Hitachi

Hitachi Ltd. is the largest manufacturer of electrical machinery and a leading producer of semiconductors in Japan. In 1910, Hitachi was established at Ibaraki Prefecture by Namihei Odaira (an electrical engineer). The company produces its first product, the first 4 kilowatt (5 hp) induction engine in Japan, initially used for copper mining. The company was originally an internal joint venture of Prairie Guardian Mining Company in Hitachi, Ibaraki Prefecture. In 1918, the headquarters of Hitachi Company was moved to Tokyo. The name of Hitachi Ltd. is derived from the birthplace of Hitachi City, Ibaraki Prefecture. Odaira said that: “When I saw the rising sun from the sea and I tell myself this was the best view of the territory, so I started to name my company as hitachi.”

Hitachi is Japan’s largest conglomerate. It has been hit by losses in the past few years due to sluggish fierce competition and domestic demand and in the consumer electronics market. Together with Sony, Panasonic and Sharp, Japanese company Hitachi used to be an electrical giant. It was one of those brands in almost every household that you would find. The organization now loses billions of dollars a year. Why Hitachi suddenly failed to innovate is the revolution in digital technology. Hitachi Ltd. companies are good at hardware manufacturing, and software technology is in a weak position, which has led Hitachi Ltd to fall into the adversity of the global digital revolution.

Companies are good at improving the manufacturing process and quality control, as well as the strict rules in process management. At the moment, the decline in consumer electronics manufacturing thresholds and excess mature capacity, coupled with the impact of the Internet era, the advantages of Hitachi Ltd companies are weakening, and some aspects are slightly redundant. Therefore, Japanese companies are experiencing a decline in both global appliances and consumer electronics. As a result, the electronics industry has changed, where customers are not as focused on their high-priced products. Not only did the digital revolution change the way electronic devices operated, it also changed the way they were made. For example, Apple Company are making iPods and iPhones.

They get at least 50 % in profit margins. People say that iPhones are made in China, but perhaps just 3% of the iPhone’s value remains in China. You can see that’s so difficult to get profit today on the level of just manufacturing and you need to do a lot more. Hitachi revealed in 2012 that they’re going to stoop manufacturing TVs, but the factory used for it is going to start making projectors and chips instead. Hitachi’s president, Hiroaki Nakanishi, is giving his opinion about the brand’s prospects now and what went wrong. After successful reforms in recent years, it has been born again. Although the current Hitachi business is still very complicated and lack of high-profit pillars, but eventually eliminated the loss business, which is one of the models for the transformation of Japanese enterprise.