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Innovation Management to Capture Emerging Market. The case of the motorcycle industry
Submitted by Kohei MISHIMA, Faculty of Economics, Keio University Keio University on 13 mai 2015 - 14:23
Type de publication:Conference Paper
Source:Gerpisa colloquium, Paris (2015)
This presentation consists of two parts – the overview of motorcycle industry in the emerging markets and the strategy of Japanese firms. Also this presentation compares the features of Japanese motorcycle firms' strategy in the emerging market. Special attention is giving to value chain of motorcycle industry and innovation management of Honda, Yamaha and the structure of emerging motorcycle markets. Information gathered through the presenter's interviews and factory visits with Japanese firms will be extensively used.
Now in the world, about 60 million motorcycles are produced by year, and the 40% of those are made by Japanese firms in the world. Almost a comparable amount of motorcycles are made in China. The 15% of total volumes are made by Indian companies. You would find surprisingly little place of major Western companies in the motorcycle industry. So we could say motorcycle industry will be a good case to consider the emerging markets and Asian companies.
Honda is the leading firm of the industry because they produce motorcycles about 15 million, one-fourth of world total production volume, each year. Although the importance of having a production base in Japan has declined, but Honda and other Japanese firms have maintained their competitive advantage by expanding their business globally.
So our hypothesis is “to capture emerging markets, firms should (i) transfer their universal and global organizational capability, related to technology, and research & development (R&D), to the emerging countries; (ii) accumulate local-specific organizational capability as appropriate for each emerging country; (iii) combine it and create new synergies.” And we would test this hypothesis through the case study on motorcycle industry.
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