Scribd
Upload
395 views27 pages

Komatsu V3 - 13.9

This document provides an overview of Komatsu Limited, including its history, strategies, external and internal analyses. It discusses Komatsu's founding in Japan and focus on mining equipment, as well as its licensing agreements and export growth. PESTEL, SWOT, and industry analyses are presented. Recommendations are made regarding opportunities like partnerships and threats such as technological restrictions. Current statistics on Komatsu and its main competitor Caterpillar are also presented.

Uploaded by

Adneya Audhi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
395 views27 pages

Komatsu V3 - 13.9

This document provides an overview of Komatsu Limited, including its history, strategies, external and internal analyses. It discusses Komatsu's founding in Japan and focus on mining equipment, as well as its licensing agreements and export growth. PESTEL, SWOT, and industry analyses are presented. Recommendations are made regarding opportunities like partnerships and threats such as technological restrictions. Current statistics on Komatsu and its main competitor Caterpillar are also presented.

Uploaded by

Adneya Audhi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 27

Komatsu Limited

Presented by:

Mayureshwar Sontakke 12155 Ruhan Tamboli 12156 Mohit Sheth 12151

Agenda
Case Summary Company History Komatsu (1984) & Strategy External analysis:
PESTEL Analysis Industry Analysis 6 forces

Internal Analysis:
SWOT Analysis

Recommendations

Company History
Japanese Company, headquartered in Tokyo, Osaka Started out as specialized producer of mining equipments In Post-war era moved to Industrial EME (earth-moving equipment) 1960s Licensing Agreement with International Harvester and BucyrusErie Started with TQC (Total Quality Control) Exports to sales reached 55% in 1975

Company Strategy
Focus on manufacturing excellence : Total Quality Control (TQC)

Exporting to LDC countries


Direct sales Payment accepted in terms of countertrade (as a solution for Equipment Financing Inability) Product development

Cross-functional prospects tapping

External Analysis PESTEL Analysis 6 forces Model

PESTEL Analysis
Political: Political Instability in traditional Source Countries Good Relationship with Eastern Bloc. Signed contract with Soviet Union. Local Government Pressures

Currency movements : Yen/Dollar Exchange Rates US Recession in 1980s leading to fall in Construction Companys Economical: contracts.

Social

Developing Countries were more Labour oriented Financing was to be provided to Developing Countries for EMEs Dealers were reluctant to become exclusive because they didnt have a brand image.

PESTEL Analysis
Technological:

Technology was with American EME manufacturers Technology to increase Fuel Efficiency was major concern Country-wise Different Industry Standards

Environmental:

Mining environment with different operating conditions in different countries.

Legal:

Different Legal Requirements in different countries to safeguard the workers working on EMEs. Trade restrictions & restrictive practises.

6 Forces Model
Rivalry
Caterpillar with good sales and distribution network and good foothold in US market. High barriers to entry Government policies

New Entrants

Substitution:

Human Labor (especially in Developing Countries)

6 Forces Model
Supplier power
International Harvester and Bucyrus-Erie : technology suppliers supplied on the price of restriction on Export

Buyer power

Developing economies had bidding market. Developing Economies was Labor Intensive Price sensitivity Financing was prior need

Government

For South East Asia and Africa importing machines involved countertrade Ronald Reagans Embargo gave Soviet Contracts to Komatsu Japan opened EME Industry to International Capital

Opportunities
Cash strapped International Harvester Different Countries had different mining operating Environments Siberian Natural Resource Project Reagan Administrations embargo

Threats
Dealers reluctant to become exclusive due to narrow product line Slowing demand of Construction Equipment Currency Movement: Yen/Dollar Rate Fluctuation
Technological Access for the price of Export Restriction

Strengths
Good R&D base (5.8 % spending on R&D). Total Quality Control (TQC), PDCA and Management by Policy Philosophy. Relatively efficient and cost effective Labor as compared to CAT.

Weaknesses
No essential Technical knowhow

Poor sales distribution and After Sales services Network


Small field population of Komatsu Products Highly Centralized Production System

Competition
7 manufacturers of the EME account for 90% of the dollar sales worldwide Komatsu steadily gaining Market share. International Harvester used Co operative competition.

Market Share of Major EME Producers


60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00% 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Caterpillar J.I.Case Deere Komatsu Fiat-Allis International Harvester

Clark

Present Scenario : KOMATSU

Present Scenario : CAT

Current Scenario for Komatsu :

1/2

Continued..

2/2

Komatsu current stats :

Caterpillars current position :

R&D Growth rate:

Geographic sales:

Some facts about Komatsu:

You might also like