Daifuku Co. Ltd. SWOT and PESTLE Analysis

Strength

1. Established Japanese company with a diverse product portfolio: Established in 1937, The Daifuku group is an established player in the Materials handling segment. Daifuku has been offerings solutions to respond to the challenges of clients as a manufacturer and integrator. The company provides solutions in a wide range of industries such as Intralogistics (manufacturing and distribution systems), Cleanroom (Cleanroom production line systems), Automotive (Automobile production line systems), Airport (airport technologies), Auto Wash (Car wash machines) and Electronics. The company provides storage, transport, sorting and picking systems to distributors in various sectors such as e-commerce within its Intralogistics segment. In the cleanroom and Auto Wash segments, Daifuku provides cleanroom storage and transport systems to semiconductor and FPD factories as well as car wash machines and related equipment mainly for service stations, car dealers and self-service car washes. The company also provides automobile production line systems to automakers worldwide centered around Japanese companies. In the electronics sector, Daifuku provides high-end industrial personal computers, network related products and circuit boards through its subsidiary Contec Co. Ltd. The company’s solution also caters to the public and other sectors, playing key roles at libraries, hospitals and other facilities which move items from one location to another. Daifuku additionally provides solutions for Manufacturing, IT systems, Wireless Power Supply Solutions and Distribution.

2. Extensive and successful international business expansion: Daifuku Co. Ltd. has a large and extensive global network of companies in locations other than Japan, such as Asia (Singapore, Malaysia, Indonesia, India, Korea, Taiwan, Vietnam, China), Americas (Canada, U.S.A), Europe and Oceania. The company has various production sites in the aforementioned locations to fulfill global demand. The Daifuku group has strategically acquired various companies in various countries to support expansion. Daifuku acquired an Indian material handling equipment manufacturing company, Vega Conveyors & Automation Pvt Ltd., to establish a localized manufacturing network for the booming Indian market. Daifuku also acquired Netherlands-based and Australia-based software companies, Scarabee Aviation Group B.V. and Intersystems Pty Limited, to strengthen its digital solutions for its airport operations segment. The company has made several other acquisitions while expanding its own business units and domains throughout the years to ensure a solid expansion of business. Daifuku has experienced successful global expansions in recent years and holds expertise in expansion and M&As.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Companies are becoming increasingly environmentally conscious: As the cause of climate change is increasingly being owed to the pollution and resource consumption by companies, more and more companies are becoming ‘greener’ in their efforts to reduce their carbon emissions. Material handling systems produce a considerable amount of carbon emissions. Daifuku is aiming for a goal where “material handling systems have zero environmental impact. The company has been promoting and implementing the UN SDGs. Daifuku reduced its water consumption by 30% and has reduced total CO2 emissions from production and office locations by 57.4% as compares to FY2005 reduced waste generated by 47.6% (compared to FY2005). The company has over 60 certified eco-products and has been pushing various environment and biodiversity restoration initiatives in Japan with over 13,000 participants. Daifuku also promotes resource saving through various corporate activities such as collecting cooking oil waste from on-site cafes and employee homes to convert it into biodiesel, which is used for the company’s Hini Arata Kan Shuttle Bus.

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