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Komatsu History

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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192 views4 pages

Komatsu History

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.

Uploaded by

DPS1911
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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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