Honda vs Yamaha: Strategic Competition

HondaYamaha: StrategyOfCompetition Preemptive action: secret to Honda's rise In a fast-growing market, enterprises must develop faster than their competitors in order to "take the lead". That is to say, they must increase sales before their competitors to increase their market share. Once a high growth rate is achieved, you only need to continue to "preemptible" in the future. If the sales volume is higher than the competitor's, the cost can be reduced, the cost will be reduced, the economic benefits will be improved, and the funds will become stronger, so that loans will become easier, there will be enough funds to invest again, and further expand the market share, entering the next round of "preemptive" cycle. In 20 Century 50 After that, the Japanese Motorcycle Market 40% The growth of the momentum, the title of the industry is easy to master. Originally, it was developed by China East Development Corporation, with a share 22% , Honda's second seat 20% . However 5 In the past few years, Honda has gained a strong dominant position in the motorcycle industry. 44% Market share. The market share of dongfa fell 4% He was forced to give up his head. The root cause is that in the face of the rapid growth of the market, Dong Fa has been unable to determine to expand production, stick to the old ambition. Honda strives 42% Meet the demand growth rate, rapidly increase market share, and increase annual sales 66% To this end, he has raised a large number of bank loans. Dongfa is the first in self-defeating status quo and has not put Honda in the eyes. Fortunately, Honda can make full and flexible use of the "preemptive strategy" to quickly reduce costs, thus taking advantage in the competition in the motorcycle market. At this time, the annual growth rate of the motorcycle market has been reduced 9% , Dongfa has gone back to the sky. After giving up the throne of the Chief, the East lost and eventually went bankrupt. Honda has been developing since then, and its strength is strong. 19699 Honda has a high market share in Japan when it shares the world with Yamaha, Suzuki, and Kawasaki. 55% To become a new leader in the industry. In 70 At the beginning of the age, the demand for motorcycles in the world slowed down significantly and was close to saturation. Honda decided to develop new production lines-to enter the automobile market and implement diversified operations. At that time, the auto industry was still quite sluggish. Honda had to invest the best equipment, technical strength, and talents in hand to prevent new career failures, those that support large-scale investment are of course not in the motorcycle sector. However, Honda did not expect it at that time, which caused a "classic battle" in the modern industrial field ". Dare to Compete: YAMAHA fully sniper Honda While Honda is distracted by its automobile business and does not care about its motorcycle business, Yamaha, a new motorcycle manufacturer, thinks this is a good opportunity to compete for the world's first place and actively explore its market share at all costs. Honda was defeated in the fierce offensive of Yamaha, L 981 In, its domestic market share fell 40% While Yamaha was developed from the original L 0% Add 35% Left and right, that is, all the data lost by Honda is already in use. Later, the gap between the two was further reduced 1 Percent, Honda is 38% , Yamaha is 37% The next step will surpass Honda and take the lead. Yamaha is indeed a good developer. All their resources are invested in motorcycles and related products. The variety is becoming more and more complete, and the production capacity is continuously improved. In 1970s, the Yamaha variety was L 8 Type, roughly Honda 35 Half. L 981 Yamaha is 60 Type, Honda is 63 . Since then, Yamaha has continuously launched 18 New models, surpassing Honda's L 7 Type. Yamaha is constantly competing with Honda and seems to be doing well. Yamaha's manager finally 1981 "Honda is desperately selling cars, and experienced motorcycle salesmen are mostly in the automobile department. We can decide with them on motorcycles. As long as I have the production capacity, I can beat Honda ." Same year 8 Monthly, Yamaha announced the start of building annual production capacity L00 Wanner motorcycle factory. Once the new plant is built, Yamaha's total production capacity will be achieved 400 More than Honda 20 Tens of thousands of vehicles. If all motorcycles from its new factory can be sold in Japan, Yamaha's domestic market share will be close 60% . As a result, Yamaha's manager, Mr. Chi, issued a text like this: "The decisive gap between Honda and our company lies in our powerful supply capabilities. Since we are a professional motorcycle manufacturer, of course we are not willing to go to the second place. Within one year, we will become the largest manufacturer in China. In two years, we will take the lead in the world ." Honda built a large-scale automobile factory in the United States and stepped into the automobile industry step by step. Double hero showdown: Honda strike across Yamaha Honda certainly won't be silent in the face of Yamaha's challenges and expansion. 1. 1978 Honda's Hedao manager declared: "When I was a manager, I would never allow the Chief to give people a hand ." Honda's tactics, as written in textbooks, mainly aim to cut prices sharply, enhance advertising, and increase the inventory of products for commissioned sales. When the competition is the most intense, even the best-selling varieties will be reduced. 3 To meet the needs of the war. 1982 Summer, 500cc Grade Micro-motorcycles even sell better 10 Variable Speed bicycles are cheap. Honda was able to sell its products to retailers at a price lower than Yamaha's. After the declaration was published, Honda's domestic market share rose from 38% All the way up 43% While Yamaha is 37% Down 23% . It can be seen that Honda's counterattack is not idle. Honda also used another new tactic in the revenge war, that is, to expand the product variety. Honda launched in less than a year and a half 81 New models have been replaced 32 The old model has been changed in the product catalog. 113 This number is surprising. The new varieties launched by Yamaha are not 34 Type, only eliminated 8 Old breed. Honda made a fresh impression on consumers, while Yamaha lost its freshness. Honda's heavy blow has led to a decline in Yamaha's sales 50% The above has suffered huge losses. It is estimated that, 1983 At the beginning of the year, Yamaha's inventory reached about half of the total inventory of the motorcycle industry, which is equivalent to its full year of sales. The only way to deal with inventory is to provide sales promotion fees to retailers and cut prices significantly, but Yamaha has no such power and is forced to leave it alone. In the end, it is really difficult to study how to turn inventory into scrap iron. Yamaha and its subsidiaries are in financial difficulties immediately, 1981 The ratio of annual liabilities to self-owned funds is 3 : 1 But 1983 The year deteriorates 7 : 1 . At this time, Honda relied on the continuous success of cars to make the financial system very sound. Yamaha had to develop emergency plans and cut motorcycle production 150 Tens of thousands of vehicles, and then reduced 138 Tens of thousands of vehicles, and the number of layoffs continues to expand, accounting for about all employees 20% . The original career plan had to be completely frozen within two years. However, Honda has never relaxed its pursuit. They further increased the variety and put pressure on Yamaha. Slave L 984 Beginning of the year 9 Honda updated the month. 39 Old models, available 39 New varieties. In this way, Honda's motorcycle offerings in the Japanese market reach a total 110 . Yamaha only 23 New products, especially leading products 50cc Honda has 18 Varieties are updated, while Yamaha does its best to achieve only 6 Type. To avoid bankruptcy, Yamaha began to auction assets. Slave 1983 Year 4 Month 1984 Year 4 In a year of the month, Yamaha sold 160 Land, buildings, and equipment of hundreds of millions of yuan. Average wages of employees, from 23 Thousands of yen reduction 21 Thousands of yen, the bonus is not paid at all. There are signs that the decline of Yamaha seems to be unable to stop.   Question 1: Honda's " Preemptive action " Why did the strategy succeed, while Yamaha's similar strategy had a completely opposite outcome? Question 2: What is Honda's defensive warfare? Question 3: How does Honda's defensive warfare inspire you?