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Komatsu 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.”

Komatsu Ltd.

Komatsu is a diversified company engaged in manufacturing and selling construction and mining equipment, industrial machinery, and vehicles. In addition, the company has interests in other business areas such as housing, transportation and logistics equipment. The company has global operations spanning four continents: Asia, Americas, Europe, and Africa. It is headquartered in Tokyo, Japan and employs about 39,267 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Wide range of products
  • Geographic diversification

Weaknesses

  • Weak performance in the domestic market

External

Opportunities

  • Growing residential sector in Asia
  • Rising demand for iron ore

Threats

  • Environmental regulations
  • Intense competitive pressures
  • Sluggish growth of the Japanese economy
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