Komatsu Case Study Analysis

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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 earth moving…show more content…
5. Employee relations and empowerment: Komatsu maintains very strong employee relations and ensures that each employee has satisfaction in terms of work, cooperation with colleagues and winning approval from others, making them feel that they’re contributing to the organization greatly while ensuring that they’re in line with the organization values and goals. Five-Force Analysis: The EME Industry: I. Threat of New Entrants | 1 | 2 | 3 | Remarks | 1. Economies of scale is low | X | | | The industry is based on ‘Build to Order’ and the machine specs differ from customer to customer. | 2. Experience effects are high; therefore | | | X | Experience in running the business in this industry is vital because huge capital is invested. | 3. Product differentiation is medium | | X | | Differentiation in the product quality and the customer requirements is moderate during the time of sales but the differentiation factor lies in the after sales service & availability of spares | 4. Brand identification is high | | | X | Customers blindly rely on branded equipments. E.g. Caterpillar (55% market share) | 5. Capital requirements are very high | | | X | Because of the capital intensive nature of the product/ industry, new entrants would stand weak comparatively | 6. Incumbents control of distribution channels is high | | | X | Access to distribution channel for new entrants is difficult
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