Komatsu Case Study Analysis
Contents Executive Summary 2 Evolution and Strategic Drivers of Komatsu (EME) 3 Organizational Culture 4 Five-Force Analysis: The EME Industry: 5 SWOT Analysis 8 Resource Based Competitive Advantage 8 Financials & Future Course 9 Company on The Right Path 11 References 12
Komatsu, the Japan based earth moving equipment taking on Caterpillar manufacturer has been studied by management students around the globe for years now. This story of David vs Goliath provides us an insight about the strategies followed by David in bringing down Goliath.
Komatsu’s evolution and its strategies were studied in comparison with that of Caterpillar. Responses to each other’s moves in the global earth moving …show more content…
The company had managed to overcome volatile market fluctuations over the last few years, particularly in key construction markets, as a result of aggressive organizational restructuring and corporate mergers and joint ventures.
We can analyze the organizational culture on the basis of the following parameters: 1. Strength/Weakness of the Culture: Komatsu’s culture can be classified as a strong culture because of their strong alignment to organizational values, which makes them respond to stimulus and help the firm operate in a highly efficient manner. 2. Power Distance: Due to hierarchy being a very important aspect of the culture in Japan, the power distance is quite high in Komatsu with a well defined hierarchy though the interactivity between different levels of the organization is also fairly high. The power is also mainly concentrated in the hands of the chairman who maintains a tight control. 3. Individualism vs Collectivism: Again in line with Japanese culture, the organizational culture is more collectivistic with every employee striving towards a common goal. Yet certain individualistic natures are also encouraged to satisfy the intrinsic needs of the workers. 4. Goals and Objectives: The culture of Komatsu underlines the clear goal it