KOMATSU CASE STUDY

VISHAL NAVALE 2011G23

SHAYAN KHAN 2011G49
VISHWAJEET GAIKWAD 2011G04
STRATEGIC MARKETING
KOMATSU LIMITED
JAPANESE COMPANY : HQ IN TOKYO

ESTABLISHED IN 1921 AS A SPECIALIZED PRODUCER OF MINING
EQUIPMENT

TWO-TON CRAWLER TYPE AGRICULTURAL TRACTOR THE FIRST IN
JAPAN YEAR 1931

BECAME AN IMPORTANT PRODUCER OF BULLDOZERS,TANKS,ETC
DURING SECOND WORLD WAR

Komatsu launched EPOCHS efficient production oriented choices
specification- Improve production efficiency

TQC :Total Quality Control programs

THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY
KOMATSU:SALES BY GEOGRAPHIC REASON
SWOT ANALYSIS
STRENGTHS

GOOD RELATIONS WITH WORKERS
STRONG MARKET SHARE IN JAPAN
WIDE RANGE OF PRODUCTS
R & D SETUP
LOW MATERIAL AND WORKER COST
GOOD KNOWLEDGE BASE
TOTAL QUALITY SYSTEM
WEAKNESS

PRODUCTION PLATS ONLY IN SOME
DEVELOPING COUNTRIES
GAPS IN OVERSEAS SALES
NETWORK
PRODUCTS REACHING MATURITY
STAGE

OPPORTUNITIES

US MARKET OFFERS
OPPORTUNITY TO GROW
DEVELOPMENT ON NEW
PRODUCTS (EMPLOYEE
SUGGESTION PROGRAM)
THREATS

CAT/OTHER COMPETITORS
POSES GREAT THREAT TO
KOMATSU
FLUCTUATIONS IN
CURRENCY RATE
PROBLEMS
LACK OF STRONG DISTRIBUTION SALES AND
SERVICE NETWORK

CENTRALIZED PRODUCTION

UNSTABLE CURRENCY
FLUCTUATION OF YEN HAS RESTRICTED
KOMATSU ABILITY TO GROW
EXAMPLE:IF YEN INCREASES IN VALUE
AGAINST DOLLAR THIS RESULTS IN RAISING KOMATSU
PRICES
RECOMMENDATIONS
ACQUIRE A LARGER NETWORK
ATTRACTING MORE DEALERS:BY INCREASING THE SIZE OF
PRODUCT LINE
SETUP LIMITED PARTNERSHIPS WITH COMPANIES WITH STRONG
EXISTING DISTRIBUTION CHANNELS,SALES AND SERVICE
Centralized production has helped for quality
improvement but increased the freight cost so to counter
this plants to be setup in developing countries

overseas joint venture
contractors
wholly owned subsidiary

For yen fluctuations komatsu can sell its products in
local currency. The current model is to manufacture in
japan and export for which yen fluctuations are
becoming threat

Thank you