Analysis of The Factors Contributing to The Growth of Hitachi Company

Introduction

Hitachi was founded in 1910 as a machine repair shop in Japan. Its mission is to contribute to society through the development of superior, original technology and products. Hitachi is now a Japanese multi-conglomerate and is the eighth largest information technology company in the world by revenue (Hitachi Ltd., 2023).

Analysis of The Factors Contributing to The Growth of Hitachi Company

During the 1980s, Hitachi, Sony, JVC, and Matsushita initiated a joint venture in Europe, marking the first time Hitachi entered the European market. Hitachi Europe's strategy focused on expanding its environmentally responsive infrastructure unit. Projects like the Horizon and Lithuanian nuclear power plant were established as part of this nuclear expansion. Additionally, a rail business project was developed to support transport expansion, alongside ETI/NEDO demonstration projects in the UK aimed at decarbonization (Smith, 2020). Hitachi also concentrated on regional growth in Europe, particularly in the social innovation business sector. The company places a significant emphasis on innovating new businesses, such as Big Data solutions and next-generation T&D solutions.

Hitachi owns 1,056 subsidiary companies and employs over 335,000 people. The core values of the company are harmony, sincerity, and a pioneering spirit. Its vision is to deliver innovations that address society’s challenges while inspiring the world. The main business operations in Europe include information and telecommunication systems, power systems, railway systems, and construction machinery. By 2018, Hitachi expected to achieve an income of 400 billion yen (Johnson, 2019).

Diversification and Global Reach

Hitachi is the largest Japanese company to diversify into numerous markets. The company is involved in aircraft, aircraft engines, automotive systems, components and devices, construction machinery, and defense systems. This diversification allows Hitachi to focus on different product segments in various regions of the world. For instance, the company concentrates on the railway sector in Europe, elevators in China, and automotive parts in North America (Kato, 2021). Such strategic regional focus has enabled Hitachi to establish a strong global presence and adapt to the unique demands of each market.

Historical Context and Government Support

During World War I, as Japan minimized imports, Hitachi had to persuade local big companies to purchase their products. The Zaibatsu, a powerful industrial and financial business conglomerate, was disbanded before World War II due to its excessive influence. In the 1960s, MITI allowed companies like General Electric, RCA, and Xerox to sell their products in Japan, provided they agreed to joint ventures with Japanese firms and shared technology. Hitachi collaborated with RCA during this period (Tanaka, 2018). At that time, IBM was a dominant force in Japan, but the government did not want it to overshadow local companies. Thus, the government offered favorable terms to Hitachi's customers through the government-sponsored "Japan Electronic Computer Corporation." Furthermore, the Japanese government played a vital role in developing computer technology, investing 22 billion yen in the sector (Yamamoto, 2022).

Conclusion

In conclusion, Hitachi's growth can be attributed to its strategic expansion into diverse markets, a strong focus on innovation, and significant government support during critical periods of its history. The company's ability to adapt to regional demands and its commitment to addressing societal challenges through innovative solutions have established Hitachi as a global leader in technology and infrastructure (Hitachi Ltd., 2023).

References

Hitachi Ltd. (2023). Company Profile. Retrieved from https://www.hitachi.com

Johnson, A. (2019). Hitachi's Strategic Vision and Global Impact. Business Review Journal, 12(3), 45-58.

Kato, H. (2021). Diversification Strategies in Japanese Multinational Corporations. International Business Studies, 8(2), 101-115.

Smith, L. (2020). The Expansion of Japanese Companies in Europe. European Business Quarterly, 15(4), 33-47.

Tanaka, Y. (2018). Joint Ventures and Technological Collaboration in Japan. Journal of Economic History, 22(1), 89-102.

Yamamoto, T. (2022). Government and Industry Collaboration in Japan's Technological Development. Technology Policy Review, 19(5), 72-85.