COMPANY PROFILE -Hirose Electric Group Ltd.
Business Sector :Electric Connectors, Manufacturing
Operating Geography :Japan, Asia, Global
About Hirose Electric Group Ltd. :
The Hirose Electric Group Ltd. is a Japanese company, founded in 1937 which specializes in the manufacturing of electric connectors. It also manufactures flexible printed circuits for smartphones and switches. Headquartered in Osaki, Tokyo, Japan, the company initially was named as Hirose Manufacturing which later changed its name to Hirose Electric and started selling products internationally. Hirose’s international strategy is based on three pillars: a highly skilled labor force, strong capital investment and contact with the product development divisions of client manufacturers throughout the world. In 2022 Hirose Electric has developed a FPC connector which is ideal for connecting displays and sensors in smartphones and wearable devices. The company has earned itself Supplier of the Year and Innovation Award in 2022. Over 5,000 people, work for Hirose Electric as of early 2023.
The mission statement of Hirose Electric is “Hirose will connect wisdom by thinking small, create new value and contribute to the development of a global society. The principle of ‘being small’ represents our aspiration that we should always consider ourselves small and remain a company with great potential.” The Unique Selling Proposition or USP of Hirose Electric is in expanding their global business by supplying high value-added products nationwide. The company continues to expand its business activities, keeping pace with the market advances and satisfying the changing connector needs of companies in Europe, Asia and North America.
Hirose Electric Group Ltd. Revenue :
YEN 1636.7 (’00) million - FY ending 31st March 2022 (y-o-y growth 22.6%)
YEN 1335.4 (’00) million - FY ending 31st March 2021
Competitive Analysis of Hirose Electric Group Ltd.
The SWOT analysis for Hirose Electric is presented below in a matrix followed by the detailed analysis report:
| Strengths | Weaknesses |
1. Remarkable achievements in downsizing capabilities.
2. Advanced technological capabilities that help in pursuing cutting edge and achieve differentiation to customers.
3. Strengthened production capabilities due to co-creation manufacturing.
4. The company has succeeded largely in modularization of production equipment in order to shorten lead times in manufacturing.
5. Advanced marketing that takes the lead and pursues the cutting edge.
6. Co-creation of new products with new customer.
7. Co-creation with connector manufacturer.
| NA |
| Opportunities | Threats |
1. Scope for growth in automotive field.
2. Expansion into new business segments.
3. Expansion in international markets.
4. Massive growth opportunity in Fiber Optic Connectors.
| 1. The threat of smartphones market reaching a state of maturity.
2. Changes in automotive technology leading to usage of fewer connectors.
|
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Detailed SWOT Analysis of Hirose Electric Group Ltd.
Strength
1. Remarkable achievements in downsizing capabilities: Demand for small-sized and lightweight connectors has risen in various field, and each day Hirose strive for a smaller manufacturing. And their efforts have paid off well. Hirose developed the BM29 connector, the smallest board-to-board connector in the world. At an extremely small size of 2.46 mm in width (2 positions) and 1.5 mm in depth, the precision of this connector is on the micro level that humans cannot see.
For micro-connectors, mechanical stress is applied by inserting terminals into small cavities in the plastic component parts. Therefore, this can deteriorate the precision of the connector. Integral molding is manufactured by placing the terminals into the molding die and injecting resin into it in order to form the product. Therefore, the quality of the product is determined by the precision of the molding die. Integral molding is a highly difficult method of manufacturing. However, Hirose has steadily compiled technology and has realized manufacturing for micro-connectors with integral molding ahead of other suppliers. Integral molding is the Hirose Group’s technology for realizing precision small connectors that can maintain a stable quality even with the small size.
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Weakness
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Opportunity
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Threat
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The PESTLE analysis for Hirose Electric is presented below in a matrix followed by the detailed analysis report:
| Political | Economical |
1. Fears of political instability in Japan.
2. Rising tensions between China and Japan.
| 1. A fast-approaching global recession.
2. High rate of inflation in Japan.
|
| Social | Technological |
1. Japan’s ageing working population.
2. Increasing cases of COVID 19 in China and other Asian nations.
| 1. Wiring in vehicles becoming more integrated and simplified, resulting in lower usage of connectors.
2. Increasing trend of electric vehicles and autonomous driving.
|
| Legal | Environmental |
| 1. Strengthening its quality control by responding rapidly to revisions of laws governing chemicals used | 1. The company has been efficient in taking action in response to changing environmental conditions. |
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Detailed Pestle Analysis of Hirose Electric Group Ltd.
Political
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Economic
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Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. The company has been efficient in taking action in response to changing environmental conditions: Following eco-friendly processes has become very important for business worldwide. The Hirose Group is strengthening its quality control by responding rapidly to revisions of laws governing chemicals contained in products and the resulting changes in customer requirements, both of which are becoming increasingly stringent, year on year. During the product design stage, the company select eco-friendly component parts and materials that comply with their Green Procurement Guideline. At every important stage in the development process, they ascertain that the product concerned both satisfies customer requirements and complies with relevant laws and regulations. In addition, the Hirose Group provides environmental education for all staff so that every employee understands the importance of environmental protection activities, and has a clear understanding of their responsibilities when engaging in these activities. Also, necessary competence at each base of operations is decided, and training is planned and carried out to acquire those capacities.
Major Competitors :
- Japan Aviation Electronics Industry Ltd.
- Fischer Connectors
- Yamaichi Connectors
- JST Connector
- Fujitsu
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Hirose Electric Group Ltd. SWOT & PESTLE Analysis Report
1. Annual Report - https://prd-4s-public.s3.ap-northeast-1.amazonaws.com/sys-master/public/h2c/h2a/9130650107934/Part1_20220331_spread.pdf
2. Japan after Abe: Political stability under threat? - https://asia.nikkei.com/Spotlight/The-Big-Story/Japan-after-Abe-Political-stability-under-threat
3. Japan tracks eight Russian and Chinese warships near its territory - https://edition.cnn.com/2022/06/22/asia/japan-russia-china-warships-intl-hnk-ml/index.html
4. Inflation in Japan Raises Pressure on Central Bank to Reconsider Low Rates - https://www.wsj.com/articles/inflation-in-japan-raises-pressure-on-central-bank-to-reconsider-low-rates-11656048171
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Hirose Electric Group Ltd. SWOT and PESTLE analysis has been conducted by Uttiya Majumder and reviewed by senior analysts from Barakaat Consulting.
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