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Fujitsu SWOT & PESTLE Analysis

ID : 52130753| Sep 2020| 15 pages


Business Sector :Information Technology (products and services)

Operating Geography :Asia, Japan, Global

About Fujitsu :

Fujitsu is a pioneer in Information and communication technology (ICT) industry, with a presence in over 180 countries. Established in 1935 as a telecommunication equipment manufacturer, it has gradually ventured into the manufacturing of mainframe and personal computer systems and electronic components for devices. It holds about 97000 patents in the area of ICT. Fujitsu’s IT services business holds number one position in Japan and is on fifth spot, globally in terms of market share. Fujitsu has a stellar track record in providing multi-pronged services alongside the development, manufacture, sales and maintenance of the large-scale, cutting-edge, high-quality products and electronic devices that make these services possible. Headquartered in Tokyo, Japan, Fujitsu employs 140,365 people worldwide. Fujitsu has been selected for incorporation in the Dow Jones Sustainability World Index (DJSI World), the world's leading Socially Responsible Investment (SRI) index for the 17th time.
Fujitsu Group’s USP or unique selling point lies in being Japan’s no. 1 IT service provider and the fifth largest in the world. It is also amongst the World’s top10 providers of servers holding vast number of patents globally. Fujitsu Group’s corporate vision statement reads
Through our constant pursuit of innovation, the Fujitsu Group aims to contribute to the creation of a net-worked society that is rewarding and secure, bringing about a prosperous future that fulfills the dreams of people throughout the world.” Fujitsu’s mission statement reads “Foster greater opportunities for inclusion that result in long-term business relationships and increased volume of participation."

Fujitsu Revenue :

¥ 40.98 billion – FY ending 31st March 2018 (y-o-y growth (negative) - 0.8%)
¥ 41.32 billion – FY ending 31st March 2017

Competitive Analysis of Fujitsu

The SWOT analysis for Fujitsu is presented below:
1. Market leader in ICT services Intellectual property and R&D
2. High market share in Japan by customer industry
3. Intellectual property and R&D
4. Diverse product portfolio
5. Impressive Client Base and ability to have long term customer relations
1. Large market size
2. Lower Brand perception when compared to some global competitors
3. Dependency on domicile markets
1. Growing economy and digitalization
2. Innovation in new products and technology
3. Japan’s ICT market is posed for exponential growth
4. Growing through strategic alliances and joint ventures
1. Intense Competition both in domestic and international markets
2. Budding Startups in the IT space
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Detailed SWOT Analysis of Fujitsu



1. Market leader in ICT services: Fujitsu is the fifth largest Information Technology services provider in the world, and the biggest in Japan. The Company is also the World’s top10 providers of servers. This Japanese technology behemoth was coroneted the World’s Most Admired Companies‘ for the fifth consecutive year by Fortune in 2017, as well as well as 28th in Interbrand's 2015 "Japan's Best Global Brands". With the presence in over a 100 countries and a workforce of over 140000 people, Fujitsu is a giant in the Information and communication Technology (ICT) industry. The company is also the industry leader in the domestic market with high revenues, generating 2591.5 billion Yen of business from Japan alone which accounted for approximately 66.8% of its revenues in fiscal 2017.

2. High market share in Japan by customer industry: Fujitsu’s IT services markets are spread across a wide industry spectrum. It holds No. 2 position in the Finance (Banking and Securities/ Insurance) domain with approx. 10.9% market share. In all of the following sectors - Manufacturing, Distribution (Retail/ wholesale and Transport), Communication/ Media services, Healthcare services and Public sector, Fujitsu commands an undisputed No. 1 position with 8.9%, 13.5%, 11.7%, 16.4% and 25.1% respectively as per the Company’s 2017 annual report.

3. Intellectual property and R&D: The company holds about 97000 patents as intellectual property globally and has a dedicated R&D center for innovation. The R&D centers, also known as Fujitsu Laboratories, are one of their kinds. The average R&D expenditure is around 230 billion Yen per year. The R&D Expenditure in fiscal 2017 was 158.6 billion Yen. Fujitsu Laboratories is pushing R&D forward with the pivotal focus on Digital Co-creation with customers. It is currently concentrating on eight emerging technologies that will lead the world, viz. AI, Data management systems, ICM (Information and Communication management) in the 5G space, System Engineering, digital security systems, ses computing, new materials/devices and applied innovation research.

4. Diverse product portfolio: The business of Fujitsu is centered on three business segments – Technology Solutions, Ubiquitous Solutions and Device solutions. The technology solutions earns approximately 65.6% of the Group revenue, followed by ubiquitous solutions which earn 21.5% of the pie and the remaining 11.4% is contributed by device solutions.
The Technology solutions segment provides solutions/system integration services focused on information system consulting and integration, front-end technologies (ATMs, POS systems, etc.), System integration (system construction, business applications) and infrastructure services centered on outsourcing services (datacenters, ICT operation/management, SaaS, application operation/management, business process outsourcing, etc.) as well as System Platforms offering products such as servers and storage systems which form the backbone of information systems, along with network products such as mobile phone base stations, optical transmission systems, and other communications infrastructures. Fujitsu has a wide and unique spectrum of offerings here which include sophisticated and highly reliable mainframe and UNIX servers that support the backbone systems of corporations and that are equipped with proprietary CPUs—Fujitsu being one of the few global ICT companies with the technology to manufacture its own processor chips.
Under Uniquitous Solutions, Fujitsu offers PCs of spectacular quality and high added value. Their notebook PCs are manufactured in entirety by Shimane Fujitsu Limited. This Japanese conglomerate also offers lightweight, thin tablet PCs with high-spec, water- and dust-resistant features. Under mobile phones and tablet PCs, Fujitsu offers a variegated lineup of imperial-quality models with advanced functions, including smartphones with cutting-edge, high-speed CPUs, and the Raku-Raku Phone Series with easy-to-read displays, clear-sounding speakers, and intuitive functionality, as well as tablet PCs featuring large, full high-definition screens and large battery capacity.
The device solutions business segment designs and manufactures semiconductors which include ASICs/COT, ASSPs, Semiconductor packages, batteries, structural components (relays, connectors, etc.), optical transceiver modules, printed circuit boards and Ferroelectric RAM (FRAM), with wide-ranging expertise focusing on imaging, wireless, automotive and security applications.

5. Impressive Client Base and ability to have long term customer relations: Varied and wide customer base from different parts of the world gives Fujitsu an edge over its competitors. With a varied spread of products and service, Fujitsu creates strong partnerships with customers across all industries around the world. Fujitsu has collaborated with customers to co-create solutions to find innovative solutions to their business challenges. Some of their noted clients are Kimplas Piping Systems, Nippo, Pete Lion and Sons, AKG Group, ST Works, Virgin Money, San Carlos Clinical Hospital, Fukuoka Financial Group, Inc., INESA (Group) Co., Ltd. The company has invested in building long lasting relationships with customers to earn their trust and value over the years.


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This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

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Copyrights and Disclaimer
Fujitsu SWOT and PESTLE analysis has been conducted by Soumya Surya Adhikari and reviewed by senior analysts from Barakaat Consulting.

Copyright of Fujitsu SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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