THE POWER OF INNOVATION: AN ANALYSIS OF THE JAPANESE BIG 4 MOTORBIKE FIRMS' TECHNOLOGICAL ADVANCEMENTS AND FUTURE PROSPECTS

Abstract

This paper provides a comprehensive analysis of the oligopoly formed by Suzuki, Kawasaki, Yamaha, and Honda in the motorbike industry. Our study reveals that Honda leads the market as a pioneer, introducing new technologies and releasing new models. The oligopoly controls market pricing by charging similar prices, although slight differentials suggest the presence of pricing discrimination. Furthermore, evidence demonstrates that these four companies engage in cooperative and competitive behaviours to sustain a thriving market. In conclusion, the oligopoly theory serves as an adequate explanation for the dynamics of global markets, including the motorbike industry. The presence of a few dominant firms in the Japanese market raises questions regarding the prevalence of collusion or competition as the prevailing dynamic. This paper seeks to provide insights into the nature of the Japanese motorcycle market and the strategies employed by the four companies to maintain their competitive positions. Ultimately, our study contributes to a better understanding of the importance of this oligopoly and its impact on the motorbike industry.