STRATEGIC MANAGEMENT: CASES

SHAILAJA

21E4145
 STRATEGIC MANAGEMENT OF MITSUBISHI

The Mitsubishi Materials Corporation Group utilizes its strengths that include "an advanced
recycling technology and business platform," "value chain from raw materials to products with a
stable supply," "unique material development and manufacturing technology," and "a team that
can unite to resolve issues," etc., to solve social issues, promote key group initiatives, and
strengthen its core businesses, and thereby further both social and economic values.

Business strategy of each segment:

Business goals Global First Supplier

▪ Create new businesses and products through the sophistication and

Long-term strategy integration of our core competencies (e.g. production and
development of oxygen-free copper, oxygen-free copper base alloys,
Business goals Global First Supplier

and functional materials as well as technical capabilities such as

bonding different metals, etc.)

▪ Accelerate of marketing activities to replicate successful practice

• Assign key account managers acting cross-sectionally

• Enhance information analysis by digital marketing such as the

employment of AI or IoT

• Share product roadmaps with customers (co-creation capabilities)

Specific measures of
• Develop new products through collaboration with Central Research
the FY2023 Strategy
Institute

• Fortify production capabilities such as establishing a mass production

system and improving productivity

• Pursue opportunities to execute M&A or business alliances

LONG TERM STRATEGY OF MITSUBISHI ELECTRIC:

Long-term
business Top 3 supplier in strategic markets
goals

▪ Promote clean manufacturing

Long-term
▪ Provide high-efficiency products with advanced technology
strategy
▪ Expand advanced metal powder business in electronic devices
Long-term
business Top 3 supplier in strategic markets
goals

Specific • Increase recycling rate in our tool recovery system and utilize renewable energy
measures
• Provide high efficiency tools and digital solutions
of the
• Transition to smart factory and optimization of logistics and supply chain
FY2023
Strategy • Expand advanced metal powder business to rechargeable battery market

Corporate planning strategy

The following are the key corporate planning strategies for supporting each business segment

R&D and marketing strategy: By focusing on changes in the external environment such as
megatrends, etc., MMC will create high value-added products and services mainly in IoT and AI,
next-generation vehicles, urban mines, and clean energy and decarbonization areas to meet
customer needs based on its integrated functions, material composite, infrastructure and mass
production, and recycling technologies.

Manufacturing excellence strategy: By formulating and realizing the factory vision based on the
business strategy, as well as enhancing the production process, and proactively utilizing external
knowledge, MMC will raise its manufacturing capability to the next level.

Quality management strategy: By optimizing its product/process design and equipment

maintenance plan, MMC will implement proactive quality management to ensure that non-
conforming products are not produced.

Digital Transformation strategy: MMC will use DX to strengthen our three key pillars:
"Business added-value", "Business operations competitiveness", and "Management speed". from
fiscal 2020 to fiscal 2025, MMC will invest approximately 40 billion and allocate 100 digital
professionals.
SWOT analysis is a vital strategic planning tool that can be used by Mitsubishi Electric
Corporation managers to do a situational analysis of the firm.It is an important technique to map
out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Mitsubishi Electric
Corporation is facing in its current business environment.

The Mitsubishi Electric Corporation is one of the leading companies in its industry. Mitsubishi
Electric Corporation maintains its dominant position in market by critically analyzing and
reviewing the SWOT analysis. SWOT analysis an immensenly interactive process and requires
effective coordination among various departments within the firm such as – marketing, finance,
operations, management information systems and strategic planning.
STRENGTHS:

Good Returns on Capital Expenditure – Mitsubishi Electric Corporation is relatively successful at

execution of new projects and generated good returns on capital expenditure by building new
revenue streams. Strong dealer community – It has built a culture among distributor & dealers
where the dealers not only promote company’s products but also invest in training the sales team
to explain to the customer how he/she can extract the maximum benefits out of the products.
Successful track record of developing new products – product innovation.

• Strong distribution network – Over the years Mitsubishi Electric Corporation has built a
reliable distribution network that can reach majority of its potential market.

• Strong Free Cash Flow – Mitsubishi Electric Corporation has strong free cash flows that
provide resources in the hand of the company to expand into new projects.

• Successful track record of integrating complimentary firms through mergers & acquisition.
It has successfully integrated number of technology companies in the past few years to
streamline its operations and to build a reliable supply chain.

WEAKNESS:

• Days inventory is high compare to the competitors – making the company raise
more capital to invest in the channel. This can impact the long term growth of
Mitsubishi Electric Corporation
• Limited success outside core business – Even though Mitsubishi Electric
Corporation is one of the leading organizations in its industry it has faced
challenges in moving to other product segments with its present culture.
• High attrition rate in work force – compare to other organizations in the industry
Mitsubishi Electric Corporation has a higher attrition rate and have to spend a lot
more compare to its competitors on training and development of its employees.
• The profitability ratio and Net Contribution % of Mitsubishi Electric Corporation
are below the industry average.
OPPORTUNITIES:

• New trends in the consumer behavior can open up new market for the Mitsubishi
Electric Corporation . It provides a great opportunity for the organization to build
new revenue streams and diversify into new product categories too.
• Opening up of new markets because of government agreement – the adoption of
new technology standard and government free trade agreement has provided
Mitsubishi Electric Corporation an opportunity to enter a new emerging market.
• Decreasing cost of transportation because of lower shipping prices can also bring
down the cost of Mitsubishi Electric Corporation’s products thus providing an
opportunity to the company - either to boost its profitability or pass on the benefits
to the customers to gain market share.
• Government green drive also opens an opportunity for procurement of Mitsubishi
Electric Corporation products by the state as well as federal government
contractors.

THREATS:

• Rising pay level especially movements such as $15 an hour and increasing prices
in the China can lead to serious pressure on profitability of Mitsubishi Electric
Corporation
• Growing strengths of local distributors also presents a threat in some markets as the
competition is paying higher margins to the local distributors.
• Intense competition – Stable profitability has increased the number of players in
the industry over last two years which has put downward pressure on not only
profitability but also on overall sales.
• Imitation of the counterfeit and low quality product is also a threat to Mitsubishi
Electric Corporation’s product especially in the emerging markets and low income
markets.
 No regular supply of innovative products – Over the years the company has developed
numerous products but those are often response to the development by other players.
Secondly the supply of new products is not regular thus leading to high and low swings in
the sales number over period of time.

Marketing Campaigns

Mitsubishi Motors launched a heartwarming campaign 2 months ago “LifeMadeBetter” on their

social media channel Youtube, showing a beautiful relationship between a son and his father
depicting the legacy and Mitsubishi motors making the lives of Filipinos better for over 50 years.
This campaign in a very short span gained success and popularity with 2.1M views, the highest
views among all the previous ad campaigns, and created a soft corner and impact in the minds of
the consumers.
•
Another remarkable campaign launched on their youtube channel was supporting India’s
growth of efficient building infrastructure with Mitsubishi’s wide range of innovative
solutions – Air Conditioning Systems, Elevators & Escalators, Factory Automation
Systems, and Semiconductors & Devices.
• The emphasis was on the vision of creating an India with a Smart infrastructure for a
Better Future. The campaign got successful and got 3x more views than its previous posts.
 • In Feb 2021 Mitsubishi launched a campaign on youtube which created the buzz in the
market “Changes for the Better – For Brighter Days Ahead “which emphasized making
this world a better place to live in by finding synergies with each other.
• The song present in the campaign represents MC’s unwavering belief to deliver “Changes
for the Better “by trusting each other regardless of age, and position and finding ways to
create a better world together.
• By highlighting these core values, the brand was able to attract 2x more subscribers to
their page with 16k+views in a short period.

Social Media Marketing Strategies

Mitsubishi is active on Social Media Platforms like Instagram, Facebook, Youtube, and
LinkedIn. Mitsubishi Corp account has maximum followers on Facebook whereas other segments
like Mitsubishi Motors and Mitsubishi electrics have more followers on Instagram than on
Facebook.
• The Facebook page has followers in the range of around 1M, whereas the Instagram page
has followers in the range of 500-600K.
• They are also active on LinkedIn with 55k followers, but there is no post yet posted on
LinkedIn by Mitsubishi. The posts on Instagram and Facebook contain mostly promotional
and informational content with posts regarding the revealing of new cars. The posts are
aesthetic and talk about performance and strong and bold features of dynamic cars
produced by Mitsubishi.
• Mitsubishi also talks about how the company continually contributes to building a
sustainable society with the plug-in hybrid electric vehicle and other environmentally
friendly technologies that are their strength.

Marketing Strategy of Mitsubishi :

Helping Build Smart Infrastructure Systems - Mitsubishi Electric India

Another remarkable campaign launched on their youtube channel was supporting India’s growth
of efficient building infrastructure with Mitsubishi’s wide range of innovative solutions – Air
Conditioning Systems, Elevators & Escalators, Factory Automation Systems, and Semiconductors
& Devices.

The emphasis was on the vision of creating an India with a Smart infrastructure for a Better Future.
The campaign got successful and got 3x more views than its previous posts.

Marketing Strategy of Mitsubishi :

“Changes for the Better ー For Brighter Days Ahead” – Mitsubishi Electric Group Song

In Feb 2021 Mitsubishi launched a campaign on youtube which created the buzz in the market
“Changes for the Better – For Brighter Days Ahead “which emphasized making this world a better
place to live in by finding synergies with each other.

The song present in the campaign represents MC’s unwavering belief to deliver “Changes for the
Better “by trusting each other regardless of age, and position and finding ways to create a better
world together.

By highlighting these core values, the brand was able to attract 2x more subscribers to their page
with 16k+views in a short period.

They are also active on LinkedIn with 55k followers, but there is no post yet posted on LinkedIn
by Mitsubishi. The posts on Instagram and Facebook contain mostly promotional and
informational content with posts regarding the revealing of new cars. The posts are aesthetic and
talk about performance and strong and bold features of dynamic cars produced by Mitsubishi.

Mitsubishi also talks about how the company continually contributes to building a sustainable
society with the plug-in hybrid electric vehicle and other environmentally friendly technologies
that are their strength.
Facebook : (990,817 followers)
LinkedIn: (178,514 followers)
Youtube: (35.4k subscribers)
Instagram: Mitsubishi Motors ( 589k followers)

SEO Strategies
Marketing Strategy of Mitsubishi - SEO

As per SEO ranking, it is stated that the number of keywords below 500 is bad, above 1000 is
good, and 10000+ is amazing. As we refer to the statistics, www.mitsubishicorp.com has 52,746
organic keywords which are amazing. It shows that the digital marketing of MC is doing a great
job and giving a wonderful number of insights.

Also, the organic traffic per month is around 1,38,482 which is again a good sign and the company
is performing amazingly in terms of its SEO strategies and the Google organic SERP results.

Influencer Marketing
Marketing Strategy of Mitsubishi - Influencer Marketing

Mitsubishi has collaborated with celebrities, websites, and pages, for their marketing purpose. In
countries like the Philippines, where people love their movie idols more than their family
members- product endorsement is a big thing.

Due to this belief, Mitsubishi has collaborated with Liza Soberano, a famous Filipino-American
Actress to endorse the Mirage G4 sedan.

Previously they enlisted the help of Maine Mendoza and Alden Richards to boost the sales of the
Mirage hatchback. Like this, they have many influencers with 15-20M+ followers who have
helped them to promote their launches and gain market share at the earliest.
Mobile Apps
Marketing Strategy of Mitsubishi - Mobile App

The company has its app available for both Android and iOS users. It’s an easy-to-use app and has
various amazing features such as scheduling service appointments, reminders, 24 hours Mitsubishi
assistant, news updates and promotions, and a sales & services locator.

E-commerce strategies
In talking about the e-commerce strategies, Mitsubishi has its website for each segment where
customers can choose, get the best offers and buy the product/service they want.

Besides that, Mitsubishi motors have also gone along with other websites like cardekho.com, and
carwale.com for more availability and ease in services.

Content Marketing Strategies

Mitsubishi is very active on social media platforms. With a vast range of segments, they have
different social media pages with a good amount of followers where regular content is being posted
regarding the new launches, awareness messages, use of the products, and core competency of
their products/services, which is very engaging and interesting.

The social media presence is very strong hence the source of posting content is through almost all
platforms Facebook, Instagram, LinkedIn, and Youtube positioning itself as a trustworthy and the
future brand of the world.

They also press releases through various sources like The Economic Times, The Hindu, and others
through their different websites

SEO Strategies
 As per SEO ranking, it is stated that the number of
keywords below 500 is bad, above 1000 is good, and
10000+ is amazing. As we refer to the statistics
52,746 organic keywords which are amazing. It
shows that the digital marketing of MC is doing a
great job and giving a wonderful number of insights.
Also, the organic traffic per month is around
1,38,482 which is again a good sign and the company
is performing amazingly in terms of its SEO
strategies and the Google organic SERP results.

The social media presence is very strong hence the source of posting content is through almost all
platforms Facebook, Instagram, LinkedIn, and Youtube positioning itself as a trustworthy and the
future brand of the world.
They also press releases through various sources like The Economic Times, The Hindu, and others
through their different websites

Mitsubishi’s corporate strategy

JAPANESE INNOVATIVE MARKETING CAMPAIGN

ENERGY CRISIS TACKLE

2005- Japan was 4th largest consumer of electricity in the world
80% of the energy supplied to Japan was from outside the country, dependant on other nations
which makes them vulnerable.
• Within 150 days Japan implemented a strategy, major consumption of energy is from
corporate offices due to the air conditioners.
• The employees were wearing double layered clothes, the temperature of air conditioners
had to be kept very low.
 • Ministry of environmental affairs requested corporate offices to adopt “COOL BIZ
CAMPAIGN”, wear summer casual clothes.

• The message needs to be conveyed and marketed to the citizens hence they organized a
fashion show where several CEO’s participated and senior executives took part.
• The prime minister himself featured and encouraged others, this was broadcasted in the
television leading to a fashion wave in the business environment.

• The cloth brands took this as an opportunity and launched a cool biz clothing line, barbers
gave cool biz hair cuts and the ecosystem emphasized on cool biz campaign by re-
engineering their whole process.
• The GDP of the country benefitted 100 Billion yen after 180 days of result, even today the
cool biz campaign is being followed which was started in 2005.

OUTCOMES:

• Not every complex problem need a technological solution, they approached it with human
centric solution.
• Without any protest about cool biz campaign they bought a revolutionary change and create
business opportunities.

DUBAI’S STRATEGY:

• 1960- UAE was not formed, in 1958 Abu Dhabi’s first oil drilled well exported it’s crude
oil to the world trade sailed in British signal during 1962.
• UAE is the seventh largest oil reserve in the world, the largest oil reserve is in Venezula
• Abu Dhabi has 92 billion barrels of oil whereas Dubai has 4 billion barrels of oil
• Sheikh Rashid was the ruler during the discovery of oil reserve in Dubai.
• They had oil reserve but not much to supply, they started exporting to countries at the same
time identified Dubai as the strategic location, port at the south east of Dubai connected to
 Iran, Persian gulf, an important point of trade center to India, Kazakastan, Russia,
Uzbekistan and Africa.

• It provided access to market of 1 billion people by both air and water ways. Jabeil Ali port
started in 1970, sand was taken out to create a deepwater port to transport Dubai’s oil and
build cutting edge to offer shipping services to the most valuable ships in the world.

• The port also provides advances cooling services with cooling facilities in less space.
Pharmaceutical products, cosmetics, Chocolates were stored. Jabeil Ali port is the 9th
Busiest port which handles 10% of the world container traffic with 14 million containers

• Oil contributes only 1% of Dubai’s GDP, by 2018 the maritime industry of Dubai
contributed 7% of the country’s GDP

• Sheikh built the second most valuable asset called the FREE ZONE in 1976, where 100%
foreign ownership was offered wherein there wasn’t a need to collaborate with local
company to setup business.
• 100% repatriation of capitals and profits, 100% of profits can be sent to our own country.
• 100% import and export tax exemption
• 100% exemption from global and corporate taxes
• Benefits of Dubai from the above
• De risking
• Diversification
• Irreplaceable global business eco system

Tourism at Dubai
• Dubai was easily accessible airway for country with 2 billion and 5 billion population, like
India, China and other nations
• Dubai has 16.91 million tourist arrivals in 2019 where as India had only 17 million tourist
arrivals. The tourism industry of Dubai contributed 11.5% of the GDP to the country, due
to its underwater zoos, ski slopes with snow, amusement parks, hotels.
• The rise of Dubai was not only due to Oil export but also due to the diversified business
environment, tourism, maritime trade, irreplaceable ecosystem and business policies.