TABLE OF CONTENT 1. Executive summary2 2. Company Background2 3. Crirical Success Factor’s Analyses of Toshiba5 3. 1. An innovative and talent Chiel Executive Officer5 3. 2. Business Strategies6 3. 3. Bring “Innovation” to customer10 3. 4. Diversity of products11 3. 5. Market Position12 4. Insight13 5. Conclusion14 6. References15 1. Executive summary Electronic products have the long history together with human’s daily activities. At the beginning with the basic products such as: bulb, radio, television, washing machine, refrigerator … the life standard was shifted to a new level.
After that, the first personal laptop was produced in 1985; it set a basic step for the developing of high technological products. Gradually, getting together with the developing of economies, the human’s demand about hight technological products is getting larger so there are so many companies founded to satisfy these demands. Some of current famous companies are Samsung, LG, Sony, Toshiba … Today electronic industry has become well-built and it has offered a broad portfolio of products in the global economy, in many countries with many kinds of goods to serve diversified consumer’s demands.
Nowadays, the long-standing history combines with the right strategies of the managements; Toshiba is the 8th Most Admired Electronics Company for 2009. In this assignment, firstly, I will give information about the background of Toshiba. Then, I will analyze factors that contribute to Toshiba’s success such as Talented Chief Executive Officer, Business Strategies, Leading Innovation, Diversity of Products and Significant Market Position. In the conclusion, I would like to give my insights about the reasons make Toshiba successful. 2. Introduction
Toshiba Corporation is one of Japan’s oldest and largest producers of consumer and industrial electric products in the world. Toshiba was founded by the merging of two companies in 1939. The first company, Tanaka Seizosho (Tanaka Engineering Works) was established inventors in 1875 by Hisashige Tanaka who was one of Japan’s greatest and he was known as a genius of mechanical wonder. This company also was Japan’s first manufacturer of telegraphic equipment. In 1904, its name was changed to Shibaura Seisakusho (Shibaura Engineering Works).
During beginning of 20th century Shibaura Engineering Works became a major manufacturer of heavy electrical machinery and had a world industrial power. The second company, Hakunetsusha, was established in 1890 and was Japan’s first producer of incandescent electric lamps. It diversified into the manufacture of other consumer products and in 1899 was renamed Tokyo Electric. From 1940 to 1975 During this period, Toshiba brought a lot of “first” for the world. They manufactured Japan’s first fluorescent lamps in 1940 and completed Japan’s first radars in 1942.
Then, Toshiba completed Japan’s first TV broadcast transmitters and microwave relay systems for television in 1952. In 1954, Toshiba developed the digital computer which will be the firt step to take Toshiba’s involvement in the personal computer industry. Toshiba later brought entertainment to a new level with the introduction of Japan’s first transistorized televisions. In 1970, Toshiba introduced the world’s first color video phone and the world’s first expanded IC color TV the year later. In 1975, the company celebrated its first 100 years. From 1976 to 1990
Toshiba launched the first Japanese word processor in 1978, in the same year they formally confirmed “Toshiba Corporation” as its official name. The company once again introduced several innovative products in different fields including the introduction of the world’s first laptop personal computers in 1985 that brought the computing world into a new age. From 1991 to 2000 In 1995, Toshiba introduced the sub-notebook personal computers and developed the DVD format high-density optical disk. The format soon became standardized and Toshiba released the first of its DVD-ROM Optical storage devices.
From 2001 to 2008 Toshiba commercialized the first HDD and DVD video recorders which became an excellent multimedia experience for home, business and personal users. In collaboration with SanDisk, Toshiba developed the 8-gigabit flash memory chip. Sales in 2007 went up to a number of 60 million notebook PCs. In 2008, Toshiba dropped its HD DVD format in favor of the Blu-ray Disc devices and formalized intentions to release dependent players as well as Blu-ray drives for PCs and notebooks bringing multimedia experience to a new level. 2009 and Beyond
In January of 2009, Toshiba acquired the HDD business of Fujitsu so they extended its computer business. Toshiba continued to strive to design and develop new and innovative products and technologies in the purpose of making people’s lives more convenient and enjoyable. Nowadays, under Chairman of the Boards of Director – Atsutoshi Nishida, Toshiba has become a brand name that most people are familiar with. Even among its strong competitors, Toshiba still holds a strong influence in the ever-evolving industry, leading its peers in the world of electronic innovations.
Toshiba was ranked by Fortune Magazine as the 8th Most Admired Electronics Company for 2009 and one of the Top 100 Global Companies for 2008; Toshiba’s annual revenues exceed $76 billion. This cooperation is also a world leader in high technology, a diversified manufacturer and marketer of 4 main business segments which are Digital Products, Electronic Devices & Components, Social Infrastructure Systems and Household Appliances. 3. Critical Successful Factors 3. 1 An innovative and talented Chiel Executive Officer – Atsutoshi Nishida Atsutoshi Nishida was born in 1943.
In 1968, he graduated from Waseda University with Political Science and Economics major. Then, he jointed Toshiba Corporation in 1975. After 30 years worked for Toshiba, he became Representative Executive Officer and President and Chief Executive Officer and Director in 2005. Until now, Atsutoshi Nishida is Chairman of the Boards of Director. Atsutoshi Nishida is a different type of president. Many Toshiba’s chiefs have been engineers. However, Atsutoshi Nishida who is holding an important role in Toshiba Corporation today was pursuing a doctorate in the history of German political thought when he decided to join Toshiba in 1975.
Whereas most chiefs started their careers in Tokyo, Atsutoshi Nishida was hired from an affiliate in Tehran, Iran. Meantime, Toshiba like many of its Japanese rivals was changing to a new type of leader. In the past, Japanese manufacturers thought the most important quality for their executives was a deep knowledge of their main operations. Now, they are finding people like Mr. Nishida who have shown they know how to manage. Nishida said that his main task would be getting Toshiba to develop faster.
Indeed, for the past few years, the electronic-devices division, which made emiconductors and displays, has seen sales rise an average of about 1. 3% a year. Nishida boosted that rate to an annual average of 8% through March 2008. Similarly, he targeted a minimum of 7% average annual sales growth in the next few years in the digital-products division that made televisions, PCs and DVD players. Actually, that division has grown an average of 3. 6% a year. He also developed outside manufacturers to produce 60% of Toshiba’s PC units, up from 20% previously, and shifted the ompany’s personnel and capital to make a few high-end models. As a result of those steps, the computer business moved to a profit in a year. Nishida warned that although boosting profit and shareholder returns is important, he has to balance that with the interests of his employees and customers. He assumed unlike an America Company, Toshiba does not change their strategy or policies depending on who is president. Toshiba will try to watch the trends and get ahead of them but they cannot fall behind. In genernal, Atsutoshi Nishida is one of the first persons who contributed and built up Toshiba Corporation.
As a leader and a member of Toshiba, he has been bringing success, fame and profit to Toshiba. 3. 2 Business Strategies Toshiba Group’s basic management policy is based on four concepts [pic] Toshiba Business Strategies Model (http://www. toshiba. co. jp) 3. 2. 1 Realize sustained growth with high profit First policy, Toshiba tended to shift management direction further toward growth and motivated proactive management through strategic allocation of resources. Toshiba has the digital products business, the electronic device business and the social infrastructure business as their main business domains and as their core businesses.
Therefore, they want to achieve a hight level of profitabilty and stability. Toshiba developed the competitiveness of their digital products, as well as continue with high growth and high profitability in their electronic devices, and they tried to be further accelerating growth. And also for the social infrastructure group, which has been positioned as a stable growth and stable profitability business, they would like to move forward so that they would be able to get high growth rates through their overseas businesses. 3. 2. 2 Maximize multiplier effect of innovations
Second policy, Toshiba wants to enhance global competitiveness through Process Innovations and Value Innovations Innovation Activities In the second half of 2006, Toshiba Group adopted a new corporate slogan; “Leading Innovation” which was extended to each aspect of their business. Through process innovation, they can consolidate their competitive power. By developing new technology and products they are pioneer and by producing new value for our customers, they shape Toshiba Group that is alive with creativity. Two Innovations to Realize Sustainable Growth [pic] i cube
In “i cube” program, they are promoting innovation in development, innovation in manufacturing and innovation in sales, along with the multiplier effect of applying these advances throughout their operations. They want to go beyond conventional methods of incremental improvements. “i cube” is the means to empower everybody in Toshiba, so that they can develop their capabilities to the full, and bring a sense of urgency to their work and to the development of business processes that add to the bottom line. 3. 2. 3 Execute management with Corporate Social Responsibility
Besides making profit, Toshiba also prioritize human life and safety, and legal compliance in all business activities, and act as a “corporate citizen of planet Earth” in responding to social and environmental concerns. Toshiba Group’s Corporate Philosophy emphasizes respect for people, creation of new value, and contribution to society. The Group slogan – “Committed to People, Committed to the Future. TOSHIBA. ” – expresses the essence of their corporate philosophy. They recognize that it is their corporate social responsibility (CSR) to put their philosophy and slogan into practice in their day to day business activities.
In doing so, they accord the highest priority to human life & safety and compliance. Commitment to People They attempt to fulfill the needs of all people, especially their customers, shareholders and employees by implementing with corporate strategies while carrying out responsible and responsivebusiness activities. As good corporate citizens, they actively contribute to further the goals of society. Toshiba based on their total commitment to people and to the future are determined to help create a higher quality of life for all people and to do our part to help ensure that progress continues within the world community.
Commitment to the Future By continually developing innovative technologies centering on the fields of Electronics and Energy, we strive to create products and services that enhance human life, and which lead to a thriving, healthy society. We constantly seek new approaches that help realize the goals of the world community, including ways to improve the global environment. 3. 2. 4 Develop People with a Global Perspective Toshiba try to make a global presence by developing well-rounded people with a global perspective, able to drive innovation and to include diversity and different cultures. 3. Bring “Innovation” to customer Innovative products are the fundamental policies of Toshiba Corporation to achieve success in harsh competition of the target market. That is the reason the slogan of Toshiba Corporation is “Leading innovation”. Simple visual can be very powerful in creating brand identity. This slogan gives us a look that “Innovation” is one of critical factor success of Toshiba. Indeed, it is justified by many “world first” products the company released. In 1970, Toshiba introduced the world’s first color video phone and the world’s first expanded IC color TV the year later.
Entertainment was brought into a new level by those inventions. Also, this time Toshiba celebrated its first 100 years. After that, Toshiba introduced the world’s first laptop personal computer in 1985. This is the most improtant invention of Toshiba. The world computer was shifted to a new age. It changed perception’s people about computer. Before this invention, people used to think that compuper was something with complex structure, large size, difficult to use. But now people could expand their computing beyond four walls, bring computer wherever they want.
Then in 1991, first color monitor in a laptop was launched by Toshiba. People could enjoy the world of color in their laptop. It brought the convenience to photographers, designers … Nowadays, Internet has become an essential part in our life, especially in our social communication. In 2001, Toshiba produced the world’s first wireless laptop, it extremely opened a new world for internet. Everybody can work with internet everywhere. Moreover, in 2009 Toshiba continued introducing the world first ultraportable laptop with 512 SSD. We can say that Toshiba is leading innovation. That is the reason Toshiba achieved success. . 4 Diversity of products Toshiba is one of the world’s leading and most diversified product providers. The company is well diversified in terms of the markets it serves. Its operations were focused on digital products, social infrastructure systems, electronic devices, and home appliance businesses. Toshiba’s digital products include cellular phones, LCD TVs, HDDs, DVD recorders, digital audio players, LCD projectors, notebook personal computers, personal digital assistants, business telephone systems, servers, electronic cash registers, multi-function peripherals, and automated ID systems.
The company’s social infrastructure system business offerings include nuclear, thermal and hydroelectric power plants, transmission distribution and industrial systems, environmental systems, and medical systems. It also serves the various markets with its software services, manufacturing, distribution and services, media and telecommunications, banking, securities, and insurance and electronic government systems solutions. The electronic devices business includes the operations of semiconductor, display devices and components control center, and display technologies.
Its portfolio includes NAND flash memories (a type of non-volatile storage technology that does not require power to retain data), LSIs(Large Scale Intergration), display drivers, analog ICs, image sensors, SSDs, DMFC for mobile devices, DNA chips, photo catalysts, Klystrons, X-ray tubes, molybdenum products, DNA chips, TFT LCDs and organic LED displays. Toshiba provides a wide range of home appliances covering refrigerators, washing machines, microwave ovens, vacuum cleaners, electric irons, rice cookers and automatic dish washer, lighting and lighting systems, air conditioning products, and water heating systems.
In addition, the company is also into integration services, real estate, distribution services, and application service provision. This broad product portfolio has provided the company with diversified revenue streams. In 2009, the company generated about 34. 3% of its total revenue from digital products; 33. 3% from social infrastructure systems, 18. 4% from electronic devices, 9. 4% from home appliance businesses, and other contributed the remaining 4. 6%. Broad product portfolio across several industries provides the company with cross selling opportunities and diversified revenue base. . 5 Significant market position Toshiba had a strong market position in various markets they took part in. They were among the major players in the global PC market, mobile market, semiconductor manufacturing and power generation infrastructure markets among others. In 2008, Toshiba was the second leading player in the NAND Flash market with a share of 28. 1%, compared to 25% in 2007. In the LCD TV segment, their market share went up to 8% in 2008 from 4% in 2004. Toshiba had a market share of 4. % in the worldwide PC market while competing with Hewlett-Packard, Acer, and Dell. Toshiba had a 10% market share in the notebook market. In addition, the PC market share of the company increased to 5. 5% during first quarter of 2009, compared to 4. 3% in the same period during 2008. Toshiba also was one of the prominent providers of semiconductors; Toshiba earned a share of 4. 2% of the global semiconductor markets in 2008. In the Japan’s mobile phone market, Toshiba is one of the leading players with a market share of 7% and competes with Sharp, Panasonic Mobile, and Fujitsu.
Toshiba also had a strong market share in the power generation infrastructure in 2008. Toshiba gained a share of about 40% and 60% in the worldwide and the US nuclear reactor markets respectively. In the US steam turbine and generator market, the company was also a leading player, competing with Siemens, Fuji Electric Systems, and General electric. Strong market share in various segments strengthens the brand image of the company and makes its entry into new product segments and markets easier. 4. Insight
I think one of the most important factors for success of Toshiba is to bring “innovation” to customers. Nowadays, high-technology is an essential part in our life which helps us in many areas like working, moving, housework, medical … Toshiba knew this from Toshiba was estalished in 1939 so they focused on researching and developing high-technology then step by step Toshiba affirmed their valid position in the world high-techology and created belief in customer minds by introducing many kinds of high-technology products with high quality.
Now they became one of Japan’s oldest, largest and leading producers of consumer and industrial electric products in the world (the 8th Most Admired Electronics Company for 2009 and one of the Top 100 Global Companies for 2008 ranked by Fortune Magazine) In addition, business strategy is also an important factor for Toshiba’s success. Toshiba had specific policies and follow them flexibly. Four concepts they has been following are Realize sustained growth with high profit, Maximize multiplier effect of innovations, Execute management with Corporate Social Responsibility, Develop People with a Global Perspective.
Firstly, Toshiba tried to maintain what they had built in the world market then they develop their strong point (innovation). After that, they convinced cutomers by concerning about human life in management and develop people with different cultures. Besides that, Toshiba also concentrated on diversity of products to meet demands of any type of customer, especially in electric area. Toshiba created the amount of loyal customers then based on the loyalty of customers, they developed diversity of products.
For example, customers buy a washing machine and they feel it work very well then when they buy another products like television, air condition … they will think about products of Toshiba. In general, I think that in order to achieve success today, Toshiba combined many factors flexibly and efficiently in any economic circumstances. And the most important factor is the way Toshiba bring up belief of customers by producing innovative and high quality products from Toshiba was established. 5. Conclusion
In the competitive market, there are many ways to succeed and many corporations have been successful with their business policy and strategy. However, many of them have some of common points like efficient management, good business strategy, quality products, professional staff … Also; Toshiba achieved success with talented CEO, specific good business strategy, leading innovation, diversity of products, strong marketing position… Words: 3091 6. References 6. 1. Book references Gareth R. Jones, Jennifer M. George, Charles W. L.
Hill, 1998, Contemporary Management, McGraw-Hill Eduacation, New York, p. 188 William O. Bearden, Thomas N. Ingram, Raymond W. LaForge, 2004, Marketing – Principles and perspectives, McGraw-Hill Eduacation, Fourth Edition, p. 144 Robert L. Cutts, 2002, Toshiba – Defining a new tommorrow, The Penguin Group, London. David Jobber, 2010, Principles and Practice of Marketing, McGraw-Hill Eduacation, Sixth Edition, New York, p. 476, 706, 707 W. Mark Fruin, 1997, Knowledge works: managing intellectual capital at Toshiba, Oxford University Press, Inc, New York, p. 125, 208
Hall, Kenji, Burrows, Peter, 12/19/2005, Why Toshiba is clamming up, Business Week – McGraw-Hill Companies Inc 6. 2 Internet References National Accounts – Form a Partnership with the Leader in Document Imaging http://copiers. toshiba. com/usa/about/national-accounts. html About Toshiba – History http://www. toshiba. co. jp/worldwide/about/history. html#Y2000 Toshiba Storage Device Division [pic][pic] http://sdd. toshiba. com/main. aspx? Path=Company/ Toshiba Corp. http://proquest. umi. com. libproxy. nlb. gov. sg/pqdweb? did=886673771=1& Toshiba’s Toughest Sell – By Kenji Hall http://www. businessweek. com/