Honda Yamaha

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1.0 Case Summary In 1950s in Japanese motorcycle market have 50 competitors. Tohatsu Company was the number one motorcycle manufacturer with a 22 percent market share; Honda was the number two competitors with a 20 percent market share. From 1995-1960, Honda did significantly increase market share at 42 percent per year. Hence Honda established a “winner’s competitive cycle”. To support “winner’s competitive cycle” Honda borrowed heavily as well. Until 1964s, Tohatsu filed for bankruptcy and Honda become the leader in Japanese motorcycle market. In 1970s, when Honda began focusing on the automobile market, Yamaha saw an opportunity to attack and take territory in the motorcycle market. 1981 year-end Yamaha almost nearly market share with…show more content…
3.0 Alternative Strategies 3.1 Joint venture between Honda and Yamaha in order to achieve win-win situation Based on the case, we can see that Honda-Yamaha is in a great war of fighting over each other for their business. To stop all these fire, one of the better ways to solve this is to create a win-win situation for the both of them. To be more precise, win-win situation means that both of the companies get benefits out of their joint venture. Joint venture in term means that two business entities coming together to undertake a single project or aspects of business. This action does not involve dissolving the original business of both companies and organizational structure. A joint venture of Honda and Yamaha can actually combine their effort to create another company where each of them take an interest, both operational and financial as well as sharing profits and losses for their new venture. In this way it can be observed that the level of involvement and commitment from both companies they put forth from the start. Although joint ventures sometimes does not come in as complete or even as permanent as mergers because when a project has been ended then the newly formed company might be dissolved. As a whole, Honda and Yamaha should have taken this thought of joining venture seriously in order to

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