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Komatsu SWOT & PESTLE Analysis

ID : 52182253| Apr 2019| 16 pages


Business Sector :Equipment manufacturing

Operating Geography :Asia, Japan, Global

About Komatsu :

Komatsu Ltd. founded on May13,1921, is a Japanese multinational company, operating in sale and manufacture of machines required for construction and mining, utilities, forest equipment as well as for industrial machinery. Komatsu was first started in what is known today as Komatsu City in the Ishikawa Prefecture in 1921. From that day it has now grown to become a Japan-based global company that takes pride in adhering to Quality and Reliability. The company is headquartered in Tokyo, Japan and is a part of the Komatsu Group which has 266 other companies under its umbrella. The company employs around 59632 employees across the world including all the 227 consolidated subsidiaries of the Komatsu Group as of early 2019.
Komatsu’s USP or unique selling proposition lies in being the world’s second-biggest earth-moving equipment maker by revenue, which has made significant progress in deploying robotics and other technology in construction. Komatsu’s mission statement reads “To partner directly with customers to enable them to achieve zero harm, the highest production, and the lowest lifecycle cost for their mining operations, while making every customer a reference. Komatsu’s vision statement reads “To be a world-class service company delivering the most reliable and productive products, systems, and solutions that solve mining's toughest challenges.”

Komatsu Revenue :

JPY 2,501.1 billion – FY ended March 31st 2018 (Y-o-Y growth 38.7%)

Competitive Analysis of Komatsu

The SWOT analysis for Komatsu is presented below:
1. Healthy product portfolio across construction, mining, utility and industrial machinery
2. Globalized sales and operations functions
3. Komatsu’s connected GEMBA through IOT
1. Weak business results – declining sales and profits
1. Construction sector to see huge upsurge of growth
2. Growth in mining sector
1. Social problems – labor shortage
2. Environmental concerns
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Detailed SWOT Analysis of Komatsu



1. Diversified product and services portfolio: Komatsu Limited has a broad spectrum of product assortment across sectors like ‘Construction, Mining and Utility Equipment’ and ‘Industrial Machinery and others’. The former covers Hydraulic excavator, Wheel loader, Bull dozer, Dump truck, Forklift trucks, recycling equipment, Forest machines and Tunneling machines. The latter division oversees Metal forging and stamping presses, Excimer lasers, Machine tools, Thermo-electric modules and Temperature-control equipment for semiconductor manufacturing. Such a huge diversified portfolio makes Komatsu a one stop solution for OEMs and lends it a great competitive advantage.

2. Globalized sales and operations functions: Komatsu Ltd. is having market presence in many regions along with 203 distributors across North America, Japan, Europe, Latin America, CIS, China, Asia, Oceania, Middle East and Africa. There are 27 assembly & manufacturing plants that are spread across East Asia, North America, Latin America, India, Australia and Europe. Number of Operations in the Manufacturing Operations of Construction, Mining and Utility Equipment amount to 93 and sales Sales Operations of Construction, Mining and Utility Equipment equal to 100. Sales by region to outside customers is very well diversified with sizeable revenue contributions across North America (+59.1%), Latin America(+55.1%), China(+69.2%), Oceania (+72.2%), Africa(+73.4%), Asia (+44.5%) and other like CIS, Middle East and Japan all seeing commendable growth in FY2017. Thus Komatsu has massive market risk hedging opportunities towards regional disturbances and better responsiveness towards market demands as per the requirement of various countries.

3. Komatsu’s connected GEMBA through IOT: This Japanese Multinational Corporation’s objective is to offer growth strategies based on innovation. Komatsu connects its plants, distributors and customers to improve the value generation in its products through innovation, automated and unmanned operation aimed at enhancing safety and environmental performance though solutions like KOMTRAX (Komatsu Machine Tracking system) for construction and utility equipment and the KOMTRAX Plus for mining equipment, SMARTCONSTRUCTION & AUTONOMUS HAULAGE SYSTEM which are basically intelligent Machine Control models designed to streamline and automate construction for driverless dump trucks and other systems. The overall objective of this construction conglomerate is to help customers overcome GEMBA (workplace) related issues. Komatsu nurtured this workplace capability through TQM (Total Quality Management) over the years, thereby enhancing competitive manufacturing.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.


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


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


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

Major Competitors :

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

Komatsu SWOT analysis has been conducted by Anindhya Sadhu and reviewed by senior analysts from Barakaat Consulting.
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