Hitachi SWOT and PESTLE Analysis

Strength

1. Strong presence in global market in diversified products and balanced revenue streams: The company has strong presence world-wide and good top of the mind recall in consumer electronics and technology goods. It also has good market share and presence in high speed rail technology, ATM services and nuclear power technology where it is handling large projects world wide

2. Dedication to the spirit of craftsmanship and training staff with sold technical skills: it gives great focus on training and efficiency of its 335,244 employees as part of its plan to expand the range of digitised products that support innovations and its increasing focus on investing in globally competitive products. People are recruited from various industries and strongly encouraged to go back to basics. The various training and employee benefits and remuneration processes are making it famous among aspiring young workforce. It hires people on the lines of the founding concepts of harmony, sincerity and pioneering spirit and prioritizing values over technical skills.

3. Strong R&D focus esp. on AI technology and also in IPR: it has a global centre for social innovations which focus on developing services in keeping with the needs of customers in each region at front employing 550 people over North America, Europe, China, Asia and Japan. There is a Centre for Technology Innovation which is establishing global no. 1 technologies employing 2050 people in Japan and another Centre for Exploratory Research.

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Weakness

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Opportunity

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Threat

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Political

1. Adverse political developments leading to business uncertainty:The deterioration in the security situation and political instability in several regions across the globe is leading to economic uncertainty. Many countries in the Middle East and the North Africa region are going through civilian unrest, uprisings and impacted by terrorist activities. Yemen, Syria, Iraq, Egypt, Libya have been severely impacted by civil wars and terrorism and the recent blockade of Qatar by the other members of the GCC also complicates the political stability of the region. There have been terrorist attacks across Europe including Germany, France, Belgium and UK over the last two years. Hitachi’s potential losses from the above could result in not being able to conduct or expand business operations effectively in the above regions.

2. Hitachi is based out of Japan, which has cordial relations with most of the countries: Japan the industrial and technology powerhouse of Asia has cordial relations with most of the countries globally except for China. Hitachi being a flagship Japanese organization thus enjoys the country’s diplomatic support, which helps it to secure major government contracts globally. Government companies are undergoing major industrial transformation and Hitachi has good business potential to participate in the projects.

Economic

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Social

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Technological

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Legal

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Environmental

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