Kawasaki Heavy Industries SWOT and PESTLE Analysis

Strength

1. Wide range of product portfolio: Kawasaki heavy Industries comprises of a huge portfolio which includes a suite of products catering to customer as well as industry demand. Its aerospace systems include main products like aircraft for Japan Ministry of Defense, parts for commercial aircraft, missiles/space equipment, commercial helicopters, jet engines and aerospace gearboxes. In energy system and plant engineering, it has various products like gas engines, power plants, steam turbines, crushing machines, aerodynamic machinery systems, LNG tanks and many more. In ship and offshore structure, its product offerings consist of LNG carriers, LPG carriers, Bulk carriers, Jetfoils and submarines. Under rolling stock, it provides electric train, cars, bullet trains, bogies, passenger coaches and locomotives. In motorcycle & engine segment, it provides motorcycles, utility vehicles, all-terrain vehicles, personal watercraft and many more. In precision machinery and robot, it provides hydraulic components, industrial robots and many more products.

2. Strong technological capabilities across domains: Kawasaki has emerged as a technological leader in its operating industry. In each of the segment that it operates, it has strong core competence which enable it to beat competition and enjoy competitive advantage. In aerospace systems, it has strong technological capabilities as a manufacturer of finished aircraft. It also ensures high quality and productivity through leading edge production technology. Its ability to provide solutions leveraging energy combining gas turbine, steam turbine and waste heat recovery is a strength in energy system. It also enjoys locally rooted sales system leveraging overseas sites. It uses various energy-saving, environmental-burden reducing technologies. The quality provided, state-of-the-art product development expertise and cost-competitiveness of the group remains Kawasaki’s core competence. It has built high tech expertise based on comprehensive industry strengths.

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Weakness

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Opportunity

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Threats

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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. Working towards a low-carbon society by reducing greenhouse gas emissions: Kawasaki works effortlessly towards realization of a low carbon society. It contributes to the prevention of global warming through its various products and manufacturing activities which efficiently use energy. It introduced various energy visualization systems which quickly identify wasteful operations and then try to reduce them to a great extent. Also, with the increasing use of renewable energy, it has been able to achieve reduction in CO2 emissions from its business activities. The company has introduced various energy-saving promotion activities for each of its operating business segment and has successfully implemented various energy-conservation initiatives company wide. At each of its plants, it maintains management standards based on Japan’s Energy Saving Law and works to minimize the energy use. Various energy-saving internal audits are also carried out to promote rationalization of energy use. In FY 2018, Kawasaki’s energy-saving activities could help in reducing annual energy consumption by approx. 360 TJ and annual CO2 emissions by 16 kt. It also works towards reducing CO2 emissions in logistics processes. It tries to utilize renewable energy as much s possible and has been installing solar power generating systems at its plants. It has a total solar power generation capacity of 4,171 kW. The company also seeks to realize a low carbon society by the products that it provides which produce low CO2 emissions in their use.

2. Efforts towards building a recycle-oriented society: Today’s society attaches great importance towards reducing the consumption of natural resources and reducing waste. Kawasaki is no exception to this trend. It promotes resource efficiency in its products and manufacturing processes and tries to effectively utilize and recycle the planet’s finite resources. It maintains landfill disposal and recycling rates at its target levels. The Japanese manufacturer also practices storage management of PCB waste and is advancing the treatment of this waste. Its activities are designed to reduce waste generated through its manufacturing and achieve zero waste disposal in landfills through promotion of recycling. In FY 2018, it reduced waste generated per unit of sales by approx. 5.6% compared to FY 2015. The landfill disposal rate was 0.2% and it could achieve recycling rate of almost 98%. The Company has completely stalled the use of equipment which contain PCBs and considering to work with treatment service providers.

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