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Komatsu Limited
The case describes how Komatsu established itself as the world’s second largest provider of earth-moving equipment (EME) company, behind Caterpillar. ... So what are the cost and value drivers which helped Komatsu to establish this position? ... In order to survive this increased competition, Komatsu realized the importance of advanced technology and of competing globally with products based on global standards and quality. ... It also established a Total Quality Control (TQC) program across all its factories to ensure highest quality in every aspect of Komatsu’s operation. ... In all I think the value drivers for Komatsu were Technology, Breadth of line, Quality, Service, and Customization.
In addition to the above value drivers Komatsu also initiated various cost initiatives. ... Organizational practices like the ‘F and F’ plan and good relations with the workforce also helped Komatsu to become a cost leader.
Approximate Word count = 667
Approximate Pages = 2.7
(250 words per page double spaced)
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