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    Komatsu History

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    DPS1911
    Komatsu Ltd. is a Japanese manufacturing company established in 1921 that produces construction and mining equipment. In the 1960s under Kawai's leadership, Komatsu implemented quality control programs that helped increase its market share from 50% to 65%, emerging as the main challenger to Caterpillar. In the 1980s and 1990s, Komatsu faced challenges like declining demand but continued pursuing international expansion, cost cutting initiatives, and new strategies around diversification, innovation, and culture introduced under various CEOs to continue growing market share globally. The current goal is to become the world's premier construction equipment manufacturer.

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    Komatsu History

    Uploaded by

    DPS1911
    120 views4 pages
    Komatsu Ltd. is a Japanese manufacturing company established in 1921 that produces construction and mining equipment. In the 1960s under Kawai's leadership, Komatsu implemented quality control programs that helped increase its market share from 50% to 65%, emerging as the main challenger to Caterpillar. In the 1980s and 1990s, Komatsu faced challenges like declining demand but continued pursuing international expansion, cost cutting initiatives, and new strategies around diversification, innovation, and culture introduced under various CEOs to continue growing market share globally. The current goal is to become the world's premier construction equipment manufacturer.

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    Komatsu History

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    Komatsu Ltd. is a Japanese manufacturing company established in 1921 that produces construction and mining equipment. In the 1960s under Kawai's leadership, Komatsu implemented quality control programs that helped increase its market share from 50% to 65%, emerging as the main challenger to Caterpillar. In the 1980s and 1990s, Komatsu faced challenges like declining demand but continued pursuing international expansion, cost cutting initiatives, and new strategies around diversification, innovation, and culture introduced under various CEOs to continue growing market share globally. The current goal is to become the world's premier construction equipment manufacturer.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    120 views4 pages

    Komatsu History

    Uploaded by

    DPS1911
    Komatsu Ltd. is a Japanese manufacturing company established in 1921 that produces construction and mining equipment. In the 1960s under Kawai's leadership, Komatsu implemented quality control programs that helped increase its market share from 50% to 65%, emerging as the main challenger to Caterpillar. In the 1980s and 1990s, Komatsu faced challenges like declining demand but continued pursuing international expansion, cost cutting initiatives, and new strategies around diversification, innovation, and culture introduced under various CEOs to continue growing market share globally. The current goal is to become the world's premier construction equipment manufacturer.

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    Sachin Chaudhary PGDM2/1528

    CASE ANALYSIS
    KOMATSU LTD.

    Company : - Komatsu ltd.


    Established : - 1921
    Issue : - To increase the market share with new slogan
    GROWTH, GLOBAL, GROUPWIDE
    Goal : - Becoming Worlds premier construction equipment
    Manufacturer
    OBJECTIVE : - To catch up and with surpass caterpillar (CAT)
    Challenge : - Catching & surpassing caterpillar (cat)

    HISTORY
    Established : - 1921
    - As specialized producer of mining equipment
    - During 1930s expanded into agricultural machinery
    - During II world war, produced military equipment.

    Market share : - 50%


    Sales : - $168 million
    KAWAI ERA (1964-1982)
    State of industry : - Company was prepared on TQC (total quality control) program.

    Strategy : - Acquire and develop advanced technology, to raise quality, and to


    increase efficiency to the level necessary to catch up with and surpass Cat .

    Management : - Ryoichi Kawai


    Introduced :-
    Management by policy- 1st policy -> Project A- Raising quality
    New system of control- Plan , do , check ,act (PDCA) cycle.

    Result : - Project A was successful, increase in sales & market share from 50% to
    65%, Komatsu emerged as the major challenger in construction equipment industry.

    THE NOGAWA ERA (1982-1987)


    State of industry : - Fall in demand, appreciation

    Strategy :- Cost cutting & aggressive sales tactics instead of shifting


    production overseas.

    Management : - Shoji Nogawa


    Autocratic style of leadership or management

    Result : - established plant in worlds major markets- tennesse ; UK,

    Expanding product line.


    TANAKA ERA (1987-1989)
    State of industry : - declining state , Challenging economics crisis

    Strategy : - Not to reduce cost but to bring down the production


    product diversification.

    Management : - Masao Tanaka


    Ended the practice of price discounting & high pressure sale,
    Laid groundwork for more rational, fair & orderly competition in the
    domestic market

    Result : - pursued internationalization.


    market share fell from 35% to 31%, overall profits rose.

    KATADA ERA (entering the 1990s)


    State of industry : - Stagnant sales, less demand of sales equipment

    Strategy : - free discussion


    New culture -3Gs (growth, global, group wide)

    TQC is not center operating in creating and innovating way.


    Project G- grow construction equipment construction
    Growth segments electronic, robotics and plastics

    Management : - Tetsuya katada


    Introduced new slogan
    Result : - Abolish top-down management approach
    : - sales increase

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