2020

Taimoor Sultan
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01-210192-028
Hitachi Case Study
11/23/2020
Introduction:
At beginning of 20 centuries japan was moving ahead modernization of its industries. Namihei odaira
bring the innovation in technology in japan by using Japanese technologies 1910 odaira was an employee
in the electric shop of a Kuhara mining company realized that japness technologies was lagging behind
the west , then he start doing experiment independently and produced his first 5 hrs motor that was the
starting point of Hitachi company Hitachi is originally found by Namihei odaira almost a century ago. the
motive of Hitachi is helping and contributing for the society solving the problem of people by bringing
the innovation into their daily life and making their life easy .Hitachi founder have strong belief to
contribute the society by giving superior and best technology product.

Feasibility Analysis
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Feasibility analysis process can help us to understand Hitachi business strategy in India.
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 Need of Electronic product and its industry in India:

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Temperature is increasing every year due to climate change as result weather was getting hotter
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with the passage of time, pollution in the air was increasing every day, and people were getting ill
due to unfiltered water. These reasons were creating huge demand of electronic machine-like Ac,
Room AC water purifiers, air coolers etc to overcome heat pollution, and waters problem.
Despite that lot of other company operating with electronic Product in India like Volta , LG
Samsung but Due to trends, mega trends of electronic equipment , huge demand of AC and
other electronic machinery there was many chances of increasing growth rate of each category
and electronic industry was also growing and moving towards innovation.

 Organization and financial analysis

Hitachi was successful manufacturing its product in japan and other countries and it has well
established Business structure and enough finances to that can easily enter in to new venture.
Hitachi entered in Indian market in 1998 with the collaboration of Amtrex-Hitachi Appliances
but after 2003 Hitachi had acquired all stake of Amtrex appliance and started its activity with
Hitachi home life and solution.

Initial company started its business with AC category and spread its business from all over India. Let have
a look on Hitachi products portfolio and its performances.
Competitive Analysis

Room AC Segment
Competitors: Hitachi vs Volta
Volta with multiple products was the market leader in Ac segments in spite of that Hitachi performed
very well in this Segments ,in which window Ac Contributed 22 percent of total sales and specially in
Invertor AC market that was only 10 percent of RAC Hitachi earned its 40 Percent of sales from this
market that’s was quite good .the reason of inverter Ac Success is that Vole was not targeting this
segments aggressively Hitachi promoted Inverter Ac on very large scale because inverter Ac consume
less electricity and it is eco-friendly ,that’s increase demand of inverter .More Company was expecting 10
percent more sales from this segments till 2020.

Commercial AC Segment
Competitors: Hitachi vs Blue Star
Commercial Ac Segments include, cassete Ac detectable Ac VRF systems and Chillers due to Extensive
use of the equipment in hospitality, banking, entertainment ,industrial and residential sector commercial
Ac has massive demand so that’s why Hitachi alone earned 37 percent from 59 billion market.in this
segments blue star was the major competitor in Commercial Ac along with other product like
refrigerators , water cooler ,air cooler and air purifiers . The company reported revenue of ₹35.47 billion
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in FY 2015–16
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Application-Based AC Segment:
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Competitors: Hitachi vs Samsung

In this segments Hitachi almost had monopoly because company was continually developing new product
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and technologies to meet the increasing demand and requirement of telecom sectors industry. Samsung
was also playing major role in this market was dealing with different kind of Ac, but Samsung focus was
Product range included colour TVs, mobile phones, home appliances, and different types of AC

Home Appliance Segment:

Competitors: Hitachi vs Volta, LG, Blue Star, Whirlpool, Samsung
Hitachi entered in home appliance segments in 2005 with refrigerators and washing machine and
targeted with small market but due to low demand of self-cleaning washing machine Hitachi was
struggling with segments and was focusing to expand its business in refrigerator because 1.45 billion
market of refrigerators was expected to grow by 10 percent by 2020
Future Possibilities:

Air Coolers
As we know Ac is only in demand in Summer season and every one can’t not afford Ac so that’s why
many brands expending their business to air Cooler ,water cooler ,air purifiers to target lower and middle
level income people Hitachi should also focus in these product because the air cooler market sold 7
million units worth 30 billion in 2015 and its expected to grow 10 million units by 2020 so in spite of lot
of competition Hitachi should more focus in this category because it has a good growth rate and Hitachi
can make huge difference by bringing some uniqueness in their product .
Water Purifiers:
Water quality is very bad and now it must be cleaned by putting tablets in it, as result so many diseases are
spreading. At there is hight competition in this market by the way, this market looks very small but on
the other hand it has high growth rate that was 23 percent till 2019.hitachi can target low income people
school and park to provide clean water every where and with the help of good customer services and
after sales services Hitachi can earned hug revenue from this market .
Water Dispensers
Due to rapid population growth, urbanization, industrialization and better health awareness all drive the
demand for water dispensers in India and market also getting attractive and growing every year .The
market was expected to grow annually at more than 13 per cent between 2016 and 2021.with other
competitors like volta, Atlantis and chines product making market more competitive .
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Appliances for Winter Season:

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Due to verity of season in India there is huge market for electronic equipment for winter season The
coldest temperatures of the season are typically experienced in December, to February.in this season
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demand increase in theses month like Warming Electric heater ,Gas heater, electric and gas Geyser
demand.so Hitachi can also target this market
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Conclusion:

Market of water ,air cooler and air purifiers has lot of potential and growth rate also increasingly every
years due to huge demand but there is lot of competition in theses market like volta, blur star Samsung
others well established brand are expending their business every year to get maximum market
share .What Hitachi can do and how Hitachi can play a major role in this market is that Hitachi should
follow Economies of scale method where company can expand its productivity in water ,air cooler and
purifiers as Hitachi done with Room Ac Segments like
In 2016, it had a production plant with a capacity of 430,000 room air conditioners (RAC) per year, five
regional offices, 20 branch offices, 203 exclusive sales and service dealers, over 4,000 dealer points, 33
exclusive showrooms, and a wide-ranging product portfolio.
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Improving After sales Services can also be very help full for Hitachi to grow its business in home
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appliances
An another thing Hitachi can do that to bringing some uniqueness in their home appliances product is
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also key step to lead this market like company done with duct able AC .The company’s duct able range
had four different models designed with built-in features unique to each model, and was used in small
corporate offices, banquet halls, small hospitals, and so on
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