(n late 1)*+ $a,uma Tateisi rented a factory to produce #is in-ention and in 1)** founded t#e Tateisi lectric anufacturing Company &#ic# &as began to produce /0ray timer. #en orld &ar second destroyed $a,uma0san2s To%yo office and main Os%a factory3 t#en #e built a ne& factory in t#e Omuro district of $yoto. 4e too% t#e name of to&n as t#e brand name for #is product starting in 1)56 and t#en in late 1)7) 8Omlon9 became 8Omron9. T#is is #o& $a,uma Tateisi found 8Omron9. Omron &as %no&n for multiple engineering.
Development
(n t#e 1)7+2s ( de-eloped a solid state proimity s&itc# called as 8dream s&itc#9. (n t#e 1);+2s built an R<= laboratory at 5 times its capital. Omron &as t#e &estern >apan competitor to eastern >apan2s Sony and &as listed on t#e $yoto and Osa%a stoc% ec#ange. Omron introduced orld2s first AT mac#ine &#ic# &as capable of dispending se-eral different item and accepting a -ariety of currency.
Omron introduced 1 st #ealt# de-ice in 1);? and t#en in 1);5 introduced automated traffic signal and in late 1);@ came out &it# automated train station. Omron opened 1st R<= center in ountain -ie&3 California and t#en in Singapore in 1)@? and after t#at launc#ed t#e smallest calculator &#ic# &as 8Calculet01?++9. Omron s#o&ed its product in 1? >apanese ports to 1?*5++ -isitors. !et&een ?++? and ?++@ profitability gre& and Omron earn profit of ;.* billion. As Omron gre& t#roug# acBuisition and t#e only company in one of Omron2s social area &ere considered and Omron reputation as a preferred acBuirer &as partially based upon ecellent integration of acBuired companies. (n 1)@1 =r. uta%a Da%amura a medical doctor approac#ed $a,uma &it# a proposal &#ic# states t#at Omron to consider building a factory staffed &#ic# &ill run by p#ysically c#allenged people. And t#en in late 1)@? a Eoint -enture &as introduced under slogan 8Dot c#arity3 but a c#ance9. T#e collaboration bet&een academics and Omron #as been %ey for t#e de-elopment for se-eral tec#nologies &#ic# includes t#e Ad-ance Optical (nspection tec#nology al0art manager -isited Omron2s manufacturing plant in C#ina and epressed interest in a blood pressure monitor design for &omen because &omen are t#e most common buyer of blood pressure monitor for t#eir family t#is interest #eld Omron #alf t#e global mar%et s#are in blood pressure monitor until ?++6. (n mid0?+++ lectronic Component !usiness mo-ed to c#ina t#at &as Omron2s first -ertically integrated. Omron &as a top brand in S#ang#ai &it# o-er @+F of people li-ing in S#ang#ai according to a sur-ey done in C#ina. Omron &as t#e first >apanese company in C#ina t#at t#e go-ernment permitted to #a-e a #olding company in C#ina. Omron &as t#e &orld leader in t#e field of automation. Automation business also #ad a gro&t# in eac# area li%e Buality impro-ement3 &or% safety etc. lectronic component business &as t#e second largest relay manufacturer and largest mobile bac%lig#t ma%er in t#e &orld. Social system business it2s a domestic business &as preferred to >apan2s automated rail&ay3 road&ay and security control system. (n 4ealt#care business Omron #ad smallest business in term of sales but #ealt#care &as t#e Omron brand &as best %no&n for.
SWOT ANALYSIS
STRENGTHS
1. 4uge employee base: Omron #ad an employee base of around *;3+++ employees ?. "ocused more on R<=: it# an in-estment of 6F of t#eir re-enue3 Omron &as ta%ing up inno-ation *. T#e -arious products a-ailable: T#ey #ad a portfolio of products a-ailable t#at &ere inno-ati-e3 for e.g. #and gesture recognition tec#nology. 5. 4uge mar%et s#are: T#e company #ad #uge and robust mar%et s#are. 7. any firsts Omron &as t#e first company to come up &it# fe& medical eBuipment3 AT mac#ines3 oilfield and marine eBuipment etc. WEA!NESSES
1. =ecreasing financial position and decrease in t#e margins T#e company &as producing many products &#ic# &as sold &it# -ery lo& margins so as retain t#eir mar%et. ?. =ependence on >apan and Asia for production As a result of t#is &ea%ness3 Omron &ould #a-e to incur #ig# cost of distribution. *. =epending on t#e Asian mar%ets for re-enue. Any economic do&nturn in t#e Asian countries &ould affect Omron in a negati-e &ay.
O""ORT#NITIES
1. Potential for strong global epansion Omron &anted to go Global and tap into t#e mar%ets it #ad not focused on and ma%e use of t#e potential opportunities t#us it came up &it# 8Small but Global9 concept. ?. Gro&t# in t#e electronics components mar%et
it# consumer electronics and ot#er electronic items ta%ing pace and importance3 t#is &as #uge opportunity t#at Omron #ad *. AcBuisitions of Smaller enterprises Omron effecti-ely managed collaborations &it# all its sta%e#olders3 one among t#em are its acBuisition targets. T#is &ill #elp Omron to boost its operations and ac#ie-e its financial position &it#out losing it furt#er.
THREATS 1. T#e company faced se-ere competition – in pricing t#e products !ecause of its distribution costs3 t#e products of Omron #ad #ig# costs compared to its competition. ?. Compliance of -arious en-ironmental la&s and regulations As t#e company &as aiming for Global epansion3 it #ad to properly follo& t#e rules and regulations set fort# in t#ose countries. Anal$%i%
Omron #ad -ery lo& barriers to imitation &it# its ser-ice based business3 #o&e-er it #ad to face #uge competition in its resource based business i.e. t#eir products. Spea%ing about t#e capability of competition3 it #ad to mo-e a&ay from lo& strategic commitments to absorpti-e capacity as it aimed for Global epansion. (t #ad to %eep a loo% at t#e industry dynamism and c#ange3 ot#er&ise it &ould affect its competiti-eness in t#e mar%et.
&OR"ORATE LE'EL STRATEGY As Omron &as %no&n for multiple ngineering firsts and listed on t#e $yoto and Osa%a Stoc% c#anges .T#oug# it introduced first -ending mac#ine and AT mac#ines too. T#e company #ad 7 business lines3 containing 67 business domains and t#eir re-enues ranging nearly from 7+. =ifferent strategys underta%en are:
Small but global: T#e company &anted to be small in t#at t#e business
domain is not particularly large 3but at t#e t#e same time Global in t#at t#ey aim for global position. =ue to t#e c#ange in t#e organi,ational model and domestic mindset 3t#e
company strengt#ened itself in t#e area of strategic business restructuring and t#is &ay Omrons &ay of go-ernance #as also c#anged. Calculation of o-erall enterprise -alue by comparing t#e !rand -alue
and mar%et -alue to focus on corporate principles. T#e identification and resolution of social needs as Omrons core
competency. T#eir motto is at &or% for a better life 3a better &orld for all
(#SINESS LE'EL STRATEGY Omron al&ays try to compete &it# t#eir last performance as t#ey &ant to gi-e t#eir best and compete3 t#ey c#allenge t#emsel-es to perform better t#an last t#ey performed. T#ey in-ent t#e products according to t#e social needs3 t#ey identify t#e needs and t#en inno-ate. T#e strategies t#ey ta%e at business le-el are: •
•
•
•
•
(ndustrial Automation !usiness H(A!I0 (A! produced factory automation eBuipment sensors0 sensors3 safety components3 controllers3 relays3 s&itc#es and ot#er control eBuipment0 to #elp to impro-e factory floor producti-ity in a &ide -ariety of industries. lectronic Components !usiness HC!I0 Omron2s focus on sensing and control3 C! produced and sold electronic components for use in #ouse#old appliances and mobile electronic de-ices. Automoti-e electronic Components !usiness HACI0 AC &as spun out of C! in ?++*3 it as le-eraged t#e tec#nology of t#e no& separate C! to manufacture and sell C! de-ices adapted for use in automobiles. (n ?++@3 AC &as ma%ing significant in-estment in t#e de-elopment of net generation safety products suc# as laser radars and ot#er image sensing tec#nologies3 for use in emerging automated brea%ing systems. Social Systems !usiness HSS!I0 Almost eclusi-ely a domestic business3 SS! &as a preferred pro-ider of >apan2s automated rail&ay3 road&ay and security control system. 4ealt#care !usiness H4C!I0 Omron2s smallest business in terms of sales3 as its only !?C business. 4C! #ad epanded into t#eir 84ealt#care At 4ome9 electronic de-ices3 including &eig#tJbody fat monitors3 digital t#ermometers etc.
•
!usiness =e-elopment and Ot#er0 T#e remainder of Omron2s business operations &ere separated into a sit# grouping. T#is group of business included t#eir entertainment business3 personal computer perip#erals and simple anti0t#eft de-ices for automobiles.
