The competitive strategy used by Yokohama is

February 14, 2019 February 25th, 2019 Management

The competitive strategy used by Yokohama is differentiation. Tyre business is considered as the wide market because there are several tyre brands that can found in the market. For example, Goodyear, Sumitomo, Cooper Tyres, Michelin, Bridgestone, Pirelli and Continental. Among these competitors, Yokohama had offered the products with advanced function and superior value to increase the sales of tyres.
In my opinion, Yokohama used this strategy to face the main competitors such as Bridgestone and Sumitomo Rubber Industries. Instead of reached the goal in the wide tyre market, Yokohama introduced themselves an eco-friendly company with the objectives of reduce, reuse and recycle. As a knowledge, Yokohama are an ISO9001 and ISO14001 company which are the most well-known standard among the ISO’S. On 25th July 2011, Yokohama Tyre in Australia has awarded ISO 14001 Certification which can improved the environmental management. Moreover, Yokohama Tyre in Philippines, has awarded ISO 9001 certification which valid from 13 February 2018 until 12 February 2021.The ISO 9001 can advance the quality management.
Besides that, Yokohama used the differentiation strategy for increased the sales revenue. However, the cost of a yokohama tyre is more expensive than another brand’s tyre, but Yokohama had introduced some functional tyre that gives the consumer satisfaction. Yokohama tyre also branded themselves as an eco-friendly company as them knows the consumers are more prefer to the eco-friendly product nowadays to reduce the pollution that happens on our Earth.
In addition, Yokohama has developed their business throughout the world with some advertisement. These advertisements had caused this company need to spent a lot of money on it. For an example, Yokohama had exhibit themselves at FC EXPO – 14th International Hydrogen & Fuel Cell Expo from 28th February to 2nd March. In this EXPO, Yokohama introduced the visitors “ibar” series of high-pressure hydrogen gas hoses. This had made many people know about Yokohama Brand and may consume the products after visited the EXPO.
In conclusion, the differentiation strategy had been conducted by Yokohama effectively to compete among the tyre market. The sales revenue of Yokohama can be increases and thus can make a lot of profit. Therefore, the company can use the amount of profit to purchase better quality of raw materials, modern machinery and create lots of new technology.

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