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