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    Komatsu V3 - 13.9

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    Adneya Audhi
    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.

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    Komatsu V3 - 13.9

    Uploaded by

    Adneya Audhi
    295 views27 pages
    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.

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    Komatsu V3_13.9 (1)

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    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.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    295 views27 pages

    Komatsu V3 - 13.9

    Uploaded by

    Adneya Audhi
    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.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 27
    At a glance
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    The key takeaways are that Komatsu is a Japanese company that started as a mining equipment producer and moved into industrial earth-moving equipment. It focuses on manufacturing excellence, exporting, and product development.

    Komatsu is a Japanese company headquartered in Tokyo that started as a specialized producer of mining equipment. In the post-war era it moved into industrial earth-moving equipment. In the 1960s it had licensing agreements with International Harvester and Bucyrus-Erie and started total quality control practices.

    Komatsu's strategy focuses on manufacturing excellence through total quality control, exporting to developing countries, direct sales, and product development.

    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:

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