Professional Documents
Culture Documents
Strengths
One of the biggest industrial groups in Japan with strong presence in automobiles and good
financial position.
The company has developed electric cars, which have been received very well in the market.
Mitsubishi is one of the most popular brands in the automobile industry with excellent advertising
and brand presence.
The Corporation has seven vehicle manufacturing facilities in five countries, Japan, Netherlands,
Philippines, Thailand, United States and Brazil.
Mitsubishi motors is a global brand having a wide geographic reach with strategic alliances
- Hirokazu Nakamura became president of Mitsubishi in 1989 and he urged greater
reliance on Mitsubishi's ties to southeast Asian companies and markets.
- By the mid-1990s, Mitsubishi Motors counted major alliances in Malaysia, South Korea,
and Thailand
- Proton, the joint venture between Mitsubishi and Malaysia, controlled 75 percent of the
Malaysian market.
- Mitsubishi maintained a presence in South Korea with a 6.7 percent stake in Hyundai
Motor Co.
- Supplied 50 percent of Taiwan's vans and trucks by sending kits to China Motor Corp.
Weaknesses
The company was affected by the Asian crisis.
- In September 1997 the company closed its Thai factory in response to a crash in the
country's currency and the plummeting of consumer demand.
- Mitsubishi had little support from sales in Japan, which were affected by that country's
own economic uncertainty into 1998.
Recurring quality and safety issues leading to high repair costs and suits.
- Scope of the cover-up and recalled about 620,000 cars and trucks for several of the
reasons identified in the concealed complaints.
Low brand awareness in the western markets
Opportunities
Increasing adoption of hybrid and electric cars in developed countries
- in-dash garage access control
Tie-up with leading automobile manufacturers and technology driven companies can help
Mitsubishi capture a new market
Threats
Increasing competition in the automobile industry
Ever increasing fuel prices can lead to decline in sale of cars
Government policies for the automobile sector across the world