Hitachi Ltd., the Company That Changed Japanese Corporate Culture: What Lies Beyond "Selection and Concentration"
Hitachi, Ltd., a leading Japanese electronics manufacturer, is once again drawing attention in the business world. Having once experienced significant losses, the company achieved a dramatic recovery through a strategy of "selection and concentration." This success is said to have had a major impact not only on Hitachi itself but on Japanese corporate culture as a whole.
"Selection and concentration" refers to a strategy of selling or discontinuing less profitable businesses while focusing management resources on areas where growth is expected. Hitachi made a major shift from its traditional focus on home appliances and hardware toward services that utilize IT and digital technology. Through this decision, the company regained the strong competitiveness needed to compete in the global market.
This move by Hitachi brought about significant changes in other Japanese companies as well. Previously, it was common for Japanese firms to maintain a wide range of businesses, but after seeing Hitachi's success, an increasing number of companies began to re-evaluate their own strengths and strive for more efficient management. Hitachi became a model case for how traditional large Japanese corporations should transform.
Currently, Hitachi is moving toward the next step beyond "selection and concentration." This involves not just streamlining businesses, but creating new value to solve social issues. In particular, the company is focusing its efforts on technological development to create a sustainable society, such as addressing environmental issues and promoting digitalization.
Hitachi's stance of continuously pursuing new forms without fear of change holds very significant meaning for the future of the Japanese economy. As a company that has led the Japanese business world, many investors and business professionals are closely watching its next moves to see what kind of future it will envision.