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Komatsu Case Study Analysis

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Komatsu Case Study Analysis
Komatsu Case Study

Contents Executive Summary 2 Evolution and Strategic Drivers of Komatsu (EME) 3 Organizational Culture 4 Five-Force Analysis: The EME Industry: 5 SWOT Analysis 8 Resource Based Competitive Advantage 8 Financials & Future Course 9 Company on The Right Path 11 References 12

Executive Summary
Komatsu, the Japan based earth moving equipment taking on Caterpillar manufacturer has been studied by management students around the globe for years now. This story of David vs Goliath provides us an insight about the strategies followed by David in bringing down Goliath.
Komatsu’s evolution and its strategies were studied in comparison with that of Caterpillar. Responses to each other’s moves in the global earth moving equipment industry have been analysed in the context of their international business strategies.
An industry to analysis was done to understand the environmental factors that affected the competition between the giant and the emerging. A SWOT analysis identified the internal resources and capabilities of Komatsu that aided it to develop its distinctive competitiveness.
How Komatsu achieve a sustained profitability, higher than the industry average despite the volatile international EME market was studied under the financial analysis.
The role of organizational culture in enabling Komatsu to succeed in the highly competitive industry was also studied in the case analysis.
Through all the above mentioned analysis, it was found out that the company was in the right track. Measures to ensure that the company continues to stay in the high profitability section have been discussed in the concluding part of the report.

Evolution and Strategic Drivers of Komatsu (EME)
Komatsu Limited or Komatsu is a multinational corporation that manufactures construction mining, and military equipment, Industrial equipments such as press machines, lasers and thermoelectric generators. Komatsu is the world's second largest



References: * http://www.cat.com/about-the-company * http://www.komatsu.com/CompanyInfo/profile/ * C.W.L.Hill & R.Jones, ‘Strategic Management- an integrated approach’(2009). Bizantra, New Delhi. * C.W.L.Hill & Arun.K.Jain, ‘International Business – competing in the global market place’ (2009).Tata McGrawHill, New Delhi.

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