Hitachi Limited: Construction Machinery
In 2021, Hitachi Limited was reconsidering its ownership of Hitachi Construction Machinery (HCM). The decision about HCM’s future was one of the last steps in a more than decade-long effort to reorient Hitachi from a manufacturing conglomerate to a service-oriented company. HCM was a global player in the construction and mining equipment business, and although it no longer relied on Hitachi for product technology, Hitachi’s technological capabilities might once again become more valuable to HCM as automation and electrification of construction and mining equipment gained importance. Would there be greater synergies from more closely integrating HCM with Hitachi’s other businesses, or would both sides be better off if HCM was completely independent?
Collection: Ivey Business School (Canada)
Ref: IVEY-W35323-E
Format: PDF
Number of pages: 20
Publication Date: Jan 25, 2024
Language: English
Description
In 2021, Hitachi Limited was reconsidering its ownership of Hitachi Construction Machinery (HCM). The decision about HCM’s future was one of the last steps in a more than decade-long effort to reorient Hitachi from a manufacturing conglomerate to a service-oriented company. HCM was a global player in the construction and mining equipment business, and although it no longer relied on Hitachi for product technology, Hitachi’s technological capabilities might once again become more valuable to HCM as automation and electrification of construction and mining equipment gained importance. Would there be greater synergies from more closely integrating HCM with Hitachi’s other businesses, or would both sides be better off if HCM was completely independent?
Read more
Year: 2021
Geographic Setting: Japan
Learning Objective
This case is suited for use in strategic management courses at the undergraduate and master of business administration (MBA) levels. After preparing and discussing the case, students will be able to:Appreciate the complexity of corporate-level strategic decision-making in large, complex organizations. Grasp the difficulty of implementing major changes to existing corporate-level strategies in large, complex organizations. Make distinctions between related and unrelated diversification. Identify potential synergies between different businesses. Evaluate costs and benefits of diversification options.
Leave your rating
"Hitachi Limited: Construction Machinery"
Register for free with IESE Publishing and enjoy all the advantages
What type of account do you want to create?
Choose account type
Professors
Academic Institutions
Companies
Individuals