and
growth their industry.

RECOMMENDATION (BASIS OF SELECTION):

Yamaha would be able to secure a long term market by using these
strategies.
 It is high time to increase its investment to further improve its present
product as well to identify new potential product. Yamaha need to do in
order to compete with other motorcycle producers. This is because
knowledge evolves very fast and should Yamaha remain as where it is,
then it would be left out.
 Revise its manufacturing process by introducing innovations right from
the beginning of the production. One the ways is through advance
technologies. While at the same time, Yamaha also need to reduce its
unsold stock which we believe is incurring them high cost especially in
maintenance as well as storing. Therefore, it is only wise for Yamaha to
implement the above combination of three strategies in order to tackle
the present problem as well for future expansion. Poor decision making
can lead to massive loss as well as could tarnish the image of the
company. However, it is not too late for Yamaha to revise it strategy. By
implementing the above steps, not only Yamaha could reduce the unsold
stock but also improve its sales, thus revive its profit margin. In the long
run, Yamaha would also be able to extend its market to overseas thus
enabling them to compete with other manufacturers. Honda should know
also the weaknesses about Yamaha, like Yamaha do to them. They
should study these so that they know also what the market strategies
they should propose.