Case study on MABUCHI MOTORS CO. LTD Essay Example | Topics and Well Written Essays - 750 words

Case study on MABUCHI MOTORS CO. LTD - Essay Example (Mabuchi Motor Co., Ltd.). The strategic management of Mabuchi Motor Co. Ltd., has come in for acclaim for its use of innovation in products, processes, and management techniques that has made the company a formidable business enterprise. This was rewarded by, Mabuchi Motor Company becoming one of the first four Japanese companies to receive the Porter Prize in 2002. (New Porter Prize Awarded in Japan). Mabuchi Motor Co. Ltd. has concentrated on market and production location diversification, while hanging on to its limited product range strategy. (Goerzen, A., 1998). This strategy of Mabuchi, enables it to concentrate all its efforts into its single product, and consolidate these efforts to give it opportunities into diverse markets. This also signifies the strong confidence of Mabuchi in its product enhancement to meet new challenges in the market for small electric motors. The disadvantage of a single product portfolio is that it makes the creation of adequate demand for the product a very significant factor. Mabuchi has turned this disadvantage into an opportunity, as it strives to meet customer requirements within its narrow product base. The Germany Company, Braun is the largest manufacturers of electric razors, and approached Mabuchi with an attractive proposal to enlarge its product base by developing an electric motor without a steel core. Mabuchi refused this offer, but t ook this up as challenge, and convinced Braun on the true capabilities of its steel-core electric motors, and developed a motor for Braun at roughly one-tenth the price of the motor that was in use at that time by Braun. This endeavor of Mabuchi has made it the sole supplier of small electric motors to Braun. The ability of Mabuchi to develop electric motors for diverse application provides it with a window of opportunity for finding new markets. (Hiroaki, N.). The prices of the products of Mabuchi are extremely competitive. This is because of