Strategy and management of KAMOTSA

1. 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 World’s 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 1930’s expanded into agricultural machinery
- During II world war, produced military equipment.
Market share : - 50%
Sales : - $168 million

2. 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 world’s major markets- tennesse ; UK,
 Expanding product line.

3. 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 1990’s)
State of industry : - Stagnant sales, less demand of sales equipment
Strategy : - free discussion
New culture -3G’s (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