Introduction :
Toshiba is a Japanese multinational company. It’s headquarter situated in Tokyo. Founded in 1875, it has grown into a diversified business with interests in electronics, semiconductors, home appliances, infrastructure, and more. Toshiba is known for its contributions to various industries, including laptops, nuclear power, and medical equipment. The company was incorporated in 1939 as Tokyo. It adopted its present name in 1978.
BUSINESS DESCRIPTION
Toshiba Corporation, headquartered in Tokyo, Japan, is a diversified multinational conglomerate with a rich history spanning over 140 years. Established in 1875, Toshiba has evolved from its origins in consumer electronics and electric devices to become a global leader in a wide range of industries. Today, Toshiba operates in numerous sectors, including energy, infrastructure, electronics, and information technology.
Key Business Segments
1. Energy Systems & Solutions: Toshiba is a significant player in the energy sector, providing advanced solutions in nuclear power, thermal power, renewable energy, and energy management systems. The company designs, manufactures, and services power generation systems, helping to supply reliable and sustainable energy worldwide.
2. Infrastructure Systems & Solutions: This segment includes Toshiba’s extensive portfolio of infrastructure-related products and services. The company is involved in the development and maintenance of social infrastructure systems, including railways, elevators, water treatment facilities, and building systems. Toshiba aims to enhance the quality of life and safety in urban and rural areas through innovative infrastructure solutions.
3. Storage & Electronic Devices Solutions: Toshiba is a global leader in the design and manufacture of semiconductors, memory storage devices, and electronic components. Its NAND flash memory technology is widely used in various digital devices, including smartphones, tablets, and computers. The company’s semiconductor products are crucial in the functioning of electronic devices and industrial applications.
4. Industrial ICT Solutions: Toshiba offers comprehensive industrial information and communication technology (ICT) solutions that cater to various industries, including manufacturing, logistics, and healthcare. These solutions integrate advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to enhance operational efficiency and innovation.
5. Digital Solutions: Under the digital solutions segment, Toshiba provides a range of services and products that leverage its expertise in IT and digital technologies. This includes cloud computing, cybersecurity, digital transformation services, and software development. Toshiba’s digital solutions help businesses optimize their operations and drive digital innovation.
Corporate Vision and Strategy
Toshiba is dedicated to contributing to the development of a sustainable society through its technological innovations and business activities. The company’s corporate vision, “Committed to People, Committed to the Future,” reflects its commitment to creating value for customers, shareholders, and society as a whole.
To achieve its vision, Toshiba focuses on the following strategic pillars:
- Innovation and Technology Leadership: Investing in research and development to drive technological advancements and create innovative solutions that address global challenges.
- Sustainability: Promoting sustainable business practices and developing eco-friendly products to reduce environmental impact and support a green economy.
- Global Expansion: Strengthening its global presence by expanding operations and partnerships in key international markets.
- Customer-Centric Approach: Enhancing customer satisfaction through high-quality products and services tailored to meet diverse needs.
Financial Performance
Toshiba has demonstrated resilience and adaptability in the face of changing market dynamics. The company’s financial performance reflects its ability to generate steady revenue and maintain profitability across its diverse business segments. Toshiba’s continuous focus on innovation, cost efficiency, and strategic investments has positioned it for sustained growth and long-term success.
Corporate Social Responsibility (CSR)
Toshiba is committed to corporate social responsibility and actively engages in initiatives that benefit society and the environment. The company’s CSR activities include promoting STEM education, supporting disaster relief efforts, and implementing environmental conservation programs. Toshiba strives to be a responsible corporate citizen by fostering sustainable development and improving the quality of life for communities worldwide.
Here`s a list of product categories associated with Toshiba:
1. Electronics: TVs, Blu-ray Disc players, PCs/laptops, 3D televisions, Laptops and PCs, Tablets, Televisions
-Storage Devices (e.g., hard disk drives, solid-state drives, memory cards)
-Digital Cameras
-Semiconductor Products (e.g., memory chips, microcontrollers, image sensors, power devices)
2. Appliances:
- Home appliances, Refrigerators, Washing machines, Air conditioners, Washing machines
- Air conditioners, Microwave ovens, Vacuum cleaners, Rice cookers
3. Infrastructure Systems:
- Elevators and escalators
- Control systems (air-traffic control, railway systems, security systems, traffic control systems)
4. Information Technology:
- Storage solutions (including HDDs)
- Printers
5. Medical Equipment:
- CT scanners
- MRI scanners
- Ultrasound equipment
- X-ray equipment
6. Retail Information Systems:
- Retail point-of-sale systems
- Imaging systems
7. Global Commerce Solutions: Solutions for global commerce and retail.
HISTORY
Around 1875, Toshiba made its market debut crafting intricately designed clocks and lifelike mechanical dolls. As time progressed, the company embarked on a journey of innovation, expanding its repertoire to encompass an array of pioneering products.
Toshiba’s early history is unique, with two distinct strands. One traces back to Tanaka Seizo-sho, founded by Hisashige Tanaka, renowned for his innovations like mechanical dolls and perpetual clocks. The other strand involves Hakunetsu-sha & Co., Japan’s first incandescent lamp manufacturer, which later diversified into consumer products. In 1939, these leading companies merged to form Tokyo Shibaura Denki, later known as Toshiba. This rich tapestry of innovation and evolution sets Toshiba apart in the realm of electric equipment manufacturing.
THE MARKETING AND ADVERTISING STRATEGIES OF TOSHIBA:
1. Brand Positioning: Toshiba has positioned itself as a provider of innovative and high-quality electronic products, ranging from laptops and TVs to home appliances and semiconductors.
2. Digital Marketing: Toshiba utilizes digital channels such as social media, search engine marketing (SEM), and display advertising to reach its target audience. This includes promoting new product launches, sharing customer testimonials, and engaging with followers to build brand loyalty.
3. Traditional Advertising: Toshiba also invests in traditional advertising methods like television commercials, print ads in magazines and newspapers, and outdoor billboards. These campaigns often focus on showcasing the features and benefits of their latest products.
4. Sponsorships and Partnerships: Toshiba partners with sports teams, events, and entertainment properties to increase brand visibility. Sponsorships help Toshiba reach specific demographics and associate its brand with values such as performance and reliability.
5. Content Marketing: Toshiba produces informative content such as how-to guides, product reviews, and industry insights to educate consumers and establish thought leadership in the electronics sector. This content is distributed through their website, blog, and social media channels.
6. Trade Shows and Events: Toshiba participates in trade shows and industry events to showcase its latest technology, network with potential partners, and generate leads. These events provide opportunities for hands-on product demonstrations and face-to-face interactions with customers.
7. Influencer Marketing: Toshiba collaborates with influencers and brand ambassadors who have a strong online presence and credibility in relevant niches. These influencers create sponsored content featuring Toshiba products, which helps expand the brand’s reach and credibility among their followers.
8. Customer Engagement and Support: Toshiba prioritizes excellent customer service by offering technical support, warranty services, and online forums where customers can ask questions and share their experiences. Positive interactions with customers help build brand advocacy and repeat business.
9. Localization: Toshiba tailors its marketing efforts to different regions and cultures to ensure relevance and effectiveness. This includes adapting advertising campaigns, product packaging, and messaging to resonate with local audiences.
STAGES OF BUSINESS DEVELOPMENT
Growing stage (1891-1931) (Growth Disaster and reconstruction)
Pioneering companies have led the charge in electric innovation in Japan. While Tanaka Engineering Works was making progress with a water wheel powered turbine generator, Hakunetsu-sha was working on a groundbreaking radio transmitter. In 1921, Tokyo Denki (formerly Hakunetsu-sha) revolutionized bulb technology with the invention of the double-coil electric bulb, cementing its place among the industry’s elite.
The devastating Great Kanto Earthquake of 1923 killed more than 100,000 people. Tokyo Electric Company, deeply affected by the disaster, mourned the loss of many employees. However, amid the rubble, the company’s president exuded a spirit of resilience, famously declaring, “A factory without a research institute is like an insect without antennae.” This policy propelled the Tokyo Electric Company into new frontiers, diversifying into medical equipment and radio technology, marking a testament to their indomitable spirit in the face of adversity.
In the 1930s, the Japanese government banned the production of household appliances in order to preserve important reserves of iron and steel for wartime needs. A time of trouble loomed over the horizon.
1932-1939
Aligned under the Mitsui Zaibatsu umbrella, led by Mitsui Bank, Shibaura Shisaku-sho (formerly Tanaka Engineering Works) and Tokyo Electric Company engaged in cross-shareholding and collaborated in various domains. With technological advancements, there has been an increasing demand for home appliances to integrate the advances achieved in heavy electrical appliances. In 1939, the two companies united, creating Tokyo Shibaura Denki (Name as Tokyo Shibaura Electric Co., Ltd.). With exalted ambitions, the merged entity aims to climb the ranks to become a major global manufacturer of electrical appliances.
1940-1956
Amidst wartime demands, the company expanded swiftly, fulfilling state orders for radios, vacuum tubes, and military supplies, while also producing generators. Bombing raids severely hampered production capacity. Post-war, the focus shifted to heavy electrical machinery initially, later transitioning back to smaller electrical equipment as reconstruction efforts advanced. To bolster sales and expand globally, new sales subsidiaries were established, facilitating exports to Southeast Asia.
1957-1972
During Japan’s economic boom in the late 1950s, Toshiba thrived in heavy electrical machinery, electronics, and communications. By innovating products and technologies, expanding factories, and establishing new facilities, Toshiba capitalized on the burgeoning markets, experiencing rapid sales and profit growth. To further globalize, it set up overseas subsidiaries for sales and manufacturing, gradually increasing its international sales ratio.
1973-1983
During the economic downturn post-1973 oil crisis, Toshiba prioritized R&D investment, recognizing it as vital for corporate growth. This focus yielded numerous world-first and Japan-first technologies. Additionally, efforts to enhance production, quality, efficiency, and delivery times bolstered profits substantially.
1984-1999
In 1984, Tokyo Shibaura Denki became simply “Toshiba” as the official name, followed by “Toshiba Corporation” in 1983 in English. Facing economic challenges in the 1990s, Toshiba adopted a strategy of concentrating resources in growing sectors and new ventures while reforming and restructuring declining areas. Semiconductors and PC business were prioritized. In 1999, Toshiba implemented an in-house company system, delegating authority to eight units for quicker decision-making and increased autonomy.
2000-2014
In the 21st century, Toshiba adapted to shifting economic dynamics, emphasizing restructuring to strengthen earnings and targeting growth sectors and emerging markets. It pursued a “concentration and selection” strategy while prioritizing the creation of innovative and cost-competitive products and services to compete globally.
2015-2024
In 2015, Toshiba faced a severe crisis due to accounting scandals and deficits in its overseas nuclear power business, leading to a significant reputation damage. To recover, it underwent a major restructuring, divesting several businesses and refocusing on energy, infrastructure, and electronic devices. In 2018, Toshiba reaffirmed its commitment to people and the future with the “Essence of Toshiba,” emphasizing its purpose and core values. Now, it aims to leverage its manufacturing expertise with digital and AI technologies to develop cyber-physical systems for business growth. Priority areas include achieving carbon neutrality and resilient infrastructure while providing high-value products and services to drive digital transformation and sustain growth.
Toshiba Corporation, based in Tokyo, was honored with the Minister of Internal Affairs and Communications Award at CEATEC AWARD 2023 for its groundbreaking Secure Space Management Solution, a cutting-edge millimeter-wave (mm Wave) radar walk-through detection system designed to identify and visualize potential threats, including hidden weapons.
CEATEC AWARD, a renowned event within Japan’s technology sector, celebrates pioneering products, services, and solutions across various domains, including academia, technology, markets, and future prospects.
The Minister of Internal Affairs and Communications Award, among Japan’s most esteemed recognitions, acknowledges contributions fostering CPS and IoT advancements, aligned with the vision of Society 5.0, through the deployment of advanced information and communication technologies, networks, AI, and IoT solutions in local communities.
Toshiba’s award-winning technology swiftly detects and reveals concealed hazardous items and weapons in under a second, distinguishing itself from existing body scanners used in places like airports. This rapid scanning capability makes it suitable for deployment in public spaces such as train stations, shopping centers, and event venues, without necessitating individuals to halt their movements.
The rise in indiscriminate acts of terror in crowded areas has heightened the importance of effective security measures. Toshiba’s solution addresses this need by improving security efficiency and labor-saving aspects while detecting dangerous objects such as gasoline, explosives, and ceramic knives that may elude traditional metal detectors.
The assessment by the CEATEC AWARD 2023 Selection Committee highlighted the critical role of Toshiba’s Secure Space Management Solution in enhancing security amidst evolving threats. By utilizing mm Wave radar technology originally designed for automotive applications, the system can detect both familiar and unfamiliar objects, thereby enhancing its adaptability and effectiveness across various scenarios.
The modular design of the solution allows for customization to suit different installation requirements and application scenarios, including nondestructive inspection relying on mm Wave characteristics. Its practicality, marketability, and efficient use of electromagnetic waves were key factors contributing to its recognition by the committee.
Initial Funding of Toshiba Company:
1. Founders’ Capital: Toshiba was founded through the merger of Tokyo Electric Company and Shibaura Engineering Works. The initial capital likely came from the founders’ own investments and assets.
2. Bank Loans: Given the scale of the merger and the establishment of a new corporation, it’s probable that Toshiba secured loans from banks to finance its initial operations and infrastructure.
3. Government Support: During the pre- and post-war era in Japan, the government often provided support to burgeoning industries. Toshiba might have received grants, subsidies, or favorable policies that aided in its establishment and growth.
4. Investors: It’s possible that Toshiba attracted investment from private individuals or other companies interested in the potential of the electronics and engineering sectors.
5. Revenue from Operations: Depending on the timeline, Toshiba would have generated revenue from its early operations, which could have been reinvested into the company for expansion and development.
6. Partnerships and Collaboration: Toshiba might have formed strategic partnerships or collaborations with other companies, which could have involved financial contributions or resource-sharing arrangements.
Different Stages of Funding of Toshiba company :
1.Initial Funding (1875): Toshiba was founded in 1875 in Japan as Tokyo Shibaura Electric K.K., initially focused on telegraph equipment. Funding likely came from the company’s founders and early investors.
2. Expansion and Diversification: As Toshiba expanded into various industries such as electronics, semiconductors, and nuclear energy, it likely secured additional funding through a combination of bank lans, issuing stocks, and reinvested profits.
3. Venture Capital and Partnerships: During periods of rapid growth and technological innovation, Toshiba likely engaged with venture capital firms and formed strategic partnerships to fund specific projects or ventures.
4. IPO (1959): Toshiba went public in 1959, listing on the Tokyo Stock Exchange. This initial public offering (IPO) would have provided significant funding for further expansion and development.
5. Debt Financing: Toshiba has likely utilized debt financing through bonds and loans to fund large-scale projects, acquisitions, or to address financial challenges during economic downturns.
6. Government Subsidies and Grants: Given its involvement in industries like energy and technology, Toshiba may have received government subsidies, grants, or incentives to support research, development, and infrastructure projects.
7. Mergers and Acquisitions: Toshiba has engaged in various mergers and acquisitions throughout its history, funding these activities through a combination of cash reserves, debt financing, and stock swaps.
8.Recent Developments: In recent years, Toshiba has faced financial difficulties due to accounting scandals and losses in its nuclear power business. Funding strategies may have included asset sales, restructuring, and seeking investment or buyout offers from other companies or investors.
Toshiba’s business strategy
1. Innovation: Toshiba prioritizes innovation across its diverse portfolio of products and services, aiming to develop groundbreaking technologies that meet evolving market demands.
Certainly, here’s an overview of some unique aspects of Toshiba’s business strategy:
Crafting a distinctive strategy for advancing the digital economy, capitalizing on evolving business landscapes, and harnessing the potential of data requires a blend of innovative vision and strategic execution. Here’s a unique approach:
2. Ecosystem Orchestration for Digital Prosperity: Toshiba spearheads an ecosystem orchestration model, uniting governments, businesses, academia, and communities to co-create a thriving digital economy. By fostering collaboration and co-innovation, Toshiba cultivates a dynamic ecosystem that nurtures entrepreneurship, accelerates technology adoption, and drives inclusive growth across sectors and regions.
3. Agile Navigation of Business Dynamics: Toshiba pioneers an agile navigation approach, leveraging real-time data analytics and scenario planning to swiftly respond to shifts in the business environment. By continuously monitoring market trends, consumer behavior, and competitive landscapes, Toshiba adapts its strategies and business models with precision, positioning itself ahead of industry disruptions and emerging opportunities.
4. Data Fusion for Insightful Decision-making: Toshiba harnesses the power of data fusion, integrating diverse data sources and advanced analytics techniques to derive actionable insights and drive informed decision-making. Through data fusion platforms and AI-driven algorithms, Toshiba uncovers hidden patterns, predicts future trends, and identifies untapped market opportunities, empowering stakeholders to make strategic choices with confidence and clarity.
5. Ethical Data Stewardship and Empowerment: Upholding ethical data stewardship principles, Toshiba champions data sovereignty, privacy, and empowerment, ensuring that individuals and organizations retain ownership and control over their data assets. By implementing transparent data governance frameworks and decentralized data architectures, Toshiba fosters trust, integrity, and accountability in data-driven ecosystems, enabling responsible innovation and value creation.
6. Human-Centered Design for Digital Inclusion: Toshiba adopts a human-centered design approach, prioritizing user needs, diversity, and inclusion in the development of digital solutions and services. By co-designing with end-users and stakeholders from diverse backgrounds, Toshiba creates inclusive digital experiences that cater to a wide range of preferences, abilities, and cultural contexts, fostering equitable access and participation in the digital economy.
7. Resilience through Adaptive Learning: Toshiba cultivates organizational resilience through continuous learning, experimentation, and adaptation. By nurturing a culture of curiosity, agility, and learning agility, Toshiba empowers employees to embrace change, embrace uncertainty, and drive innovation in response to evolving market dynamics and technological advancements.
This distinctive approach to advancing the digital economy, navigating business dynamics, and leveraging data reflects Toshiba’s commitment to innovation, collaboration, and ethical leadership in shaping a sustainable and inclusive digital future.
Challenges Faced By The Company
Toshiba Corporation has faced several challenges throughout its history, including:
1. Accounting Scandal (2015): One of the most significant challenges in Toshiba’s recent history was the revelation of accounting irregularities in 2015. The scandal involved overstating profits by billions of dollars over several years, leading to the resignation of top executives and tarnishing the company’s reputation.
2. Financial Difficulties and Losses (2010s): Toshiba’s financial difficulties in the 2010s were exacerbated by factors such as declining sales, fierce competition, and losses in its nuclear power business. These challenges forced Toshiba to undergo significant restructuring efforts, including divestitures, layoffs, and cost-cutting measures.
3.Natural Disasters: Like many Japanese companies, Toshiba has been affected by natural disasters such as earthquakes, tsunamis, and typhoons. These events can disrupt production facilities, supply chains, and operations, leading to delays and financial losses.
4. Legal and Regulatory Issues: Toshiba has faced various legal and regulatory challenges, including lawsuits, fines, and investigations related to antitrust violations, product defects, and environmental issues. These legal proceedings can result in financial penalties and damage to the company’s reputation.
5. Technological Disruptions: Rapid advancements in technology and changes in consumer preferences have posed challenges for Toshiba, particularly in the consumer electronics market. The company has had to adapt to shifting trends and invest in new technologies to remain competitive.
6. Geopolitical Tensions: Toshiba operates in a global marketplace affected by geopolitical tensions and trade disputes. Uncertainties related to tariffs, export controls, and diplomatic relations can impact Toshiba’s international business operations and market opportunities.
7.Corporate Governance Issues: The accounting scandal highlighted weaknesses in Toshiba’s corporate governance structure, including inadequate internal controls and oversight. Addressing these governance issues has been a priority for the company to restore investor confidence and ensure transparency and accountability.
FUTURE PLAN
Toshiba’s Mission 2050 is to lead the way towards a sustainable future by pioneering innovative solutions that address global challenges such as climate change, resource scarcity, and social inequality. Through cutting-edge technology, responsible business practices, and collaborative partnerships, Toshiba aims to create a world where people and the planet thrive together for generations to come.
SWOT
Strengths:
– Toshiba benefits from agreements with second-tier manufacturers, ensuring steady demand for its semiconductors and memory chips.
– Its research and development division enables the company to produce cutting-edge chips, setting it apart from competitors.
– Toshiba’s global presence allows for efficient market service and timely delivery of goods and after-sales support
Weaknesses:
– Dependency on subcontractors in less stable political and economic environments poses supply chain risks.
– Legal proceedings related to copyright and intellectual property rights impact the company’s global operations.
Opportunities:
– Positive prospects in the semiconductor market due to increasing global demand for electronic goods.
– Potential for revenue growth through production agreements for new product launches, particularly in NAND memory and emerging 3-D chip markets.
– Access to cheap, high-quality labor in emerging markets could enhance global manufacturing scale and reduce shipment costs.
Threats:
– Competition from rivals like Intel and Samsung, particularly in mobile device chip development.
– Rapid technological advancements in the electronics industry may render innovations obsolete quickly.
– Risks of regulatory changes regarding semiconductors, environmental standards, and chip regulations in various markets.
Conclusion: –
To drive profit and market share growth in the global semiconductor industry, Toshiba should strategically pursue manufacturing agreements with major chip buyers like Apple and HTC. By leveraging partnerships with these industry giants, Toshiba can tap into the expanding demand for consumer electronics, particularly smartphones and tablets. This approach enables Toshiba to align its production with market needs and consumer preferences, fostering sustained growth.
Additionally, Toshiba should prioritize innovation across various consumer electronics sectors, including home appliances. By continuously introducing innovative products, Toshiba can stimulate demand and strengthen its competitive position in the market. Close collaboration with clients is essential for understanding evolving market dynamics and consumer preferences, facilitating the development of tailored solutions.
Given the oligopolistic nature of the semiconductor market, Toshiba must maintain cost efficiency to mitigate market disruptions caused by price fluctuations. Keeping manufacturing and research and development (R&D) costs low is crucial for sustaining profitability and ensuring long-term competition.