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Uploaded byMayank Bhagat
Komatsu
The document analyzes the heavy equipment manufacturing (HEM) industry and the strategies employed by an Indian HEM company from the 1960s-1980s. In the 1960s, the company pursued quality upgrades, research and development, and cost reduction initiatives. In the 1970s, it focused on exports, developing new markets, and expanding its dealer network. In the 1980s, it ended licensing agreements, reorganized distribution, and emphasized continued R&D. A SWOT analysis identified strengths in quality and costs, and weaknesses in distribution and centralized production. Solutions proposed improving overseas dealer networks, global sourcing arrangements, and reducing costs and components while maintaining quality.
Komatsu
- 1. 13101 MAYANK BHAGAT 13128 HARSHAL KHAIRNAR 13150 NIKHIL YADAV
- 2. EME INDUSTRY ANALYSIS HIGHLY CONCENTRATED UNSTABLE SATURATED MARKETS EMERGING MARKETS
- 3. STRATEGIES : 1960s Licensing agreement with Bucyrus- Erie & IH & Cummins Took advantage of MITI’s policy Quality upgradation program TQC Establishment of first R&D lab Cost reduction Project A
- 4. STRATEGIES : 1970s • Focus on exports and bulldozer Project B LDCs • Penetrate the new markets • Developing and expanding the dealer network Dealers R&D
- 5. STRATEGIES : 1980s Ended licensing agreements Reorganized distribution network Launch of EPOCHS & using the philosophy of PDCA Project F &F Emphasis on R&D
- 6. SWOT ANALYSIS Strengths 1)High quality 2)Low cost 3)Strong labor relations Weakness 1)Poor distribution network 2)Centralized production Opportunities 1)North American markets 2)Diversification Threats 1)Competition 2)Volatile currency
- 7. SOLUTIONS Improving thedealership networks in overseas markets Obtaining global sourcing arrangements to meet the increasing demand & reduce logistics involved 1.Wholly owned subsidiary 2.Overseas joint venture 3.In-bond plant contractor 4.Independent overseas manufacturer Reducing cost and number of components and maintaining the quality of the product & improving after sales service
- 8. Politics caninfluence business of one company badly and at the same instance favor its archrival As market grows centralized production can lead to problem in meeting demand and overall cost structure Quality management in the long term leads to cost reduction Centralized production system is prone to exchange rate risk Only the most adaptable wins Keep a tab on rivals and then strategize Success today doesn’t necessarily imply success tomorrow Strategic intent is very important like Maru-C & PDCA here
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