3. STRATEGIES : 1960s
Licensing
agreement
with
Bucyrus-
Erie & IH &
Cummins
Took
advantage
of MITI’s
policy
Quality
upgradation
program
TQC
Establishment
of first R&D
lab
Cost
reduction
Project
A
4. STRATEGIES : 1970s
• Focus on exports and
bulldozer Project B
LDCs • Penetrate the new markets
• Developing and expanding
the dealer network Dealers
R&D
5. STRATEGIES : 1980s
Ended licensing
agreements
Reorganized
distribution
network
Launch of
EPOCHS & using
the philosophy of
PDCA
Project F &F
Emphasis on R&D
6. SWOT ANALYSIS
Strengths
1)High quality
2)Low cost
3)Strong labor
relations
Weakness
1)Poor
distribution
network
2)Centralized
production
Opportunities
1)North
American
markets
2)Diversification
Threats
1)Competition
2)Volatile
currency
7. SOLUTIONS
Improving the dealership
networks in overseas
markets
Obtaining global sourcing
arrangements to meet the
increasing demand &
reduce logistics involved
1.Wholly owned
subsidiary
2.Overseas joint venture
3.In-bond plant contractor
4.Independent overseas
manufacturer
Reducing cost and
number of components
and maintaining the
quality of the product &
improving after sales
service
8. Politics can influence business of one company badly
and at the same instance favor its archrival
As market grows centralized production can lead to
problem in meeting demand and overall cost structure
Quality management in the long term leads to cost
reduction
Centralized production system is prone to exchange
rate risk
Only the most adaptable wins
Keep a tab on rivals and then strategize
Success today doesn’t necessarily imply success
tomorrow
Strategic intent is very important like Maru-C &
PDCA here
