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Analysis Of The Factors Contributing To The Growth Of Hitachi Company

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Hitachi was found 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 info technology company in the world by revenue.


During the 1980s, Hitachi, Sony JVC and Matsushita started a joint venture in Europe and it was the first time where Hitachi stepped into the European’s market. Hitachi Europe strategy was an expansion in the environment responsive infrastructure unit. Horizon and Lithuanian nuclear power plant project were formed in terms of nuclear expansion. Rail business project was formed in terms of transport expansion and support of ETI/ NEDO demonstration projects in UK as decarbonisation expansion. Hitachi also focuses on regional expansion in Europe and have market entry in social innovation business. Hitachi also has a focus on innovating of new businesses such as Big Data solution and next generation T&D solutions.

Corporate organisation

Hitachi owns 1056 subsidiary companies and has more than 335 000 employees. Their values are harmony, sincerity and its pioneering spirit. Its vision is to deliver innovations that answers the society’s challenges while inspiring the world. Its overview main business in Europe are information & telecommunication system, power system, railway system and construction machinery. Hitachi have an expected income of 400 billion yen by 2018.

Core capabilities

Hitachi is the biggest Japanese company that has diversified to so many different markets. They have aircrafts, aircraft engine, automotive system, components and devices, construction machinery and defence system. Due to diversifying to many areas, Hitachi focuses on different parts of items in different parts of the world. For example, railway in Europe while elevators in China while automotive parts in North America.

Role of government

During world war one, as Japan minimised imports, Hitachi had to get local big companies to purchase their products. Zaibastu was disbanded before World War 2 as it held too much power. During 1960s, MITI allowed General Electric, RCA, Xerox to sell their products in Japan, but have to agree to joint venture with other Japanese companies and share technology (Hitachi with RCA). During that time IBM was big in Japan, the government did not want them to succeed thus the government gave Hitachi’s customer favourite terms from gov-sponsored “JapanElectronic Computer Corporation”. The Japanese government also help in developing computer technology investing 22 billion yen.

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