STRATEGIC MARKETING

KOMATSU CASE STUDY

VISHAL NAVALE
SHAYAN KHAN VISHWAJEET GAIKWAD

2011G23
2011G49 2011G04

KOMATSU LIMITED

JAPANESE COMPANY : HQ IN TOKYO

ESTABLISHED IN 1921 AS A SPECIALIZED PRODUCER EQUIPMENT

OF MINING

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