Marketing
Case Analysis
Komatsu Ltd. and Project G (A)
The Kawai Era (1964-1982)
Strategies
Acquired and develop advanced technology to raise quality, and to increase efficiency to the Cat’s level.
Introduced “management by policy.”
“Project A,” sought to raise the quality of Komatsu’s middle-sized bulldozers to Cat’s level & instituted the “Plan, Do, Check, Act” (PDCA) cycle.
In 1966, his five-year “World A” campaign sought to make Komatsu internationally competitive in cost and quality. Results
Project A enabled Komatsu to double its warranty period within two years while cutting claim rates by two-thirds.
Komatsu had emerged as the major challenger in the construction equipment industry.
Komatsu’s potentially dangerous reliance on domestic sales reduced.
The Nogawa Era (1982-1987)
Strategies
Focused more on cost-cutting and aggressive sales tactics than on shifting production overseas or reducing Komatsu’s dependence on the stagnating construction industry.
Made extensive capital investments to cut costs, launched a campaign to use assets more efficiently boosted research and testing activities.
Short-term strategy - raising prices abroad, expanding overseas parts procurement, and cutting production costs.
Medium-term strategy - developed more marketable construction equipment products through increased R&D spending and capital investments in manufacturing facilities.
Long-term - he told, “Komatsu is gearing itself toward new business areas of high-growth potential.”
Internationalization : Establishment of two important overseas plants
Chattanooga, Tennessee,
Birtley, United Kingdom.
Results
Reduction in overall sales because of falling demand, worldwide price wars, a rapidly appreciating yen.
Nogawa’s apparent resistance to faster and more dramatic change, and his unpopular autocratic management style eventually resulted in his replacement.
The Tanaka Era (1987-1989)
Strategies
Tanaka ended the practices of price
Komatsu Ltd. and Project G (A)
The Kawai Era (1964-1982)
Strategies
Acquired and develop advanced technology to raise quality, and to increase efficiency to the Cat’s level.
Introduced “management by policy.”
“Project A,” sought to raise the quality of Komatsu’s middle-sized bulldozers to Cat’s level & instituted the “Plan, Do, Check, Act” (PDCA) cycle.
In 1966, his five-year “World A” campaign sought to make Komatsu internationally competitive in cost and quality. Results
Project A enabled Komatsu to double its warranty period within two years while cutting claim rates by two-thirds.
Komatsu had emerged as the major challenger in the construction equipment industry.
Komatsu’s potentially dangerous reliance on domestic sales reduced.
The Nogawa Era (1982-1987)
Strategies
Focused more on cost-cutting and aggressive sales tactics than on shifting production overseas or reducing Komatsu’s dependence on the stagnating construction industry.
Made extensive capital investments to cut costs, launched a campaign to use assets more efficiently boosted research and testing activities.
Short-term strategy - raising prices abroad, expanding overseas parts procurement, and cutting production costs.
Medium-term strategy - developed more marketable construction equipment products through increased R&D spending and capital investments in manufacturing facilities.
Long-term - he told, “Komatsu is gearing itself toward new business areas of high-growth potential.”
Internationalization : Establishment of two important overseas plants
Chattanooga, Tennessee,
Birtley, United Kingdom.
Results
Reduction in overall sales because of falling demand, worldwide price wars, a rapidly appreciating yen.
Nogawa’s apparent resistance to faster and more dramatic change, and his unpopular autocratic management style eventually resulted in his replacement.
The Tanaka Era (1987-1989)
Strategies
Tanaka ended the practices of price