Yamaha is a world-famous Japanese company, a world leader in many areas. It operates, in particular, in the field of engines, electronic devices, musical instruments, motorcycles. It was created at the end of the 19th century and thus benefits from more than a century of existence and experience.
The company is listed on the stock exchange, its main shareholders being Nomura Asset management (7.5% of the capital), Yamaha Corporation (6.9%) and Yamaha Motor (5.4%). Yamaha Corporation is now a global multinational. It has its head office in Japan, in Shizuoka, has around sixty different subsidiaries and employs approximately 20,000 full-time employees on a permanent basis.
About 2/3 of Yamaha's turnover is generated by the sale of musical instruments (65% of turnover in 2020), then nearly 28% by high-tech equipment. Yamaha Corporation generates 30% of its sales in Japan, 21% in North America, 20% in Europe.
Here we will present the SWOT analysis of Yamaha, attempting to show its strengths, weaknesses, opportunities and threats that currently affect it.
Yamaha's strengths
Yamaha has a history of more than a hundred years. The group is present and active, often a leader, in many and varied markets. This is the case, for example, for musical instruments, engines, motorcycles, electronic devices intended for the general public. This diversified presence allows it to reduce its risk of exposure to the market and limit the impact of an observed decline in one of the markets, for example.
Likewise, the geographic composition of its well-diversified turnover is a strength. With 30% made in Japan, 21% in North America and 20% in Europe, the turnover is well balanced and exposes Yamaha to several geographies, which allows it to diversify and limit the risks incurred by its activities.
Yamaha also enjoys impressive financial strength. In 2020, it achieved a turnover of 3.2 billion euros, despite the health crisis and the dramatic consequences of lockdowns and administrative closures.
Finally, Yamaha enjoys a good brand image and allocates a significant portion of its income to research and development to stay on the cutting edge of technology as much as possible.
The weaknesses of Yamaha Corporation
The Yamaha group remains dominated by Japanese management, which can prove to be a weakness. The penetration of the US and European markets can be considered insufficient, which penalizes the overall turnover of Yamaha Corporation.
The prices charged by Yamaha may be considered too high, which may be a weakness in gaining new customers or retaining existing customers.
Finally, since Yamaha is considered a premium brand, some consumers choose to forgo this brand so as not to equip themselves with a Yamaha and thus not take the risk of having their equipment stolen. The risk of greed weighs negatively on Yamaha and can be seen as a weakness for the brand, as this inevitably limits its turnover.
Opportunities for Yamaha
The markets in which Yamaha operates are globally dynamic markets (with the exception of the two-wheel segment), constantly changing, where leadership is dear and coveted. In fact, Yamaha is benefiting from these upward trends and the momentum observed in these markets.
New regulatory developments and the increased tendency to respect the environment and limit environmental impacts and pollution may also represent an opportunity for new business for Yamaha.
Current threats to Yamaha
The current threats facing Yamaha relate primarily to export and international law. Indeed, these are more and more restrictive, in particular, because of the customs wars currently observed between certain countries of Asia and the American continent. Asian producers are finding it increasingly difficult to export their productions, which could severely penalize Yamaha, which generates 70% of its sales outside of Japan.
In addition, the motorcycle market is an ageing and almost saturated market, where manufacturers are struggling to change consumer behavior and, therefore, boost their sales, which can negatively impact Yamaha and limit its sales.
Finally, Yamaha has been strongly impacted by the COVID pandemic, and its pursuit poses a serious threat to the group. Sales of musical instruments, and musical equipment, are sharply reduced in a COVID environment, where musical performances have suffered multiple cancellations. The rise of the various vaccination campaigns, nevertheless, offers the group some hope for the years to come, concerning the resumption of normal life and the return of the growth of its activities in its various segments.
Sources :
- Yamaha Motor France
- Résultats entreprise Yamaha CORP, chiffre d'affaires (CA) et bilan Yamaha CORP YAMCF OTCBB - Boursorama
- Yamaha CORPORATION : Actionnaires Dirigeants et Profil Société, 7951, JP3942600002 - Zone bourse