Yonex Co., Ltd
Yonex Co., Ltd
Businesses come up with effective ways of going about their activities with the objective acquiring a better position at the global market. Teams apply some of the strategies recognized to be helpful in how the company functions and this appears to be beneficial to the firms which apply the techniques in the most effective manner. An example of a company which strives to fit into the global market is Yonex which has its head station in Tokyo, Japan.
Yonex is a multinational corporation focusing on the manufacturing of sportswear and apparel. The group focuses on the production of products related to three major games which include tennis, golf, and badminton. The company, for instance, manufactures racquets, footwear, clothing, bags, grip tapes, and balls associated with tennis. The group also develops drivers, hybrids, irons, wedges, putters, and fairway woods which are vital requirements in golf. Other than developing various products associated with different games, the company runs golf women’s clubs in Asia, the U.S., and specific EU countries (Yonex Co., Ltd, 2018). The foundation that was incorporated in 1958 is providing a real challenge to the companies operating in the same sector as much as its production targets specific areas. The group’s president (Kusaki Hayashida) and the Chairman (Ben Yoneyama) continue to display proficient leadership techniques which steer the company to the right direction.
Presently, the company has serving stations at various areas including Europe, Asia, Africa, the Middle East, America, and Oceania (Yonex Co., Ltd, 2018). The Yonex distributors at the various nations make it is easy for consumers at various points to access the products without much struggle. The team has the chances of performing well in the global market because of the several subsidiaries which operate under its name. Some of the renowned subsidiaries include Yonex Corporation (U.S.A), Yonex Corporation (Canada), Yonex U.K., Yonex Taiwan, Yonex India, and Yonex China (Yonex Co., Ltd, 2018). The current situation at the company presents a different scenario from the humble beginnings exhibited during the foundational stages. Founder Minoru Yoneyama, for example, started by manufacturing and selling wooden goods in Nagaoka City by 1946 (Yonex Co., Ltd, 2018). The team continued to witness increased growth during the 1960s when it received the Japanese Prize of Smaller Enterprise Agency’s Director for its outstanding leadership abilities. Nowadays, the team is a leading world maker of sports products in tennis, golf, and badminton.
Competition in the Industry
Yonex faces stiff competition from other operators which requires it to be creative in the way it performs its activities. One of the major competitors which Yonex must watch out for is Nike which is making strong entries into Japan. The American leading manufacturer of sportswear and apparel is introducing better ways of enticing buyers with a good example being its latest introduction of the Nike SNKRS app that will offer Japanese buyers the opportunity to view and even buy the sneakers of their choice (Nike, Inc, 2018). The introduction of the app would also give consumers a new experience of personalized services that would signify the company’s dedication to provide the best services. Nike’s General Manager of the SNKRS app is hopeful the introduction will suit the Japanese culture for sneakers. Other than using enticing ways to attract customers, the company employs highly qualified employees which act as a primary feature giving the company competitive advantage (Nike, Inc, 2018). An opportunity which Nike can use to continue leading in the market is to uphold its quality and to maximum the gains it acquires from the strong brand name. The good reputation must have contributed to the $34 billion generated in 2017 compared to the company generates up to $3.8 million acquired by Yonex (Owler, Inc, 2018). Even though Nike performs well in Japan and the global market, it ought to watch out how it enters the developing world where it only has few store running on franchise agreement. The increased interest in other brands may also harm how Nike performs its activities as times change.
Apart from Nike which appears to be Yonex’s major challenger, Adidas which is a leading German multinational company proves to be a tough competitor for Yonex. The company invests in more than 40 countries globally thereby getting the chance to acquire revenue from a large portion of buyers. Adidas is introducing captivating marketing techniques in Japan with an example being the Runbase which features running events seeking to promote Adidas products (Beattie, 2012). Dave Thomas, the VP for marketing in Japan restores hope that the marketing model will provide consumers with more awareness about the product thereby opening the chance to attract more consumers (Beattie, 2012). Unfortunately, Adidas mostly focus on the production of football items as much as it produces goods in other games. The company in this case might have to increase its focus on other areas if it wishes to improve its dominance in the sector.
Even though the company faces competition from other players, it applies certain techniques to acquire the consumers’ attention and passion towards the products. The company makes sure that it produces the finest quality that would compel customers all over the world. The best way to compare how the three companies perform would be use the SWOT analysis framework which is increasingly becoming a fundamental working tool for understanding an organization’s capacity to compete effectively at the local and global levels.
SWOT Analysis – Yonex
Other than focusing on quality production, the company pays attention on its marketing techniques to par with the leading operators in Japan and outside the country. The team explores various marketing techniques with the aim of capturing the diverse market and to follow the suit of international players which rely on effective marketing techniques as a way of gaining competitive advantage. The company tries to reach buyers using various platforms such as the social media which is becoming fundamental marketing tool in the contemporary times. The manufacturer, for example, permits buyers to reach it through Twitter, LinkedIn, Skype, and Facebook. The online marketing avenue makes it possible for Yonex to reach buyers across the globe which in turn impacts on the organizational income. The group also considers its website to be a fundamental tool where it can market and engage consumers on its products. The team displays its products on the website which offer clear guidance on how to acquire products from the seller. The company also exploits the various print publications such as magazines, newspapers, and leaflets which it distributes to various points, particularly in areas where many people exist at the same time.
The group, however, understands that the competitors employ similar marketing techniques and strives to improve how it reaches buyers. The company, for example, has set up a big showroom known as Yonex Showroom Akihabara where it provides the space for people to learn more about the products it offers, and to allow them to pick the items that suit the best. The showroom is fitted with high technology and highly qualified personnel to attend to the visitors who visit the place in large numbers. The personnel engage the visitors in such a way that it increases their desires and passion for the games they play or value. The multi-billion investment in Chiyoda-Ku, Tokyo is placed on a strategic place because it is just five minutes from Tokyo Metro Akihabara Station thereby making it a suitable place for many people visiting Tokyo. The facility’s management has invested in personnel who have the capacity to converse with the buyers using various languages including Indonesian, Spanish, Chinese, Korean, Japanese, and English thus making it possible to serve consumers from various backgrounds.
Other than relying on its sophisticated showroom, the company employs some of the advanced marketing models which enable it to maintain a leading position in Japan and globally. The team, for example, conducts its marketing activities using the marketing mix approach also known as the 4Ps model. Isoraite (2016) encourages entrepreneurs to embrace the 4Ps marketing skills because it offers an extensive overview of the market and the consumers’ wants. The manufacturer makes sure that its products are attractive and of high quality to woo more buyers. The group also ensures that it avails its products to as many places as possible to satisfy the increasing demand for sportswear related to the games falling within the company’s scope. The group believes that setting a price that would be appealing to a larger group would allow it to attract a bigger portion of the consumers. Setting prices that appeal to many consumers makes it possible to attract many buyers which in turn impact on the company’s revenue generation. The team while applying the 4Ps model puts much effort to carry out an enticing promotion that would entice many buyers locally and internationally.
Other than the well-structured marketing techniques, the Yonex relies on the guidance of an organizational structure dubbed Company with Board of Corporate Auditors as well as of an Executive Officer System that it introduced in 2013 with the objective of facilitating prompt and efficient decision-making processes, and to build the business execution. The Board of Directors comprises of 8 individuals (directors) with an additional 2 independent directors who add valuable insight on issues regarding the business management. The Audit and Supervisory Board members are permitted to attend the meetings convened by the Board of Directors to monitor how the leadership team makes decisions regarding the company’s operations (Yonex Co., Ltd., 2018). The Audit and Supervisory body serves a significant role in making sure that all transactions and activities happen in accordance with requirements thereby minimizing the chances of experiencing unethical occurrences or unclear circumstances that may not be easy to explain. The Audit and Supervisory Board works collaboratively with personnel at the Internal Audit Department which is supervised by the president. The two groups collaborate to boost internal control operations and to improve the organizational structures. The company has also established Risk Management Committee, the Compliance Committee, and Information Security Committee which serve to achieve appropriate coordination of more activities. The strong and coordinating organizational structure play a significant role in fostering good outcome that would satisfy buyers.
The team displays amazing performing performance but it must address some of the weak areas which may affect how it goes about its activities. One of the evident weaknesses is that the company still adheres to International Quality Management System Standard ISO 9001:2008 (Yonex Co., Ltd., 2018) which is an older version compared with the ISO 9001:2008 which is recommended for institutions practicing at the international market. Major companies such as Emirates Airlines have already switched to the latest standardization form signifying that they pay more attention to satisfying the customers’ desire for quality (Middle East Logistics, 2017). The organization should be in a capacity to infuse the ISO 9001:2015 with other total quality management (TQM) tools to achieve continuous improvement (CI) and excellence which are core aspects of business operations.
The evident opportunity which is likely to improve how Yonex performs in its line of production is that the company operates subsidiaries in foreign nations thereby expanding its source of revenue and chances of selling to buyers. Operating at the global scale also provides the manufacturer with advanced technological and workforce skills that can help the company to record better outcomes in the way it functions. The group, for example, is likely to learn how other companies employ motivational models such as the goal setting theory and Maslow hierarchy of needs and use the lessons to improve on how the internal structures work. Fortunately, the company is developing its technology which may also serve as an opportunity to par with the other global manufacturers in the sector.
The evident threat the company is facing and which may heavily impact on its activities is stiff competition it faces from Nike and Adidas. It emerges that the Yonex’s competitors are applying equally satisfying products and services to buyers which make it difficult to outdo their market share. It is more worrying that the revenues by Nike and Adidas surpass that of Yonex which is far much behind. The only way for Yonex to deal with matter would be to find ways of applying models which are almost similar with the leading operators in the industry. Otherwise, the team might not be on the same category as Nike and Adidas if it does not put any additional effort to improve operations.
Recommendations for Growth
The three companies show significant interest in their desire to become world leaders in the production of sports gears and apparel and this would only become successful through the application of specific features that may help all the firms to witness increased performance in their various areas of operations. The companies must focus on developing how they apply technology in their operations considering the numerous benefits coming with using advanced ways of manufacturing goods and offering services. Applying technology in the various areas of operations will not only help the companies to improve the production process but will also create the impression that they are dedicated to use the latest designs to suit consumers’ needs and desires.
Other than applying improved technology to go about the manufacturing actions, it may be essential to equip the workers with better working techniques which should be a priority in any organization wishing to improve the workers’ output. The organizational leaders ought to identify the right places where the workers can acquire additional skills for their roles. The administrators may also inform the employees at the various areas to improve their awareness through personal investigations using some of the available sources such as the internet, books, and journals. Even though empowering the workers may be quite costly, especially if the organization has to cater for the cost, the benefit of the process will be long-lasting and beneficial to how the workers perform.
The third way to improve performance at the three companies operating in the same sector would be to promote exchange programs where workers from one company visit the other to acquire vital skills that would help to improve how they function. The visits should be strategically placed such that they do not disrupt normal operations, and in a manner that they result it positive impact on the workers’ output.
Yonex is performing well in the sector where it operates but it must focus on the impact of its competitors on the business activities. The team must learn how Nike and Adidas go about their activities which give them the ability to generate high revenues from their activities. It is encouraging that Yonex applies improved marketing techniques as well as relies on an effective organizational structure which coordinates as a team to realize the business goals and objectives. The three firms should embrace similar ideologies of improving their services because they perform in the same sector. The three groups, regardless of the idea that their revenues differ, should focus on improving technological application, training, and exchange programs to acquire insight on what the other does differently.
Beattie, A. (2012). Adidas navigates Japanese market with creative flair. Retrieved from http://adage.com/article/cmo-interviews/adidas-navigates-japanese-market-creative-flair/233710/
Isoraite, M. (2016). Marketing mix theoretical aspects. International Journal of Research, 4(6), 25-37.
Middle East Logistics. (2017). Emirates post to adopt ISO 9001:2015 standard. Retrieved from https://www.logisticsmiddleeast.com/article-13262-emirates-post-to-adopt-iso-90012015-standard
Nike, Inc. (2018). Japan Nike SNKRS app reaches Japan. Retrieved from https://news.nike.com/news/nike-snkrs-app-japan
Owler, Inc. (2018). Yonex competitors, revenue, number of employees, funding and acquisitions. Retrieved from https://www.owler.com/company/yonex
Yonex Co., Ltd. (2018). Yonex. Retrieved from http://www.yonex.com/
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