Komatsu Versus Caterpillar p2gr

Komatsu versus Caterpillar Komatsu vision was to be among the top in the world and it declared a bold strategic intent. The story of Komatsu versus the world leader the American Caterpillar Tractor Company reveals how a smaller company can take-on a much larger adversary successfully. Caterpillar a world leader wanted to monopolize the Japan market. The main

competitors they faced within the Japanese market were Komatsu and Mitsubishi. Komatsu was especially dangerous to Caterpillar as they were the second largest company worldwide. Due to this danger Caterpillar decided to penetrate the Japanese market through a t venture with Mitsubishi. With the threat of the Caterpillar/Mitsubishi venture taking place Komatsu decided on revitalization of the company. Komatsu in this period was going through bad times yet they counter attacked boldly. Komatsu announced an aggressive strategic intent – the battle cry of ‘Maru-C’ or ‘Encircle Caterpillar’. Rather than face Caterpillar frontally they did a pincer movement by setting up assembly plants in places like Brazil and Mexico. They also

Encircling maneuver

established business relationships with multiple countries – thereby encircling Caterpillar. A stunning win over its seemingly invincible American opponent was achieved. The success made Komatsu a world power in earth-moving machinery. An interesting point that surprised many was that Komatsu‟s strength and energies came from an organizational culture that is known to be non aggressive and harmonious - typical of the Japanese culture and heritage. Canon Canon rallied its organization with the war cry ‘Beat Xerox’.It set an objective

to manufacture a small home-copier priced reasonably as against Xerox large expensive machines. Conclusion – an organization can use different ways to pursue its Vision – leadership, communication, empowerment, culture and values. Strategic intent is yet another way especially when the situation is adverse. All these great organizations and their leaderships had faith in themselves.

Hamel and Prahalad in their book “Competing for the future” – defined strategic intent as „ambitious and compelling‟. A strategic intent mobilizes the entire organization effort in the right direction thru‟ the key milestones. NEC versus GTE (now Verizon) NEC (Nippon Electric Company) a much smaller Japanese company overtook and repulsed a much larger American company GTE (now Verizon). NEC set their strategic intent as „computers and communication‟ or „C&C‟. They forecasted that five to eight years ahead these two disparate technologies will merge and innovative products would flow out from this fusion

such as mobile communication devices that have captured the markets. They developed the appropriate strategic architecture (road map) that guided their strategic moves to acquire appropriate companies and technologies to fill their own gaps.

Vision To become a customer-oriented, world-class manufacturer of buckets and blades

Mission 1. 2.

To hear and understand customers‟ needs, and provide them value-added products To expand our distribution network further to reach more customers and broaden our product range

1. Basic Policy (Management Goals) We at Komatsu define our corporate value as the total sum of trust given to us by society and all stakeholders. To increase this corporate value, we have consistently worked on management tasks by upholding the following two management goals. 1) To maintain top-level profitability and financial position in the industry and enhance our position in the global marketplace, especially in the Greater Asia region. 2) To continue management while keeping market value in mind, which reflects the amount of trust given to us by society and shareholders/investors.

3. 4.

Our vision is a world in which all people's basic requirements - such as shelter, clean water, sanitation and reliable power - are fulfilled in a way that sustains our environment. Our mission is to enable economic growth through infrastructure and energy development, and to provide solutions that protect people and preserve the planet.

5. Xerox Mission Statement: 6. "Our strategic intent is to help people find better ways to do great work -- by constantly leading in document technologies, products and services that improve our customers' work processes and business results."

7. 8.

Mission To provide optimal value through marketing innovation that enhances security and peace of mind and s creativity in all areas of life, work and society.

Vision To be a group of service creation companies that practices the principle of customer focus with a global perspective.

Priority Strategies

1. 2. 3. 4.

Expand the market shares of Canon products Diversify business Evolve into a service company Further group management innovation