Toshiba Case Study

Today, technology is a very hot topic. Doing business is getting harder because of development of technology. As one of popular industry, electronics is much more competitive than other industries. One new developed technology can be surpassing in few months or even days. There are hundreds of electronics companies come and go very year, but only few of them can survive under the competitive market. Toshiba, as one of biggest electronics companies is very successful in the industry. Toshiba Corporation is a multination electronics and electrical equipment corporation. It headquartered in Tokyo, Japan. In 2010, Toshiba become the world fifth-largest personal computer vendor measured by revenues. Why Toshiba is so successful? There are three main reasons lead Toshiba become an electronics empire which are strategy, expansion of foreign market and timing of entry.

Toshiba was founded by the merging of two companies in 1939. The first, Tanaka Seisakusho was Japan's first manufacturer of telegraph equipment and was established by Tanaka Hisashige in 1875. In 1904, its name was changed to Shibaura Seisakusho. Through the first part of the 20th century Shibaura Engineering Works became a major manufacturer of heavy electrical machinery and became a world industrial power. The second company, Hakunetsusha, was established in 1890 and was Japan's first producer of incandescent electric lamps. It diversified into the manufacture of other consumer products and in 1899 was renamed Tokyo Denki. The merger in 1939 of Shibaura Seisakusho and Tokyo Denki created a new company called Tokyo Shibaura Denki. It was soon nicknamed Toshiba, but it was not until 1978 that the company was officially renamed Toshiba Corporation.

What is a Strategy? A firm's strategy can be defined as the actions that managers take attain the goals of the firm. Most likely, strategies would focus on profitability and profit growth. Toshiba is a company that always try searching and experiencing the best fitted strategy. Since Toshiba started engaged in production of heavy electrical equipment and appliances, it is focus on long term development. In the 1980s, Toshiba Corporation has undergone a major adjustment on their product income structure which is focus on information and communication related products. Because of that, it industrial electronics market share increase from 28% to 49% in 10 years. Information and communication equipment and household appliances become Toshiba's major business area. Because of the difficulty to gain more market share in Japan, Toshiba has introduced global strategy which is focusing on open new market in foreign countries. Somehow, this strategy