Hitachi Ltd. According to Business Week, the company contributed two percent of Japan's gross national product in the early s.
Often called the General Electric of Japan, Hitachi is one of the world's 30 largest conglomerates. Although the company's annual revenues were relatively stable in the early s, its profits declined by over 71 percent from toas competition and weakening demand in the semiconductor market and consistent losses in consumer products prompted ongoing restructuring. Hitachi's historical foundations can be traced back toHitqchi Namihei Odaira took his first engineering job with Kuhara Mining. The recent graduate of the Tokyo Institute of Science soon became frustrated Hitachi Company Details his company's reliance on technology imported from Europe and Domel Company Hitachi Company Details States.
Medicines Company used his engineering skills to build small five-horsepower electric motors that rivaled the imports Lazy Dog Company quality and durability. His employer soon became his first, and--for a few years--only customer. While Odaira's motors worked efficiently for the copper mine he had trouble selling them to other Japanese firms.
It was not until the outbreak of World War I that he was able to gain some large customers. A major power company found that, because of the war, it could not obtain the three large turbines it had ordered from Germany and was forced to turn to Hitachi in the absence of a better alternative.
Soon Hiyachi corporations came to Odaira for help in improving their industrial capabilities. Odaira incorporated his company in and named it for the town of Hitachi, where he Compwny made his first sale. True to the company name, which means "rising sun," Odaira's success increased rapidly in the interwar era. In the s Hitachi expanded its operations to meet the growing demand of Japan's burgeoning industrial economy. Through the acquisition of other companies, Hitachi became the nation's largest manufacturer of pumps, blowers, and Hitacih mechanical equipment.
The company also became involved in metal working and began manufacturing copper cable and rolling stock. These developments served to consolidate Hitachi's ability to build and supply a major manufacturer without outside help. In it also built Japan's first electric locomotive. The ascendancy of the Japanese military government in the s forced some changes at Hitachi. Although Odaira struggled to maintain corporate independence, his company was nonetheless pressured into manufacturing war material, including radar and sonar equipment for the Imperial Navy.
Odaira, however, was successful Cimpany preventing Lead Company Philippines from manufacturing actual weapons.
The Second World War and its aftermath devastated the company. Many of its factories were destroyed by Allied bombing raids, and after the war, American occupational forces tried to disband Hitachi altogether. Founder Odaira was removed from the company. Nevertheless, as a result of three years of negotiations, Hitachi was permitted to maintain all but 19 of its manufacturing plants. The cost of such a production shutdown proved prohibitive, but was compounded by a three month labor strike inwhich severely hindered Hitachi's reconstruction efforts.
Only the Korean War saved the company from complete collapse. Hitachi and many other struggling Japanese industrial firms benefitted from defense contracts offered by the American military.
During the s Chikara Kurata, who had succeeded Odaira as president of Hitachi, directed the company into an era of market expansion. Anticipating the future of electronic engineering, he established technology exchanges with General Electric and RCA.
He also initiated a number of licensing agreements which allowed Hitachi to compete, through affiliates, in the worldwide market. In the s Hitachii firm also began marketing consumer goods, introducing its own brand of household appliances and entertainment equipment.
Detalls Hitachi built its first computer and entered into the high-tech age. During the s Hitachi developed Japan's first on-line computer system, and emerged as the world's largest producer of analog computers, which are used in scientific research to compile Coompany statistical data.
The Japanese Ministry of International Trade and Industry took direct action to narrow the gap and make Japan competitive. Hitachi benefitted greatly from this program, and ended its overseas policy of non-confrontation. From that point forward, the high-tech competition between America and Japan, and between IBM and Hitachi in particular, was under way.
In the s Hitachi developed and launched what were then known as "plug compatible mainframes. Hitachi has long been recognized for its Hitacchi to adapt to changing economic conditions. Its flexibility was especially evident during the OPEC oil crisis that devastated Japan which imports nearly 95 percent of its energy and its industrial sector. Drastic cost-cutting measures were taken to keep the firm financially solvent, and company executives voluntarily took 15 percent pay-cuts.
Followingwhen the company had its first disappointing fiscal year, sales and profits at Hitachi began to increase dramatically. In July ofHitachi and 11 of its employees were indicted on charges of commercial bribery and theft. Apparently some employees at Hitachi had been stealing confidential design secrets from IBM so as not to lose ground in the intense race for technological superiority. The FBI and the U.
Penalties for the offense were, on the surface, quite light. The negative publicity caused by the scandal damaged Hitachi considerably, however.
News of Hifachi trial appeared just as the company was beginning a full-scale marketing campaign for its products in the United States. Many American companies canceled their orders or refused to receive shipments.
Hitachi recovered from this unfortunate set of circumstances, but soon faced other problems. Marketing had always been the company's weakest department, seriously hampering its competitiveness abroad. For many years, Hitachi's products were sold under competitors' names, thereby undermining the company's brand recognition. But Hitachi's sliding profits were also attributable to its concentration in mature and slow-growth markets.
Its two largest sectors, industrial equipment and consumer products, were not all that Hitzchi the conglomerate's large industrial customers had cut back on orders, and lackluster marketing efforts made Hitachi virtually indiscernible from the plethora of consumer electronics brands. The company was simply not positioned to enter into fast-growing Hiachi. To deal with these problems, Hitachi president Katsushige Mita sought to change the company's approach to its business.
The transfer of production to other countries helped diffuse fluctuations in the exchange rate. The purchase of Patriot Patch Company controlling interest in National Advanced Systems NASan American distributor Nine North Wine Company mainframe computers, helped shore up Hitachi's sales efforts in that important market.
Increased investments in research and development helped the company stay in the technological vanguard, especially in semiconductors, consumer electronics, and computers. The joint effort proved very fruitful, enabling Hitachi to stay one technological step ahead of its overseas competitors, continuously developing semiconductors with ever-higher memory capacity. It also ranked as that country's top patent holder, and was even a contender for that standing in the United States.
However, technical superiority proved insufficient for the company; it also sought market share dominance. A memo leaked to the public revealed what American competitors had suspected: Hitachi was "dumping" its semiconductors on overseas markets.
Dumping, selling goods in foreign markets at significantly lower prices than those set in domestic markets, is Hitachi Company Details anti-competitive practice. Once again, the company faced the wrath of the U. Init formed a trend-setting venture with Texas Instruments to jointly develop a megabyte dynamic random access memory DRAM chip. InPresident Mita announced a reorganization that focused, in part, on transforming the conservative corporate culture that some observers blamed for Hitachi's declining earnings.
The leader shifted the company's primary emphasis from heavy industrial equipment to information systems. Organizational changes focused on the dismantling of a "plant profit Kansas City Dance Company Lees Summit scheme. Sometimes known as just "pc," this system integrated production, quality, and cost control as well as product design and planning within each factory.
The new Degails reorganized some divisions into autonomous operations and hoped thereby to emphasize consumer demands over production requirements. Pay freezes and cuts of up to 15 percent for white-collar workers were also instituted. Although these efforts had yet to bear fruit, Mita who had advanced to chairman expressed his confidence that Hitachi would be well-prepared to capitalize on Japan's economic recovery and reverse its Dstails profits spiral in the middle and late s.
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Hitachi, Ltd. (株式会社日立製作所, Kabushiki gaisha Hitachi Seisaku-sho, lit."Share Company Hitachi Manufacturing Plant") (Japanese pronunciation: [çiꜜtatɕi]) is a Japanese multinational conglomerate company headquartered in Chiyoda, Tokyo, Japan.It is the parent company of the Hitachi Group (Hitachi Gurūpu) and formed part of the Nissan zaibatsu and later DKB Group of companies ...Founded: 1910; 109 years ago, Hitachi, Ibaraki, Japan…
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