komatsu- overview and details
Post on 20-Jun-2015
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KOMATSU’S STRATEGIC CHANGES
Presented By:Amritpal singh Bedi
KOMATSU AT A GLANCE
• Komatsu-established in 1921 by Tetsuya Katada.
• Initially produced mining equipments. By 1930, shifted to agricultural and military equipments
• Enjoyed the peak profits despite the low quality products.
• New leadership under Ryoichi Kawai in 1964 with the introduction of PDCA to compete against CAT.
Continued…
• 1960s saw cost slashing programs.
• 1970s focused on quality & technological advancements to surpass CAT
• 1982 - CAT surpassed and forced to be defensive.
• Nogawa-era began
• 1984 - new strategic goals set
• 1985 - crisis begins
• 1987 - Tanaka transition
• 1988 - a mark up in US prices by 7%
• 1990 - new leadership under Katada
PROBLEMS• Entry of foreign investors & quality competitors
sales dropped
• Falling demands, price wars heightened trade friction
• Cost cutting aggressive sales
• New strategic goals, faster product introduction and expansion of non-construction industrial machinery businesses.
• Unpopular autocratic management style of the President. President replaced.
• Controversial joint venture Brand image down.
• Low quality and expensive products Further drop in sales.
DATA INTERPRETATION
KOMATSU CATERPILLAR0
100
200
300
400
500
600
700
1980 19811982 19831984 19851986 19871988 19891990 1991
COMPANY DOWNFALL
19871988198919901991
-20
-15
-10
-5
0
5
10
total growth rate
total growth rate
OUR RECOMMONDATIONS
• New business ventures
• Early export decisions to counter stagnant market and currency fluctuations
• Stable top management
• No random changes in presidents and management.
• Strict quality check and proper costing
THANK YOU
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