Electronics multinationals: Secom - Toyota - Samsung

Please note that when you are analysing, for example, Japanese multinationals in the electronics industry, your comparisons do not have to be limited to Japanese rivals. Comparisons with Asia Pacific and European multinationals may be more apt and useful. The same point applies to Korea, Chinese and Taiwanese firms.

Consider a number of perspectives, including the aims of Japanese multinationals in relation to global strategies; the aims of Korean and Chinese multinationals and international business strategies; differences between industries and types of business; the degree of global versus regional control, and changes in operational control over time; the competitive advantages of these multinationals compared to those of rivals; variations in management, organization, and operations between home country and host nations; the ability of Japanese, Korean and Chinese multinationals to compete in Europe, Asia and North America, and their ability to adapt to changes in policy and markets; and the policies of host governments and the relevance of the EU.

You will have the opportunity to ask lecturers questions on all these issues, and we will be discussing some corporate cases and their assessments during RHUL lecture visit and the local lecturer should be able to discuss in class. You should use the literature on international and Asia Pacific business, available on the Moodle website, to help provide insights.

Comparison with other multinational companies in Asia Pacific and Europe

The main motive of this task is to discuss the strategy, core capabilities and organizational structure of Secom, Mitsubishi Corporation, Toyota, Hitachi, and Samsung Company. The paper explains how the government helps these companies to handle and overcome the rivalries internationally.

Secom-Japan

Secom Company was incorporated in 1962 in Japan (Glassdoor, 2018). The company is operating and enhancing its business activities and operations in Japan and more than 10 other countries. Secom provides ample of products and services including cash transport, security sensors, and security guards and other instruments through around 160 subsidiaries (Glassdoor, 2018).

Strategy

It is stated that the company uses dynamic and effective strategies in the Japanese market to overcome the rivalries globally (Graham, 2008). The company uses SWOT analysis to identify and measure the internal strengths and weaknesses and to overcome the external threats and opportunities in the competitive market. Along with this, Pestle analysis is initiated to prevent and minimize the issues, challenges, and risks that exist in the external environment. Apart from this, the company initiates the cost leadership strategy to attract and retain a maximum number of customers globally (Graham, 2008).

Corporate organization

It is analyzed from the various analysis that unique and dynamic corporate structure is derived by the company to conduct business activities and to attract shareholders (Secom, 2018). The organizational structure of Secom includes board of directors, audit committee, internal audit department, and executives. The corporate governance system of Secom has been drawn below.

Core capabilities

The core capabilities of Secom include leadership, effective business process, technological innovation, honesty, accountability and fast customer response (Di Stefano, Peteraf and Verona, 2010). With effective core capabilities, the company has been able to stand out against the rivalries globally.

The role of government

Japan’s system is constant and unique without parallel across the world. It is noted that Japan is a constitutional monarchy country whereby the power and authority of the emperor are limited. The country has the biggest and highest level of mobile broadband around the world with 4G wireless internet and mobile telecommunications networks that is covering 99% of the population (Japangov, 2017). The aim of the Japanese government is to attract a wide range of Indian IT organizations and across 2 lakh IT professionals or experts to handle and overcome the shortage of IT experts in the country (Singh, 2018). It is evident that the Japanese government had established an IOT acceleration Lab where many Indian organizations had already contributed. The IT system of Japan is not more strong and unique as compared to the Indian. On the other hand, IT industry is one of the biggest and unique sectors in India in today’s modern world. The Indian government has transformed India into a digitally and unique empowered country. The Indian government also had introduced the e-governance aiming at reshaping the government through dynamic and advanced technology. The government conducts innovative programs such as universal access of mobile connectivity that showcases connecting villages to mobile services and various network and maximizing network penetration through the ongoing and effective programs (Verma, 2015).

Perspectives to consider when analyzing Japanese multinationals

Mitsubishi Corporation is a Japan’s biggest trading Company which is incorporated in 1918. The company employs more than 70,000 employees and it has seven business segments such as machinery, energy, chemicals, banking, finance and food (Mitsubishicorp, 2018).

Strategy

Mitsubishi Corporation has emerged as a prominent leader in the international market managing business operation in more than 90 countries around the world. The marketing mix strategy and corporate level strategy are being used by the firm to maximize the scope of gaining competitive benefits (Bhasin, 2017).

Corporate organization

It is evident that Mitsubishi Corporation exercises dynamic and strong corporate culture to attract maximum employees towards the organization. The company was established for aiming of encouraging and promoting sports methods, harmony and mutual friendship among Mitsubishi group members through ample of sports activities under the Mitsubishi club. The organizational chart and its structure have been stated below.

Core capabilities

The core capabilities of Mitsubishi include extensive and unique product line up, leading-edge production and development, universal service network and rendering integrated solutions (Di Stefano, Peteraf and Verona, 2010).

It has been stated that the Japanese government plays a vital role in enhancing and improving the profitability of trading companies internationally. The government has set up invest Japan offices in agencies and ministries to serve as a single and unique contact point for foreign business people looking various facts, information and support in establishing a new business in Japan. It is stated that the Japanese government is failed to invest ample of the amount on professional in the country. Due to lack of fund, Mitsubishi Corporation faces ample of challenges while conducting business widely. On the contrary, China provides invest huge amount on the trading companies as it helps in attaining competitive over the rivalries. China is a biggest and major emerging market economy both in terms of total economic product and population. Thus, the country provides ample of opportunities to the various companies for attaining long term mission and vision. The Chinese government has invested a huge amount on the service sector to beat the rivalries globally (Ross, 2018).

Toyota is a Japanese multinational automotive manufacturing company which is formed in 1937. It is a biggest automotive manufacturer that provides automobile and hybrid electric vehicles to the customers across the world (ToyotamotoreastJapanInc, 2018).

It has been studied from the various studies that Toyota Corporation uses market penetration strategy to analyze and evaluate the tastes, preferences, and choices of the customers globally. Further, it also uses market development and corporate level strategies to stand out over the rivalries globally (Ichijo and Kohlbacher, 2008). The just-in-time production system is used by the company while operating its business activities and operations globally (Monden, 2011)

Overview of Secom, Mitsubishi Corporation, Toyota, Hitachi, and Samsung Company

Toyota organizational structure is based on the different business activities and operations of the company across the world. The company maintains a favorable working environment and culture at the workplace to maximize and increase the sale and revenue in the competitive market. The organizational chart for Toyota Motor Corporation has been detailed below

Core capabilities

The profitability and revenue of Toyota Corporation can be increased with possessing dynamic core capabilities. The company has strong and unique capabilities in intellectual capital, human resources, learning, and knowledge management; they exchange and train their vendors along with their employees to maintain their core competence. Apart from this, strong capabilities and resources also are being initiated by the firm to compete with rivalries globally (Di Stefano, Peteraf and Verona, 2010).

The role of government

Without a doubt, it is noted that Japan is one of the well-known countries when talking about the automobile industry. The government of the country is investing a large amount in the production of car brands such as Nissan, Toyota, Honda, and Suzuki, however, it has set the cheapest cost for vehicles. First domestic Gasoline engine car was produced in the country which can help Toyota to attain a competitive edge over the competitors. In today’s competitive world, various challenges are significantly apparent in the nation’s automotive industry which may impact on Toyota goodwill and financial position (CarfromJapan, 2018). In the contrary, it is noted that the Korean government is investing huge amount on research and development policies and strategies on the expansion and development of the automobile industry. The Korean government has developed and built its own car model in the mid 1970 and since then the country is growing constantly in the automobile industry (CarfromJapan, 2018).

Hitachi is a Japanese multinational conglomerate Corporation headquartered in Chiyoda, Tokyo, Japan. The firm is formulated in 1910 as it is listed on the Tokyo stock exchange (Hitachi, 2018). In today’s era, the firm is maximizing and enhancing the business objectives and goals in a hassle-free manner.

Strategy

It has been analyzed that Hitachi uses innovative and unique marketing strategies to build and improve the brand image in the minds of the customers. Segmentation, targeting, and positioning strategy are being used by Hitachi to cater its products widely as further it also uses diversification strategy to distinguish its products from the rivalries (Bhasin, 2018). It also uses porter diamond model to struggle with rivalries at the international level.

Key strategy and core capabilities

Corporate organization

The corporate organization is considered the backbone of every firm. As the same way, Hitachi also follows a unique and attractive organizational structure to boost sale and minimize the risk and challenges. The corporate structure includes board of directors, chairman of board, senior executive committee, president and group strategy committee. The organizational chart of Hitachi Corporation has been drawn below.

Core capabilities

The success and growth of the firm are dependent on the core values and capabilities. Some of the core capabilities for Hitachi include faster delivery, high quality, long lasting vehicles, innovation design, and advertising. By initiating core capabilities, Hitachi is able to struggle with rivalries globally as it also helps in improving goodwill and brand image internationally. The business of the company is driven by the various customer’s creativity, focus, resourcefulness and entrepreneurial spirit (Di Stefano, Peteraf and Verona, 2010).

The role of government

In conglomerate industry, the Japanese government is giving full contribution for overcoming on the rivalries globally. The military vehicle subsidy law was set up in March 1918. Under this law, the military provided subsidies to Japanese conglomerate and car manufacturers to manufacture automobiles vehicles in the global market (CarfromJapan, 2018). Automative, aircraft and electric industries are experienced growth and success in response to the requirements and needs of the era. On the other hand, the Korean government also plays a significant role to attract electronics companies in the global market. The government of the country provides a legislative basis for the expansion and growth of high technology industry with the help of national banking rules and regulations, tax incentives and low interest loans. The electronics industry is growing rapidly in such market globally. Various funds are provided by the Korean government for development and expansion of the electronics industry (CarfromJapan, 2018).

Samsung Electronics Company is a South Korean multinational electronics Corporation with its headquarter is located in Suwon, South Korea. The firm is incorporated in 1969 in Korea. The firm has employed approx 200,00 employees in more than 60 countries across the globe. The firm is a producer of telecom, digital convergence technology, memory chips, CDMA mobile phones and VCRs (Bnamericas, 2018).

Strategy

In order to attain a competitive edge, the company requires to have a unique and effective marketing strategy that is unique and effective. The company uses marketing strategy such as marketing mix, market penetration and product development strategy which enable it to become an industry player in the innovative technology sector. Along with this, price skimming strategy is initiated by the firm to attain the upper hand over their rivalries. In addition, it also implements porter five forces analysis to stay in the competitive market (Graham, 2008).

Organizational structure and governance

Corporate organization

The organizational structure of Samsung is categorized into three key divisions: consumer electronics, IT& mobile communications, and device solutions. Each and every division of the firm is controlled and handled separately taking into account the aspects of their products that have implications on innovative and unique product development, selling, marketing and other attributes of the business (Dudovskiy, 2017). The organizational structure of Samsung Electronics has been discussed below.

Core capabilities

Diversified business structure is the main and unique source of its competitive benefit. Along with this, complementary assets are useful in the growth and development of Smartphone globally. Collaboration and strong communication are unique capabilities for Samsung electronics in the competitive market that help in uplifting profitability. Along with this, sustainable and effective HRM is used by the company to attract and retain talented and skilled workforce towards the organization. Dynamic leadership is further exercised by Samsung electronics to guide and assist the employees in performing tasks and duties in a hassle-free manner (Helfat et al, 2009).

It is portrayed after studying that the South Korean government has had a significant and unique role in encouraging and promoting the growth and development of Samsung and some other electronics industry. Thus, Samsung can take ample of opportunities in the country with maintaining low labor cost internationally. The country has young and skilled workforce hence, various benefits can be taken by the company internationally. The government also renders a guided and assisted private industry through a series of export widely. Korean government has made unique and dynamic policies, plans and approaches to take ample of cost and rivalries benefits. In the compare and contrast, it is evident that Japan’s best practices and policies help in building and maximizing profitability and outcomes internationally. Apart from this, unbundling rules, regulations and policies are stipulated by detailed facility and function. It has been found that the Japanese electronics industry is one of the growing and dynamic industries across the world. The Japanese government is providing broadband infrastructure and resources to the electronics industries for achieving desired targets and goals. Various programs and sessions are being held by the government to improve the regulation of the electronics industry. The electronics companies are expressed through the industrial association shown by the electronic industries association of Japan(EIAJ). There are 600 companies are members of such association including Hitachi, Mitsubishi, and Sony that have played a major role in decision making in EIAJ (Yoshimatsu, 2018).

Role of government in aiding these companies

Conclusion

It is concluded from the above-mentioned analysis that Secom, Toyota, Mitsubishi, Hitachi Corporation and Samsung Electronics. These Corporations use innovative and dynamic strategies, core values and capabilities to make a dynamic image in the minds of the customers. The government plays a major role in every company to boost and enhance profitability globally.

References

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Challenges faced by these companies in the competitive market

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