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Hitachi Ltd (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Hitachi Ltd

Hitachi is engaged in the manufacturing of electrical and electronic products. It offers products ranging from industrial equipments to consumer electronic devices. The company primarily operates in Japan. It is headquartered in Tokyo, Japan and employs about 389,752 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Diversified product portfolio and balanced revenue stream
  • Strong focus on R&D
  • Strong revenue growth

Weaknesses

  • Low employee productivity
  • Relatively weak net profit

External

Opportunities

  • Initiatives to strengthen product range
  • Expanding global LCD display market
  • Growing global electronics market

Threats

  • Exchange rate fluctuations
  • Slowdown of the Japanese, the US and European economies
  • Regulations
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