Komatsu Case Study Analysis

3515 Words Dec 5th, 2012 15 Pages
Komatsu Case Study

Contents Executive Summary 2 Evolution and Strategic Drivers of Komatsu (EME) 3 Organizational Culture 4 Five-Force Analysis: The EME Industry: 5 SWOT Analysis 8 Resource Based Competitive Advantage 8 Financials & Future Course 9 Company on The Right Path 11 References 12

Executive Summary
Komatsu, the Japan based earth moving equipment taking on Caterpillar manufacturer has been studied by management students around the globe for years now. This story of David vs Goliath provides us an insight about the strategies followed by David in bringing down Goliath.
Komatsu’s evolution and its strategies were studied in comparison with that of Caterpillar. Responses to each other’s moves in the global
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They also launched quality upgrading programs in its factories. The program was used to reflect the Total Quality Control (TQC) concept. All personnel were expected to strive for TQC.

In 1964, the company started Project A which aimed to upgrade the quality of the small and medium-sized bulldozers. In 1972, the company launched project B which focused on exports. In 1979 the company launched Project called “F and F” which stood for “Future and Frontiers” and its objective was to develop new products and new businesses. The project encouraged suggestions from all its employees by asking them to consider both the need of society and the technical know-how of the company.

The company also began to focus more towards its Research and Development during the early 1970s. Efforts continued with some attention to basic research as well as product development. It had the distinction of introducing the world’s first radio-controlled bulldoze, amphibious bulldozer and remote-controlled underwater bulldozer.

The management decided to focus on improving the competitiveness of its products. A four- part cost reduction plan was initiated. During the same time the company also accelerated its product development program.

In 1981, they launched EPOCHS (Efficient Production Oriented Choice Specifications) whose main purpose was to allow the company to respond to the diverse market needs without compromising its cost position. Also, by the end

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